Answer:D. reject the offer because it will produce a net loss $21,000
Explanation:
Net income or loss is the total of firm's income less it's total cost( fixed and variable) . The contract will result in a loss $5 per unit which multiply by the total units of 4200 gives $21,000
Answer: $30
Explanation:
Given that,
Average variable cost (AVC) = $25
Average fixed cost (AFC) = $5
Marginal cost (MC) = $30
Average total cost (ATC) = Average fixed cost (AFC) + Average variable cost (AVC)
= $5 + $25
= $30
Therefore, average total cost is the sum of average fixed cost and average variable cost. Alternatively, average total cost is calculated by dividing total cost to units of output produced.
Answer:
1. 1,000 bushels of wheat
2. d) A situation where one country does not engage in trade with other
Explanation:
1 & 2. Autarky refers to a situation where a country does not engage in trade with other countries but rather relies on its own production capacities to feed the consumption in the country.
Autarkies in the current world are not a thing because countries trade with each other. Even North Korea trades with Russia, China and others.
In an Autarky situation therefore, the United States would only be able to consume the wheat that it produces itself which according to the question is 1,000 bushels of wheat.
Answer:
Consumer Surplus = $1.50
Explanation:
Consumer surplus is the difference between what a consumer is willing to pay for a given amount of goods or services and what he ends up paying.
Therefore,
Consumer surplus = Amount consumer is willing to pay less amount paid
Given that
Elvis is willing to pay 5 + 4 + 4.50 = 13.50 for three
Price of 3 sandwich = 3 × 4 = 12
Consumer surplus = 13.50 - 12
= $1.50
Answer:
$936.33 Million
Explanation:
Current sales = $525 millions
Growth rate = 7.5%
Number of years = 10 years
Sales after 8 year = Current sales x ![(1+g)^{n}](https://tex.z-dn.net/?f=%281%2Bg%29%5E%7Bn%7D)
Sales after 8 year = $ 525 million x ![(1+7.5/100)^{8}](https://tex.z-dn.net/?f=%281%2B7.5%2F100%29%5E%7B8%7D)
Sales after 8 year = $ 525 million x ![(1+0.075)^{8}](https://tex.z-dn.net/?f=%281%2B0.075%29%5E%7B8%7D)
Sales after 8 year = $ 525 million x ![(1.075)^{8}](https://tex.z-dn.net/?f=%281.075%29%5E%7B8%7D)
Sales after 8 year = $ 525 million x 1.783477826
Sales after 8 year = $ 936.33 million