All categories

1 year ago

When a company owner practices price discrimination, the marginal revenue of an extra unit sold.

1 answer:

5 0

When a business owner uses price discrimination, the marginal revenue curve and the market demand curve are in line, therefore the marginal revenue is the same as the product's price.

The additional money made by selling one more unit of output is known as marginal revenue. The law of diminishing returns eventually leads marginal revenue to start dropping as output level grows, even though it can stay constant at a certain level of output.

The incremental cost or profit made when producing the following item is referred to as marginal. While marginal cost is the additional expense for producing one extra unit, marginal product is the increased revenue.

To know more about marginal revenue

brainly.com/question/29576816

#SPJ4

You might be interested in

Assume that we are in the MM world. The beta of an all-equity firm is 1.4. Suppose the firm changes its capital structure to 40

balu736 [363]

Answer:

2.3

Explanation:

Levered Beta = Unlevered Beta x (1+D/E)

D/E = Debt-to-Equity Ratio

1.4 x (1 + 04 / 0.6) = 1.4 x 1.667 = 2.3

8 0

3 years ago

The Atlantic Company sells a product for $150 per unit. The variable cost is $60 per unit, and fixed costs are $270,000. What is

avanturin [10]

Answer:

The break even units are 3000 units and when it desires the profit of $36000 then sales unit is 3400 units.

Explanation:

The selling price of a product (SP) = $150 per unit.

Variable cost (VC) = $60 per unit.

Fixed cost of the company = $270000

Break-even units can be calculated by dividing the fixed cost from the difference in selling price and variable cost.

Break even Units = (fixed cost) / ( SP – VC)

= 270000 / (150-60)

= 3000 units.

Break-even units when a company desires a profit of $36000.

Desired units for sales = (Fixed Cost + Profit)/ Contribution per unit

= (270,000 + 36,000) / (150 - 60)

= 3,400 units

7 0

3 years ago

Marielle Machinery Works forecasts the following cash flows on a project under consid- eration. It uses the internal rate of ret

ivann1987 [24]

Answer:

a. Project’s IRR is 18.28%

b. Project should be accepted and pursued because it IRR is higher than the required rate of return.

Explanation:

Cash flows are missing a similar question is attached and followoing answer is made accordingly.

Year 0 1 2 3 NPV

Cash flows -$10,000 $0 $7,500 $8,500

PV @ 10% -$10,000 $0 $6,198 $6,386 = $2,584

PV @5% -$10,000 $0 $6,802 $7,342 = $4,144

IRR = 0.05 + ( 4,144 / (4,144-2,584)) x (0.1-0.05) = 18.28%

7 0

3 years ago

Firms or agencies that buy goods and services for their own use or for resale are known as? enterprise customers. ultimate consu

Varvara68 [4.7K]

Answer:organization buyers

Explanation:

3 0

1 year ago

Diamond Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $59 per unit. The

Gemiola [76]

Answer:

<u>Part(a) Differential analysis as at February 24</u>

Make (Alternative 1) :

Direct Materials $35.00

Direct labor $18.00

Variable Overheads $2.70

Fixed Overheads $0.00

Total Make Costs $55.70

Buy (Alternative 2) :

Total Purchase Cost $59.00

<u>(b) On the basis of the data presented, would it be advisable to make the carrying cases or continue buying them? </u>

It is clear that from comparison of the cost of Purchase and the Cost of Making the Carrying Cases, the Cost of Making the Carrying Cases is lower than the Cost of Purchasing the Cases by $3.30

It is thus advisable to make carrying cases instead of buying them

Explanation:

Total Make Costs;

The Factory fixed overheads are irrelevant to this decision hence they were ignored in the make cost calculations.

5 0

2 years ago