Answer:
Option C. 30,000 decrease
Explanation:
At the moment Product G is covering its own variable cost which is 180,000 from its sale figure of 210,000. So there is a balance of 30,000 which product G is contributing to offset the Fixed costs of the company.
It will be inadvisable for management to discontinue the production of Product G because it appears to be making a loss. The loss is as a result of the fixed cost of 50,000 imposed (apportioned) to the product. So product G can only cover 30,000 out of this 50,000 which is resulting in the 20,000 loss.
If the product is discontinued, the 30,000 contribution of product G will be lost which will lead to a decrease in profit of that amount.
Answer:
This firm should hire less of C and more of D
Explanation:
Based on the information given we were told that the price of resource C is the amount of $90 while the price of resource D is the amount of $35 ,Therefore based on this it will be advisable for the firm to hire less of C and More of D because the price of resource is C is more higher than the price of resource D when compared, which means that the price of resource D is the best option or alternative for the firm to go for.
The total value created in this exchange is $38.
<h3>What is the total value created?</h3>
The total value created is the sum of the consumer surplus and the producer surplus.
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
$80 - $46 = $34
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
$46 - $42 = $4
Total surplus = consumer surplus + produce surplus
$4 + $34 = $38
To learn more about consumer surplus, please check: brainly.com/question/25816093
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