The term monopoly refer most specifically to

In most high-tech industries, the fixed costs of developing a product are very _____, and the costs of producing one extra unit

topjm [15]

Answer:

Fixed costs are high, variable costs are low

Explanation:

The reason is that the fixed costs are high because these fixed costs are uncontrollable and their might not be an alternative which means we have to move with higher fixed costs. And this is because most of tasks in manufacturing are handled by the machines not humans. So the cost of maintenance, depreciation, etc are fixed costs which are uncontrollable.

Furthermore, the company has very small variable costs because the company enjoys economies of scales, fast paced manufacturing machines, etc. And this is controllable by investments in another more robust machinery.

7 0

3 years ago

Which of the following is INCORRECT about a corrective tax? Select one: a. The tax is equal to the marginal damage from pollutio

eduard

Answer:

The answer is letter "C": Producer surplus and consumer surplus will increase because the market becomes more efficient.

Explanation:

Named after English economist Arthur C. Pigou (1877-1959), the Pigovian Tax or corrective tax is a fine imposed against taxpayers for being part of activities that generate negative side effects. According to Pigou, these externalities play a negative role in the market to reach equilibrium.

It is true that the corrective tax encourages market efficiency but it doesn't imply the tax will lead to producer or consumer surplus, since those are actually influenced by basic supply and demand laws, making option "C" a false statement.

4 0

3 years ago

Milden Company is a merchandiser that plans to sell 25,000 units during the next quarter at a selling price of $52 per unit. The

marta [7]

Answer:

Instructions are listed below

Explanation:

1) A Contribution Margin Income Statement is a special format of the income statement that segregates the variable and fixed expenses involved in running a business. It shows the revenue generated after deducting all variable and fixed expenses separately.

Sales= 25000q*$52= $1300000

Variable costs:

Cost of good sold= $22*25000= 550000

Sales commissions=sales*0,05=65000

Shipping expense= $6*25000= 150000

Total variable cost= $765000

Contribution margin=$535000

Fixed costs:

Advertising expense= $172,000

Shipping expense= $54,000

Administrative salaries= $82,000

Insurance expense= $9,200

Depreciation expense= $52,000

Total fixed cost= $369200

Net profit= $165800

2)The general structure of an income statement proceeds as follow:

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

General and Administrative (G&A) Expenses (-)

=EBITDA

Depreciation & Amortization Expense (-)

=Operating Income or EBIT

Interest (-)

Other Expenses (-)

=EBT (Pre-Tax Income)

Income Taxes (-)

=Net Income

In this exercise:

Revenues= 1300000

COGS= 550000

Gross profit= 750000

Sales commissions=sales*0,05=65000

Shipping expense= $6*25000+54000= 204000

Advertising expense= 172000

Administrative salaries= 82000

Insurance expense= $9200

EBITDA= 532200

Depretiation= 52000

Net profit= $165800

7 0

3 years ago

Misra Inc. forecasts a free cash flow of $ 35 million in Year 3, ie, at t = 3, and it expects FCF to grow at a constant rate of

Ray Of Light [21]

Answer:

the answer for this question is 1289.44

8 0

2 years ago

The agricultural extension agent told the farmer that one more crop-dusting will likely add a ton of additional wheat to the har

Pachacha [2.7K]

Answer:

The marginal benefit is greater than the marginal cost of an additional crop-dusting.

Explanation:

Marginal benefit is the extra utility derived from consuming one more unit or a good or service. Is the maximum amount that a consumer can pay for consuming an additional unit of a product or a service.

The concept of marginal benefit focuses on why consumers are ready to pay a specific amount of money for some goods, but refrain from doing the same for another product.

This concept helps companies ensure that the utility of their products does not diminish.

A marginal cost is the additional cost to produce one more unit. It is high initially and drops as production increases.

In the intersection of marginal benefit and cost, is the point where the marginal revenue is equal to the marginal cost.

If the marginal revenue is bigger than the marginal cost, is convenient.

8 0

3 years ago