Assignment on the Marginal Firm

THE MARGINAL FIRM For the average firm, a formal bankruptcy is more costly than a private workout, but for other firms formal bankruptcy is better. Formal bankruptcy allows firms to issue debt that ros61752_ch30_923-938.indd 932 8/10/15 4:56 PM     CHAPTER 30 Financial Distress ■■■ 933 is senior to all previously incurred debt. This new… Continue reading Assignment on the Marginal Firm

Published

Relationship Between Inflation And Unemployment

Unemployment and inflation are an economy’s two most important macroeconomic issues. The federal government’s fiscal policy and the Federal Reserve’s monetary policy try to maintain both a low unemployment rate around a natural rate and a low inflation rate around 2%.In your Final Paper, · Evaluate the historical relationship between unemployment and inflation. (hint: You… Continue reading Relationship Between Inflation And Unemployment

Published

Discussion on Credit Market Conditions

Credit Market Conditions The Capital Market in DRC’s is one of the most underdeveloped in Africa. Meaning the Coca-Cola Company would seek financing for its projects through the treasury bonds and money papers that have been issued by the government. Seeking loans and debts from the international bankers situated in the region. It is evident… Continue reading Discussion on Credit Market Conditions

Published

The main rivals of Soft Drink essay

Competitors in DRC The main rivals of Soft Drink in the Democratic Republic of Congo are Pepsi and other local competitors. The management can fight off this type of competition by adapting to strategies that promote market performance and ensure that the company has attained growth with time. For instance, providing healthier drinks would beat… Continue reading The main rivals of Soft Drink essay

Published

Regulating Natural Monopolies

Regulating Natural Monopolies By the end of this section, you will be able to: • Evaluate the appropriate competition policy for a natural monopoly • Interpret a graph of regulatory choices • Contrast cost-plus and price cap regulation Most true monopolies today in the U.S. are regulated, natural monopolies. A natural monopoly poses a difficult… Continue reading Regulating Natural Monopolies

Published

Monopoly and Antitrust Policy

Monopoly and Antitrust Policy This OpenStax book is available for free at http://cnx.org/content/col12170/1.7     two U.S. firms announce a merger or acquisition where at least one of the firms is above a minimum size of sales (a threshold that moves up gradually over time, and was at $76.3 million in 2015), or certain other… Continue reading Monopoly and Antitrust Policy

Published

The Four Firm Concentration Ratio

The Four-Firm Concentration Ratio Regulators have struggled for decades to measure the degree of monopoly power in an industry. An early tool was the concentration ratio, which measures the combined market share (or percent of total industry sales) which account for the largest firms (typically the top four to eight). For an explanation of how… Continue reading The Four Firm Concentration Ratio

Published