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NISA [10]
2 years ago
8

The monopoly maximizes profit by setting a. price equal to marginal revenue. b. marginal revenue equal to marginal cost. c. pric

e equal to marginal cost. d. marginal revenue equal to zero
Business
1 answer:
Ksenya-84 [330]2 years ago
3 0

(C) price equal to marginal cost.

Monopoly is a market condition with only one seller of a product where there is barriers to entry of others and presence of no substitutes.

The level of profit is maximised in a monopoly when the marginal cost equal the marginal revenue. They choose an output and price certainly without exceeding the marginal revenue. The price is greater than average revenue of the production and get the profit maximise output.

In case monopoly quantity will be lower and the price will be higher than that of a competitive firm. Marginal revenue can only be zero when the production falls or not have been started yet.

To learn more about monopoly here,

brainly.com/question/5992626

#SPJ4

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In a purely competitive market, a firm finds that at its MR=MC output level the Total Variable Cost (TVC) equals $550, Total Fix
sergey [27]

Answer:

The correct option is B

Explanation:

A pure competition is describes as a market which has a wider range of competitors, those are selling the same kind of products.

A purely competitive market involves or comprise of the large or huge numbers of the firms who are making the standardized product, the market prices are determined by the demand of consumer.

In this case, MR is equal to MC, TVC is $550, Total revenue is $250 and TFC is $250. So, the firm have a scope for producing as it could still cover the total cost.

6 0
3 years ago
Eric's income increased from $40,000 to $50,000 per year. Eric's consumption of tickets to pro football games increased from two
uysha [10]

Answer: b. +3; normal

Explanation:

Income elasticity measures the responsiveness of quantity demanded to a change in consumer's income.  When demand for a good increases with an increase in income, it is termed as a normal good. While, when demand for a good decreases with an increase in income it is termed as an inferior good.

Using the mid-point method,

e_{i} = \frac{ 4 - 2}{\frac{4 + 2}{2} } * \frac{\frac{50000 + 40000}{2} }{50000 - 40000}

e_{i} = \frac{2}{3}  *  \frac{45,000}{10,000}

e_{i} =0.67*4.5

e_{i} = 3.015

Therefore, income elasticity is 3 and the good is a normal good as rise in income increases demand.

5 0
3 years ago
Examining a company's relationships with other individuals and entities can reveal important information about financial stateme
Andrei [34K]

Answer:

Examining relationships with related parties will show whether there are unusual transactions that significantly improve the company's reported financial performance

Explanation:

Examining related parties, will help to find out if due processes and set standards were followed and applied in company transactions, as the <em>'significantly improved reported financial performance'</em>, may not reveal the true financial performance of the company.

5 0
2 years ago
is the process managers use to continually monitor all phases of the production process to ensure that quality is being built in
Karo-lina-s [1.5K]

Answer:

Statistical quality control (SQC)

Explanation:

Statistical Quality Control (SQC) is the term used to describe the set of statistical tools used by quality professionals(managers). SQC is used to analyze the quality problems and solve them.

Statistical quality control refers to the use of statistical methods in the monitoring and maintaining of the quality of products and services.

it is used to monitor all phases in a production process.

8 0
3 years ago
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 2
Alecsey [184]

Answer:

Current value per share is $13.33

Explanation:

The two stage growth model of DDM can be used to calculate the price of the share today. The DDM values a stock based on the present value of the expected future dividends from the stock. The price of this stock under this model can be calculated as follows,

P0 = D0 * (1+g1) / (1+r)  +  [ (D0 * (1+g1) * (1+g2) / (r - g2)) / (1+r) ]

Where,

  • g1 is the initial growth rate which is 20%
  • g2 is the constant growth rate which is 5%
  • r is the required rate of return

P0 = 1 * (1+0.2) / (1+0.14)  +  [ (1 * (1+0.2) * (1+0.05) / (0.14 - 0.05)) / (1+0.14) ]

P0 = $13.33

5 0
3 years ago
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