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1 year ago

What is the price and quantity for this natural monopolist under fair return pricing?

Business

1 answer:

Vaselesa [24]1 year ago

6 0

The fixed capital costs are small relative to total costs is the price and quantity for this natural monopolist.

The allocatively efficient amount of production, or socially optimal amount, is where demand equals the marginal cost, but the monopoly does not produce at that point. Instead, monopolies lead to dead weight due to high costs and too little production.

If a monopoly increases sales volume, all other things being equal, total sales increase. This is called the production effect. A monopolist's profit is equal to (price - marginal cost) times quantity. Monopoly average revenue is total revenue divided by production volume.

If the market does not produce at an efficient time, the welfare of society will be lost. The yellow triangle represents lost consumer surplus, and the red triangle represents lost producer surplus if the market were operating with monopolistic rather than competitive production.

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I GIVE BRAINLIEST! ASAP!!!!

marishachu [46]

Answer:

The government can influence interest rates, print money, and setting bank reserve requirements are all tools central banks use to control the money supply. Other tactics central banks use include open market operations and quantitative easing, which involve selling or buying up government bonds

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2 years ago

If nominal gdp is $12 trillion and real gdp is $10 trillion, then the gdp deflator is

Juli2301 [7.4K]

If nominal gdp is $12 trillion and real gdp is $10 trillion, then the gdp deflator is: 120, and this indicates that the price level has increased by 20 percent since the base year.

GDP deflator reflect the effects of new prices to the product that produced domestically.
It calculated with this equation:

GDP Deflator = GDP Nominal/Real GDP x 100

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6 0

3 years ago

Walt Bach Company has accumulated the following budget data for the year 2019.

mrs_skeptik [129]

Answer:

Walt Bach Company

a) Schedule of Cost of Goods Sold

Direct materials = $400,000 (2*$5*40,000)

Direct labor = 960,000 (1.5*$16*40,000)

Manufacturing overhead = 360,000 ($6*60,000)

Total cost of goods sold = $1,720,000

b) Budgeted Income Statement for 2013

Sales Revenue $2,200,000

Cost of goods sold (1,720,000)

Gross profit $480,000

Selling and admin. exp. 200,000

Income before tax $280,000

Income tax (30%) (84,000)

Net income $196,000

Explanation:

a) Budget Data and Calculations:

Sales: 40,000 units, unit selling price $55, Revenue = $2,200,000

Cost of one unit of finished goods:

Direct materials 2 pounds at $5 per pound = $400,000 (2*$5*40,000)

Direct labor 1.5 hours at $16 per hour = $960,000 (1.5*$16*40,000)

Manufacturing overhead $6 per direct labor hour = $360,000 ($6*60,000)

Inventories (raw materials only):

Beginning, 10,000 pounds;

Ending, 15,000 pounds.

Selling and administrative expenses: $200,000.

Income taxes: 30% of income before income taxes.

6 0

3 years ago

Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018: Factory rent $ 42,000

Doss [256]

Answer:

Results are below.

Explanation:

1) Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.

Direct material= Thread + Premium quality cotton material + Buttons

Direct material= 1,000 + 42,000 + 750

Direct material= $43,750

2) Direct labor is production or service labor that is assigned to a specific product, cost center, or work order. 

Direct labor= Wages paid to seamstresses + Wages paid to cutters Direct labor= 75,000 + 50,000

Direct labor= $125,000

3) Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.

Manufacturing overhead= Factory rent + Utilities for factory + Cutting room supervisor's salary + Factory insurance + Depreciation on sewing machines

Manufacturing overhead= 42,000 + 22,000 + 30,000 + 15,000 + 6,000

Manufacturing overhead= $115,000

4) Total manufacturing costs= 43,750 + 125,000 + 115,000

Total manufacturing costs= $283,750

5) Prime cost= direct material + direct labor

Prime cost= 43,750 + 125,000

Prime cost= $168,750

6) Conversion cost= direct labor + MOH

Conversion cost= 125,000 + 115,000

Conversion cost= $240,000

7) Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.

Period costs= Company advertising + Depreciation on salespersons' vehicles + President's salary

Period costs= 18,000 + 25,000 + 75,000

Period costs= $118,000

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3 years ago

In _____, the buyer is often the only member of the buying center involved in the process.

Pepsi [2]

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3 years ago