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1 year ago

Suppose there is a simultaneous increase in demand and decrease in supply, what effect will this have on the equilibrium price?

1 answer:

5 0

Although the impact on the equilibrium quantity cannot be determined, a rise in demand and a decrease in supply will result in an increase in the equilibrium price. 1. Consumers now place a higher value on goods, and producers must charge a higher price to offer the goods; as a result, prices will rise for all quantities.

If demand increases at the same time as supply increases, as is the case in the scenario depicted, the new equilibrium price will be greater than the initial equilibrium price.

We therefore know that an increase in supply decreases equilibrium price and increases quantity, while a rise in supply increases equilibrium price and decreases quantity (and vice versa) (and vice versa).

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What’s going on here? As soon as Dewey Cheatum and Howe Motors increase the prices on their SUVs, then so does their only compet

IceJOKER [234]

Answer: The answer is oligopolistic competition

Explanation:

Price can be defined as the amount of money for which a goods or services is been offered for sale by the sellers of the goods. It is a sum of money at which the seller and the buyer agrees to exchange a goods or services. The price of a product or services usually shows the cost of the product and the quality of a product or services been offered for sale by the sellers. When a business set a price for their products or services they usually takes into consideration factors such as survival, profit maximization, return on their investment, market share, and the business prestige.

The strategy of setting the same price with your competitors is called oligopolistic competition. In this case, if one competitor wants to be ahead of other competitors in the market, then such a competitor has to include in their product features that will not be found in the product of their competitors, through this process such a competitor would be ahead of their competitors in the market by having the larger share of the market.

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2 years ago

What mechanism will you putin place if your new hire is under performing, e.G, on -line job trainingg

miskamm [114]

Answer:

Job training

Explanation:

Job training is an important procedure for an employee to understand the work and their job profile. Providing job training helps to develop the career profile of an employee and also the prospective growth of the organization.

When some one in the organization performance is lower or if he or she is under performing, then the best way to increase the productivity of the employee is to provide a job training so that the employee learns and practices the work culture and work effectively for the individual growth as well as the organizational growth.

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2 years ago

Suppose your firm has a marginal revenue given by the equation MR = 10 - Q where Q is the quantity produced and sold. This means

KonstantinChe [14]

Answer:

The answer is: A) When the marginal cost of producing an additional unit equals the marginal revenue from that unit.

Explanation:

In economics, we assume that a company´s main goal is to maximize its profit. In order for any company do to this, the marginal cost (MC) of producing an extra unit of production must equal the marginal revenue (MR) obtained by selling that extra unit of production.

Theoretically, in perfect market conditions, MR=MC in the equilibrium point between quantity supplied and quantity demanded. But on real world conditions elasticity of both demand and supply alter the curves.

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2 years ago

Scenario 14-4 The information below applies to a competitive firm that sells its output for $40 per unit.

Dominik [7]

The average revenue has the same value at Q = 150 and Q = 151.

Further explanation:

Average fixed cost: The fixed cost per unit is termed as the average fixed cost. The fixed cost does not change with the level of output. However, the average fixed cost changes along with the level of output.

Total revenue: The total revenue refers to the amount of revenue generated during a particular period of time. The total revenue is the total of the revenues.

Total cost: The total cost is the sum total of the variable and fixed cost during the year. The total cost represents all the direct, and indirect costs occurred on a product.

Average total cost: The total cost per unit is also termed as the average total cost. The average total cost represents the cost, which is computed by dividing the total cost with the number of units manufactured during the year.

Calculate the total revenue when the quantity of output is 150 units:

It is given that the output is sold at $40 per unit.

$\text{Total revenue at 150 units}=\text{Number of units produced}\times\text{Sales price per unit}\\ =150\times\$40\\=\$6,000$

Therefore, the total revenue when the quantity of output is 150 units is $6,000.

Calculate the average revenue when the quantity of output is 150 units:

$\text{Average revenue}=\dfrac{\text{Total Revenue}}{\text{Number of units}}\\=\dfrac{\$6,000}{150\text{units}}\\=\$40$

Therefore, the average revenue when the quantity of output is 150 units is $40.

Calculate the total revenue when the quantity of output is 151 units:

It is given that the output is sold at $40 per unit.

$\text{Total revenue at 151 units}=\text{Number of units produced}\times\text{Sales price per unit}\\ =151\times\$40\\=\$6,040$

Therefore, the total revenue when the quantity of output is 151 units is $6,040.

Calculate the average revenue when the quantity of output is 151 units:

$\text{Average revenue}=\dfrac{\text{Total Revenue}}{\text{Number of units}}\\=\dfrac{\$6,040}{151\text{units}}\\=\$40$

Therefore, the average revenue when the quantity of output is 151 units is $40.

Justification for correct and incorrect answer:

Average fixed cost: The average fixed cost changes along with the change in output level. The average fixed cost is different from that of fixed cost. Hence, this choice is incorrect.

Average revenue: The average revenue is $40 at Q = 150 units and Q = 151 units. The average revenue is equal at both the levels of the output. Hence, this choice is correct.

Total cost: The total cost is not the same at both the levels of the output. The total cost is different for Q = 150 units, and Q = 151 units as the average total cost is also different for both output levels. The total cost increases when the output level changes. Hence, this option is incorrect.

Learn more

1. Breakeven point and contribution margin brainly.com/question/12989446

2. Direct materials efficiency variance brainly.com/question/12987884

3. Cost of materials

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Answer details

Grade: Senior School

Subject: Cost Accounting

Chapter: Cost Behavior

Keywords: Scenario 14-4, the information below applies to, competitive firm, scenario 14-4 the information below applies to competitive firm, when the firm produces, which of the following magnitudes, average fixed cost, average revenue, average cost per unit, average total cost, at Q = 150 and Q = 151, represent the quantity of output, refer to scenario 14-4, when the firm produces and sells 150 units of output.

6 0

2 years ago

Read 2 more answers

Variable Costing Income Statement for a Service Company The actual and planned data for Underwater University for the Fall term

Mkey [24]

Answer:

Underwater University Variable Costing Income Statement For the Fall Term:

Actual Planned Variance

Number of Enrollment 4,500 4,125 375

Credit hours 60,450 43,200 17,250

Revenue $7,254,000 $5,832,000 $1,422,000

Variable costs:

Registration, records,

& marketing costs $1, 237,500 $1,134,375 $103,125

Instructional costs 3,868,800 2,592,000 1,276,800

Total variable costs $5,106,300 $3,726,375 $1,379,925

Contribution margin $2,147,700 $2,105,625 $42,075

Depreciation on classrooms

& equipment $825,600 $825,600 $0

Operating income $1,322,100 $1,280,025 $42,075

Explanation:

Variable costing income statement is an income statement which shows the contribution that revenue makes in paying for the fixed costs, before arriving at the Operating Income. In variable costing, there is a separation of variable costs from periodic or fixed costs. All direct materials, labor, and variable overheads are charged to the variable costs, while fixed costs are expensed to the period for which they are incurred.

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2 years ago