JustAnswer > Homework
Ask A Question|Register|Login|Help
JustAnswer

Homework

Ask a Homework Question, Get an Answer ASAP!

Have your own Homework question?

7 Tutors and Teachers are Online Now
characters left:
Not a Homework Question?
Bookmark and Share

Question

A firm has invested a fixed amount of $100 million in plant and equipment to sell in market A. In market A, it has a monopoly, and by maximizing profits has annual revenues of $40 million and annual total variable costs of $20 million, giving it a 20 percent rate of return. The firm is considering expanding its business to sell in market B. To enter market B, it will need to spend another $100 million in fixed costs, and will then have annual revenues of $15 million and annual variable costs of $10 million. The competitive rate of return is 8 percent. The firm is unregulated and can do whatever it wants. Will the firm enter market B?

Submitted: 1298 days and 11 hours ago.
Category: Homework
Value: $9
Status: CLOSED
+
Read More

Optional Information

Optional Information:
Subject: economics

Accepted Answer

THIS ANSWER IS LOCKED!
You can view this answer by clicking here to Register or Login and paying $3.

Picture
Expert: Rahul Jain
Pos. Feedback: 98.3 %
Accepts: 
Answered: 5/4/2006

Tutor

BCOM(H), MBA, ACS

+
Read More

Related Homework Questions

  • how do people use rivers
  • Answer in the form of an essay, what are the three
  • 5 ways tp start an essay
  • What started the whole conflict?
  • what role did oliver cromwell play in the division of ...
  • 25-(-16)
  • factor.20x^2-23x-7
  • can an interger be a fraction or have a decimal?



Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.
Question List | Become an Expert | Terms of Service | Security & Privacy | About Us
© 2003-2009 JustAnswer Corp.