When a monopolist's level of output is not at the minimum point of <u>average total cost</u>, this means it will not be productively efficient.
<h3>What is an
average total cost?</h3>
An average total cost refers to a cost derived from total fixed and variable costs divided by total units produced.
In conclusion, this cost is used to evaluate how the total per-unit cost change as a result of output
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Answer:
Book value per share: 48.88
Explanation:
The book value per share is the minimun value of the company equity.
Book value per share = (Total Equity - Preferd Equity) / Total shares outstanding
Book value per share = 2,200,000 / 45,000
Book value per share = 48.88
In the numerator, we do not deduct anything from equity because there are no preferred shares. In the dividend, the outstanding shares are 45,000, because 50,000 have been issued and 5,000 are held in treasury, despite being authorized to issue 100,000 shares.
Answer:
$50,000
Explanation:
The computation of the interest expense for deduction is shown below:
= Interest on a mortgage on his home + Interest on a mortgage on his vacation home
= $40,000 + $10,000
= $50,000
All other information which is given in the question is not relevant for the computation part. Hence, ignored it
We simply add both types of interest related to a mortgage on the home
Answer:
$3,762
Explanation:
The computation is as seen below
Total cost when the production is 9,900 units
Direct materials $8,316
Direct labor $11,187
Variable overhead $12,474
Total $31,977
But,
Their new cost on supplier offer is
= $2.85 × 9,900 units
= $28,215
In the case when the order is accepted, the net income would increase by
= $31,977 - $28,215
= $3,762
Answer:
This is a recessionary gap of $60 billion.
Simple multiplier = 1/ (1-.75) = 1/.25 = 4
The government would then have to increase its spending on goods and merchandise by total gap divided my simple multiplier.
$60 billion/ 4 = $15 billionTransfer multiplier - Each dollar of a Transfer payment will increase real GDP by Transfer Payment Multiplier
= MPC / (1-MPC) = 0.75 / (1-0.75) = 0.75/0.25 = $3
The government must increase spending on transfer payments by total gap divided by transfer payment multiplier = $60 billion / $3 = $20 billion
