Answer:
units of output = 2 units
fixed cost = 8
Explanation:
given data
SMC = 2 + 4Q
AVC = 2 + 2Q
to find out
how many units of output will it produce at a market price and what level of fixed cost will this firm earn zero economic profit
solution
we know here that under perfect competition
so at the equilibrium here Price (P) will be = MC
P = MC = 10
and
SMC = 2 + 4Q ,
P = 2 + 4Q
10 = 2 + 4Q
Q = 2 units
and
at zero economic profit we get
TR = TC
TR = P × Q
TR = 10 × 2
TR = 20
so
TC = TFC + TVC
20 = TFC + 12
TFC = 8
because here [ TVC = AVC × Q ]
[ TVC = (2 + 2 × 2) × 2 ]
[ TVC = 12 ]
Entrepreneur is a person who is willing to bear risks to gain profits.
1) risk bearing
2) innovative
3) personality
Answer:
The answer is bait and switch pricing.
Explanation:
Bait and switch pricing is a form of deceptive pricing that describes the practice whereby customers are lured into a store by offers or claims about the existence of a quality or low priced item which turns out to be unavailable.
The retail store then tries to sell or persuade the customer to buy a similar item at a higher price. This kind of pricing is widely considered as a fraudulent form of retail sales and most countries have laws against it.
Answer:
Cumulative cash flow - $420
Net cash flow
Jan = $100
Feb= $150
Mar= $90
Apri -$55
May = $25
June -0
Explanation:
Jan - Feb - Mar - Apr - May - June
sale receipt 300 350 300 350 400 300
Disbursement (200) (200) (210) (295) (375) (300)
Net cash flow 100 150 90 55 25 0
Cumulative balance = $420
