Answer: Option (d) is correct.
Explanation:
Correct Option: Marginal revenue equals marginal cost.
Pure monopoly is a market situation in which there is a single firm who are producing the goods and these goods are the close substitute. There is no other firm in the market. So, the monopoly firm is the price setter.
The output level that is produced by the profit maximizing monopoly firm is at a point where marginal revenue is equal to the marginal cost. It is the same profit maximizing condition that a competitive firm also utilize to find their equilibrium level of output.
Answer:
c. the trade balance and the exchange rate.
Explanation:
An Open Economy is an economy that allows the free inflow and outflow of goods, services, capital and people. The opposite of a closed economy.
What sets these two models apart is that in an open economy, both imports and exports are allowed, so that countries necessarily have to trade in more than one currency, so the exchange rate must be examined. In addition, business transactions are recorded in a balance of payments. So these are the two concepts that are not tried in a closed economy analysis, but are introduced in an open economy.
Answer:
The budgeted variable overhead for May is $5,335
The budgeted variable overhead for June is $7,260
The budgeted fixed overhead for both May and June is $11,500 per month
Explanation:
First we have to determine how many tricycles does Becker Bikes expects to manufacture during May and June:
May:
beginning inventory May 180
expected sales May 520
ending inventory May 145
Becker is planning to manufacture 485 tricycles (= 520 + 145 -180)
June:
beginning inventory May 145
expected sales May 650
ending inventory May 155
Becker is planning to manufacture 660 tricycles (= 650 + 155 -145)
The budgeted variable overhead for May = 485 tricycles x $11 per tricycle = $5,335
The budgeted variable overhead for June = 660 tricycles x $11 per tricycle = $7,260
The fixed overhead for both May and June is $11,500 per month
Answer:
$22.50 per unit
Explanation:
Mark -up is the percentage of cost that is earned as profit.
Using mark-up,
Selling price = Total cost + total profit
Total cot = Fixed cost + variable cost
Total costs = $400,000 + (10× 50,000)
= $900,000
Sales revenue = 125%× 900,000
= 1,125,000
Selling price per unit = Sales revenue/units
=1,125,000/50,000
= $22.50 per unit