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RSB [31]
3 years ago
13

The inverse demand curve for a monopolist changes from P = 100 – 2Q to P = 120 – 2Q, while the marginal cost of production remai

ns unchanged at a constant $20. After the change in the demand curve, the profit-maximizing price rises from _____, and the profit-maximizing output rises from _____. $40 to $60; 20 units to 30 units $60 to $70; 20 units to 25 units $10 to $20; 100 units to 120 units $50 to $60; 10 units to 12 units.
Business
1 answer:
svetoff [14.1K]3 years ago
5 0

Answer:

$60 to $70; 20 units to 25 units

Explanation:

The production point for the monopolist is where the marginal revenue is equal to the marginal cost,

For first demand curve,

P = 100 - 2Q

MR = 100 - 4Q,  the MR curve is double sloped than the demand curve

MC = 20

 Now, Equating Marginal revenue with marginal cost,

100 - 4Q = 20

4Q = 80

Q = 20

P = 100 - (2 × 20)

  = 60

For second demand curve,

P = 120 - 2Q

MR = 120 - 4Q

MC = 20

Now, Equating Marginal revenue with marginal cost,

120 - 4Q = 20

4Q = 100

Q = 25

P = 120 - (2 × 25)

  = 70

So, the quantity increases from 20 units to 25 units and the price increases from $60 to $70.

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Why should firms with promising investment opportunities strive to maintain a conservative capital structure, i.e., limited leve
Crazy boy [7]

Answer:

The answer is to assure funding for future assets.

The answer is because of lack of sufficient operating cash flow.

Explanation:

Companies with promising investments opportunity typically have valuable intangible assets whose value would decline sharply if the company would go into financial difficulty, its important for such company to maintain a financial flexibility that comes with a conservative capital structure to assure funding for future assets.

   Poor cash flow is when the income cash flow is insufficient to meet the outgoing cash flow needs of a business and this can also lead to inability to raise additional equity force.

7 0
3 years ago
Olessa, single and age 60, sells her home for $540,000 after living there for 20 years. Her adjusted basis in that home was $220
Karo-lina-s [1.5K]

Answer:

Net gain = $60,000

Explanation:

Given:

Sale value of house = $540,000

Adjusted value = $220,000

Selling expenses = $10,000

Computation of gross profit on the house:

Gross profit on sale = Sale value of house - Adjusted value - Selling expenses

Gross profit on sale = $540,000 - $220,000 - $10,000

Gross profit on sale = $310,000

Maximum limit on gain from sale of house = $250,000(Form number 1040, Schedule D)

Computation of net gain:

Net gain = $310,000 - $250,000

Net gain = $60,000

7 0
2 years ago
Llywelyn, Inc. reports the following information for​ July: Sales Revenue $ 1 comma 000 comma 000 Variable Costs 200 comma 000 O
trapecia [35]

Answer:

A. $ 420,000

Explanation:

We have to find the missing information

Sales revenues            1,000,000

variable cost              <u>    (200,000)</u>

Contribution Margin       800,000

Fixed Cost                <u>            X         </u>

Operating Income          380,000

Contribution margin - operating income = fixed cost

$800,000 - $380,000 = fixed cost

fixed cost =   $420,000

6 0
3 years ago
When looking to increase the presence of a website, putting together your search engine optimisation plan will help you plan you
weeeeeb [17]

Answer:

Option "D" is the correct answer for the following statement.

Keyword Research

Explanation:

To order to increase the visibility of a website, an online marketing strategy will be created.

A keyword analysis is a method by which you study popular search words that types users into browsers such as Google, and creatively integrates them into your information so that the information ranks higher on a google search results page.

Therefore, Option "D" is the correct answer.

3 0
3 years ago
John Jansen, an employee of Redwood Company, had gross earnings for the month of May of $4,000. FICA taxes are 7.65% of gross ea
Anastasy [175]

Answer:

The net pay for John Jansen is $2894

Explanation:

For calculating the net pay for John Jansen we have to subtract all the FICA taxes and federal income taxes and also state income taxes, with authorized voluntary deductions also being subtracted from the gross earnings .

Given information -          Gross earning                         = $4000

                                         FICA taxes                                = 7.65%

                                         Federal income taxes               = $675

                                         State income taxes                    = 3%

                                       Authorized voluntary deductions = $5

One important to remember here is that FICA taxes and State taxes would be calculated on the gross earnings of John

FICA taxes = 7.65% of $4000

                  = .0765 x $4000

                  = $306

State taxes = 3% of $4000

                   = .03 x $4000

                   = $120

NET PAY = gross earnings - FICA tax - state tax - federal income tax -

                                                         authorized voluntary deduction

   = $4000 - $306 - $120 - $675 - $5

   = $2894

 

7 0
3 years ago
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