The price elasticity of baseball bats is −0.77, this indicates that the demand for bats tends to inelasticity. Therefore, if the manager wants to dispose of his inventory, he would advise you not to lower the price because it would cause a decrease in income. He could raise the price and earn more since being an inelastic demand, the quantity demanded would not be modified as much as the price would change.
False. indirect is not direct .
Answer:
Yes $30 agsinst $19.50
The variable cost for the first 50 untis is $17.50
Yes $30 against $27.25
average variable cost for the first 100 units $26.25
Marginal cost for the first 50 units: 17.50 which is lower than marginal revenue
from 51 units and subsequent untis: 35 which is higher than marginal revenue
It will produce 50 units achieving $525 of profit
Explanation:
$100 fixed cost /50 units + 17.50 = 19.50 average cost
selling price: $30
100 fixed cost + 17.50 x 50 + 35 x 50 = 2725
total cost 2,725 / 100 units = 27.25 unit average cost
selling price $30
($17.50 x 50 + $35 x 50)/100 = 26.25
After the 50untis our profit will decrease as the marginal revenue is lower than marginal cost thus, we stuop production at the 50 units:
50 x 30 - 100 fixed cost - 17.50 x 50 variable cost = 525 profit
Answer:
b. Horizontal merger.
Explanation:
Project Repat is merging with a company that produces similar products to its own markets them in similar markets as well, this is an example of a horizontal merger that results in increased synergies between the similar firms and a greater market share opportunity.
Vertical mergers are usually not in the same industry. They would either be with the suppliers of Project Repat or customers who retail Project Repat's products.
Conglomerate is an example of diversification and usually the merging firms have different operations.
There are no information of clashes of any sort within the two merging companies so it is uncertain whether this is a hostile takeover.
Hope that helps.
First of all, let us calculate the annual gains: they are 80000-60000=20000$. In three years, the profit will be 3*20000=60000$. Hence, the break-even investment would be 60000$. For a year after that, the profit will be 20000$; hence the return on investment would be 20000/60000=33,33% per year. After 6 years, the investment would have yielded a 100% profit (return on investment).
