Answer:
Output = 5
Explanation:
As per the data given in the question,
Output per firm :
Marginal cost = Average total cost
MC = ATC (Since in long run each type of firm is earning zero economic profit)
(49 + q^2) ÷ q = 2q
49 + q^2 = 2q^2
49 = q^2
q = 7
Average total cost = (49 + 49) ÷ 7
= 98 ÷ 7
= 14
Hence, Price = min ATC = MR = 14
Market quantity (Q)
= 49 - 14
= 35
Number of firms
= Total quantity ÷ Output per firm
= 35 ÷ 7
= 5
Your answer is from interest
Answer:
Increasing the sales price is a bad idea since total revenues will decrease.
Explanation:
The question is incomplete since we are not given the information about other costs, but we are given enough information to calculate the price elasticity of demand:
PED = % change in quantity demanded / % change in price = -12% / 7.5% = -1.6 or |1.6| in absolute terms.
Since the PED is |1.6|, it is price elastic. This means that a change in price will result in a proportionally larger change in quantity demanded. E.g. assume original price is $100 and the original quantity demanded is 100. Total revenue = $10,000. If the price increases to $107.50, the quantity demanded will decrease to 88, resulting in a total revenue of $9,460.
Answer:
$185,400
Explanation:
Price of next best alternative = $150,000
Expected crash system saving:
= (Probability of crash × cost of a system crash) - (Probability of machine will crash × cost of a system crash)
= [(15% × 500,000) - (5% × 500,000)]
= $75,000 - $25,000
= $50,000
Added operating cost true economic value:
= (Number of hours in 365 days × machine cost per hour) - (Number of hours in 365 days × Next best alternative cost per hour)
= [(2,920 × $20/hr) - (2,920 × $15/hr)]
= $58,400 - $43,800
= $14,600
True economic value (TEV) of the machine:
= Price of next best alternative + Expected crash system saving - Added operating cost true economic value
= $150,000 + $50,000 - $14,600
= $185,400
Answer:
A-she can deduct her mileage for driving from her home to her office at the professional suite
B-she can deduct her home office expenses
Explanation:
As a general rule of thumb, every expenses that incurred for business operation can be deducted from your taxes. This rule can still applicable even if you're working from your home.
A car mileage <u>can only be deducted according to the proportion that is used for work</u><u> </u> since it's considered as an expense that must incurred in order for Gwen to do her business.
Lunch money is considered as private consumption that does not related to her business operation. This is why it's not tax deducible.
