All categories

2 years ago

4. Profit maximization and loss minimization

Business

1 answer:

Stella [2.4K]2 years ago

6 0

Jake is incorrect with his assertion that the BYOB should charge 2.25 per can.

<h3>What is Profit maximization and Loss minimization?</h3>

The process of Profit maximization ensures that favorable output and price are achieved to maximize its return while the process of Loss minimization ensures there is lower loss on return in the longer-run.

Price QD T*R(P*Q) Total cost(ATC*Q) Profit(TR-TC)

2 1000 2000 2750 -750

2.25 750 1687.5 2625 -937.5

Given that loss realized is lower in $2 per unit than $2.25 per unit, then, Jake is not correct with his assertion that the BYOB should charge 2.25 per can.

Note: The point has been placed on the graph to indicate the profit-maximizing price and quantity for BYOB.

You might be interested in

Question #2: Why should we simplify expressions in algebra Using race

rusak2 [61]

Answer:

Why should we simplify expressions in algebra Using race?

Learning how to simplify an expression is the most important step in understanding and mastering algebra. Simplification of expressions is a handy mathematics skill because it allows us to change complex or awkward expressions into simpler and compact forms.

xXxAnimexXx

Have a great day!

4 0

3 years ago

Read 2 more answers

In a unionized firm, the _____ clause of the collective bargaining agreement typically retains for management the authority to i

solmaris [256]

The answer is: "management rights" .
_________________________________________________________
"In a unionized firm, the <u> management rights </u> clause of <span>the collective bargaining agreement typically retains for management the authority to impose reasonable rules for workplace conduct and to discipline employees for just cause."
_________________________________________________________</span>

5 0

3 years ago

Suad Alwan, the purchasing agent for Dubai Airlines, is interested in determining what he can expect to pay for airplane number

lions [1.4K]

Answer:

Alwan expect to pay for airplane 4= $747818.48

Explanation:

given data

expect to pay airplane = 4

3rd plane produce = 20,000 hours

learning curve = 85%

solution

As here logarithmic approach allow get labor for any unit, TN, as

TN = T1(Nb)

here TN is time for the Nth unit and T1 is hours to produce the first unit

b = (log of the learning rate) ÷ (log 2) = slope of the learning curve

T3 = T1(3log(0.85)÷log2)

so we get

So Alwan expect to pay for airplane 4 = $747818.48

6 0

3 years ago

The following amounts are reported in the ledger of Mariah Company: Assets $ 78,000 Liabilities 41,000 Retained Earnings 9,000 W

Serjik [45]

Answer:

47000

Explanation:

4 0

3 years ago

the marketing mix, often known as the four ps of marketing, represent areas that a firm can adjust to influence demand for its g

GrogVix [38]

if a firm want to adjust the cost of a service by 2% to stay competitive, such firm will be focusing on the <u>Price in marketing mix</u>.

<h3>What is a marketing mix?</h3>

In marketing, these mix refers to those elements of a business's marketing that are designed to meet the needs of its customers.

The four elements of marketing mix are often called 4 'Ps' and includes:

price
product
promotion
place.

In conclusion, the firm will be focusing on the Price in marketing mix if a firm want to adjust the cost of a service by 2% to stay competitive,

<u />