Answer:
False.
Explanation:
(1) Units produced = 24 units of output
At the 24th unit of output,
Marginal revenue = $5
Marginal cost = $4
MR ≠ MC
At the 25th unit of output,
Marginal revenue = $4.50
Marginal cost = $4.50
MR = MC
At the 26th unit of output,
Marginal revenue = $4
Marginal cost = $5
MR ≠ MC
A firm maximizes its profit at a point where the marginal revenue is equal to the marginal cost i.e. MR = MC.
It is clear from the above scenario that this firm doesn't stop at 24 units of output because at this point of production profit maximizing condition is not fulfilled which means MR ≠ MC.
This firm should stopped at 25 units of output where marginal revenue is equal to the marginal cost from the 25th unit of output.
Answer:
The correct answer is b) American will leave fares unchanged and Southwest will leave fares unchanged.
Explanation:
The Nash Balance is a situation where individuals or players have no incentive to change their strategy taking into account the strategy of their opponents.
In the Nash equilibrium, the strategy chosen by each participant of a conflict or game is optimal, given the strategy chosen by the others. In other words, nobody will gain anything if they decide to change their strategy under the assumption that the other individuals do not change theirs.
It should be noted that under the Nash equilibrium the greatest gain is not necessarily obtained for all individuals or players as a whole. It is only true that each responds optimally to the strategy of others. In many cases, individuals would like to be able to reach another balance with higher profits but fail to do so because they face the risk of being betrayed.
Answer:
Critique of advertising.
Explanation:
Advertising is a marketing strategy used by organizations or individuals to convince or persuade a consumer to buy their products.
It is used to promote goods and services using a multimedia channel such as television, radio, billboards etc.
Critique of advertising postulates that adverts usually urge or prompt consumers to buy products even when they don't need it.
Answer:
B) False
Explanation:
CAPM formula for a stock's expected rate of return is as follows;
CAPM r = risk free rate + beta (rM - risk free rate)
r = expected return
rM = market return
As is seen in the above formula, the return is determined by the beta of the stock, risk free rate and the market return. If the beta of the stock increases assuming the market return and the risk-free rate remain constant, the stock's return will also increase and vice versa.
Answer:
Gain= $63,000
Explanation:
<u>First, we need to calculate the book value:</u>
<u></u>
Book value= purchase price - accumulated depreciation
Book value= 250,000 - 35,000
Book value= 215,000
<u>Now, the gain or loss from the sale:</u>
Gain/loss= selling price - book value - selling expense
Gain/loss= 290,000 - 215,000 - 12,000
Gain= $63,000
