<span>a. P | Q | TR | MR | TC | pi
24 10,000 240,00 -- 50,000 190,000
22 20,000 440,000 20 100,000 340,000
20 30,000 600,000 16 150,000 450,000
18 40,000 720,000 12 200,000 520,000
16 50,000 800,000 8 250,000 550,000
14 60,000 840,000 4 300,000 540,000
b.Profits are maximized at a price of $16 and quantity of 50,000. At that point
profit is $550,000.
c. As Johnny's agent, you should recommend that he demand $550,000 from
them, so he instead of the record company receives all of the profit.</span>
The answer & explanation for this question is given in the attachment below.
Answer:
$ 701,000
Explanation:
Balance At December 31, 2019 = $878,000
$168,000 will be deducted since these are not due to be received until January 2nd as well as $9,000 will also be deducted
$878,000 - $168,000 - $9,000 = $ 701,000
Answer:
cost of equity = 13.36 %
Explanation:
given data
earn = $3.50
ratio = 65%
growth rate = 6.0%
common stock currently sells = $32.50
flotation cost = 5%
to find out
cost of equity from new common stock
solution
we get here cost of equity from new common stock that is express as
cost of equity =
+ g ...................1
here D1 is expected dividend and Po is current price and g is growth rate and f is flotation cost and
D1 = 3.50 × 0.65
so from equation 1 we get
cost of equity =
+ 6%
cost of equity = 0.1336
cost of equity = 13.36 %
If a production quota is set lower than the equilibrium quantity, at the quota quantity, the marginal benefit is greater marginal cost and the quantity produced is allocative greater.
If marginal benefit exceeds marginal cost, resources use will be more efficient if the quantity is increased. If marginal cost exceeds marginal benefit, resource use will be more efficiently if the quantity is increased.
Allocative efficiency occurs where the collective sum of consumer and producer surplus is at a maximum. When the marginal benefits exceed the marginal costs of producing a product, then allocative efficiency is not achieved in the market.
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