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timofeeve [1]
3 years ago
11

Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes.

Laura sells 20 wedding cakes per month. Her monthly total revenue is $5,000. The marginal cost of making a wedding cake is $300. In order to maximize profits, Laura should
a. make more than 20 wedding cakes per month.
b. make fewer than 20 wedding cakes per month.
c. continue to make 20 wedding cakes per month.
d. We do not have enough information to answer the question.
Business
1 answer:
mars1129 [50]3 years ago
5 0

Answer:

The correct answer is the letter a. "Make more than 20 wedding cakes a month."

Explanation:

To maximize profit the marginal price of each cake must equal the marginal cost of each cake. The marginal cost is 300 and the marginal price is 5000/20 = 250. The marginal price of each cake (250) is less than the marginal cost of each cake (300), so Laura needs to make more than 20 cakes to increase her revenue and maximize her profit.

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Why might someone choose to diversify their investments?
Feliz [49]

Answer:

When you diversify your investments, you reduce the amount of risk you're exposed to in order to maximize your returns. Although there are certain risks you can't avoid, such as systemic risks, you can hedge against unsystematic risks like business or financial risks.

7 0
3 years ago
Navy core values, though fundamental to Naval operations, are overlooked in a TCRM situation. A ) True B ) False
pshichka [43]

Answer:

The correct answer is B) False.

Explanation:

The values of the army must always be taken into account, because they are the fundamental pillar of the institution. Any task or function that is performed in it, must be in accordance with those values, since otherwise it would be going in reverse to its missionary task.

7 0
3 years ago
Yasmin listed a house at a 6% commission rate, and it just sold for $463,500. Her brokerage and the buyer’s agent’s brokerage sp
AVprozaik [17]

Answer:

$8,343

Explanation:

Calculation to determine How much did Yasmin earn from this transaction

First step to calculate the Total commission from sale

Total commission from sale= ($463,500 × 0.06)

Total commission from sale=$27,810

Second step is to calculate Yasmin's firm's share

Yasmin's firm's share= ($27,810 ÷ 2)

Yasmin's firm's share=$13,905

Now let calculate How much did Yasmin earn from this transaction

Yasmin's Earning = ($13,905 × 0.60)

Yasmin's Earning=$8,343

Therefore the amount that Yasmin earn from this transaction is $8,343

6 0
3 years ago
a. Suppose the marginal propensity to consume (MPC) for a nation is 0.67. What is the tax multiplier for this nation
algol [13]

Assuming the marginal propensity to consume (MPC) for a nation is 0.67. The tax multiplier for this nation is: 2.03.

<h3>Tax multiplier</h3>

Using this formula

Tax multiplier=-MPC/1-MPC

Where:

Marginal propensity to consume (MPC)=0.67

Let plug in the formula

Tax multiplier=0.67/1-0.67

Tax multiplier=0.67/0.33

Tax muitiplier=2.03

Inconclusion the tax multiplier for this nation is: 2.03.

Learn more about  tax multiplier here:brainly.com/question/16965373

7 0
2 years ago
A stock has had the following year-end prices and dividends:Year Price Dividend1 $ 64.73 â 2 71.60 $ .68 3 77.40 .73 4 63.67 .79
balandron [24]

Answer:

Arithmetic average return = 7.23%

Geometric average return=6.44%

Explanation:

Calculation for the Arithmetic average return

First step is to calculate the return for each year

Using this formula

Return=(Current year price amount-Previous price amount + Current year dividend)/ Previous year price amount ×100

Let plug in the formula

Year 1 Return= ($71.60-$64.73 + $.68) / $64.73

Year 1 Return=$7.55/$64.73

Year 1 Return= 11.66%

Year 2 Return= ($77.40-$71.60 + $.73) / $71.60

Year 2 Return=$6.53=$71.60

Year 2 Return = 9.12%

Year 3 Return= ($63.67-$77.40 +$ .79) / $77.40 Year 3 Return=$-12.94/$77.40

Year 3 Return=-16.72%

Year 4 Return= ($73.91-$63.67 +$ .88) / $63.67

Year 4 Return=$11.12/$63.67

Year 4 Return = 17.47%

Year 5 Return= ($83.75-$73.91 + $.95) / $73.91 Year 5 Return=$10.79/$73.91

Year 5 Return= 14.60%

The second step is to calculate the arithmetic average return

Using the formula

Arithmetic average return = (Addition of the each year return percentage /Numbers of years)

Let plug in the formula

Arithmetic average return (.1166 + .0912-.1672 + .1747 + .1460) / 5

Arithmetic average return =0.3613/5

Arithmetic average return = .0723 ×100

Arithmetic average return = 7.23%

Calculation for the geometric average return

Using this formula

Geometric average return=(1+Each year return percentage)^1/Numbers of years-1)

Let plug in the formula

Geometric average return== [(1 + .1166)×(1 + .0912)×(1-.1672)×(1 + .1747)×(1 + .1460)]^1/5-1

Geometric average return=[(1.1166)×(1.0912)(0.8328)×(1.1747)×(1.146)]^1/5-1

Geometric average return=(1.366011)^1/5-1

Geometric average return=1.0644

Geometric average return=1.0644-1

Geometric average return=0.0644

Geometric average return=0.0644 ×100

Geometric average return=6.44%

Therefore the Arithmetic average return is 7.23% while Geometric average return is 6.44%.

3 0
3 years ago
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