Answer: $60
Explanation:
The optimal price for a monopoly firm is expressed by;
Price = Marginal Cost * ( Own Price Elasticity/ (1 + Own Price Elasticity))
Price = 10 * ( -1.2 /( 1 - 1.2)
Price = 10 * (-1.2/-0.2)
Price = 10 * 6
Price = $60
Answer: Total variable costs at a level of 260,000 units would be $1,74,460.
Explanation:
Total cost at 140,000 units = $249,000 and
Fixed cost = $195,000
Number of units = 140,000
∴ Total variable cost at 140,000 = Total cost - Total fixed cost
= 249000 - 195000
= $94000
Variable cost per unit = 
= 
= $0.671 per unit
Hence,
Total variable costs at a level of 260,000 units would be = Variable cost per unit × Number of units
= 0.671 × 260,000
= $1,74,460
Answer:
hi your question lacks the required options here is the complete question and options
You are a manager for a monopolistically competitive firm. From experience, the profit-maximizing level of output of your firm is 100 units. However, it is expected that prices of other close substitutes will fall in the near future. How should you adjust your level of production in response to this change
a. Produce less than 100 units
b. Insufficient information to decide
c. Produce 100 units
d. Produce more than 100 units
Answer : Produce less than 100 units
Explanation:
A monopolistic firm is a firm that has the sole responsibility or sole ownership of the right of production of certain goods and services. and such products are profit maximizing products because the demand for the products determines the price in the market and also the products are produced at marginal cost equaling its marginal revenue.
From experience when the prices of the close substitutes of the product fall the demand for the product will decrease hence its market price will fall therefore it is wise to produce less than the usual 100 units to still maximize profit.
A revenue tariff is a tax applied to increase the revenue(money brought in) of an economy. Usually occurs in business. For example, oil that is imported or exported from the US is a revenue tariff.
Answer:
b. $600,000
Explanation:
The company has to record as revenue the product at the list price, then if exist a special discount on the price list, it must be record as discount applied to products in the Income Statement, separate of Revenue or Gross Sales.
The price that the company ACH pay by the product ($650,000) it's not at change on the price if not due to the payments term which is one year later, so the company ACH has to pay a financial cost because the payment will be made one year later.
