Step-by-step solution file
Graphically illustrate a perfectly competitive firm incurring a
- Graphically illustrate a perfectly competitive firm incurring a loss in the short run.
Explain what is meant by ?shut-down determination? in the short run.
- If perfectly competitive firms are incurring a loss in the short run, graphically illustrate and explain the adjustments to long-run equilibrium.
Graphically derive and explain the underlying theory of the long run industry supply curve, assuming a constant cost industry
Fair value of Bonds without warrant = $ 136,000
Fair value of Warrants = $ 24,000
Total = $ 160,000
Allocation to bonds = $ 136,000 / $ 160,000 * $ 152,000 = $ 129,200
This question was answered on: Feb 21, 2020
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