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1 year ago

An imperfectly competitive firm has the following total cost curve: c = 100 4q. what is average total cost equal to when q = 10?

Business

1 answer:

liraira [26]1 year ago

6 0

The total cost $= 100 + 4q$

So, Marginal cost $= d/dq (TC) = d/dq (100 + 4q) = 4$

So, marginal cost is constant and its value is 4 for any unit.

So, when $q = 10$ , marginal cost $= 4$ .

Total cost $= 100 + 4* 10 = 140$

$Average total cost = TC/q = 140/10 = 14$

The average total cost equal to when $q = 10$ is 14.

<h3>What is the issue with markets that are Imperfectly competitive?</h3>

If imperfectly competitive markets acted competitively, the value of economic activity as measured by the total of producer and consumer surplus would be higher.
In other words, unfair competition causes a misallocation of resources that harms the economy.
Illustrations of Imperfectly competitive firm are,
Both oligopolies and monopolies are Imperfectly competitive firms.
If a company has a monopoly, it may be able to charge prices that are excessive by conventional standards.
Government intervention.
The stock market.

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B. 4.5%

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Explanation:

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Let plug in the formula

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Net profit margin = 4.5%

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Using this formula

Return on assets = (Net income+Interest expense)/Average total assets

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Return on assets= 8.1%

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= Net income/Average equity

Let plug in the formula

Return on equity = 3540/33270

Return on equity =10.64%

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2 years ago

Both Bond Sam and Bond Dave have 8 percent coupons, make semiannual payments, and are priced at par value. Bond Sam has 3 years

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Answer: -12.1%

Explanation:

Bond Sam was priced at Par which means it could have been priced at $1,000 and its yield was the same as the coupon rate of 8%.

If interest rates rise by 5%, the yield becomes:

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Price of bond is attached:

Yield = 13% /2 = 6.5% per semiannual period

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Price = $878.97

Percentage change in price:

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The average salesperson at The Container Store made $48,000 per year in 2013, compared to the national retail sales average of $

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