If supply is price-inelastic and demand is price-elastic, then the firm can earn positive profits by increasing the price.

Assume that an economy produces only two goods, pizza and wings. Place the events in order, to show how an improvement in pizza-

marysya [2.9K]

The population of the animals would decrease but more chicken wings and pizza would be everywhere which is great Bc who doesn’t like pizza and chicken wings

4 0

3 years ago

Read 2 more answers

Hoffman, Inc. adjusts its books each month but closes its books at the end of the year. The trial balance at March 31 before adj

xenn [34]

Answer:

d. A credit to Prepaid Insurance for $680.

Explanation:

The computation of the prepaid insurance is shown below:

Given that

Four month prepaid insurance = $2,720

For one month, the prepaid insurance is

= $2,720 ÷ 4 months

= $680

Since we have to record the prepaid expenses for 1 month, we divided the total prepaid insurance by the 4 months due to that it decreases by $680 and that's why we credited this account

8 0

3 years ago

Assume the lunch plate industry in Oahu, a perfectly competitive industry, is in long-run equilibrium with a market price of $5.

Wewaii [24]

Answer:

Explanation:

The lunch plate industry in Oahu is a perfectly competitive industry.

This industry is also a decreasing cost industry. A decreasing cost industry can be defined as the type of industry where an increase in the number of firms in the industry causes the average production cost to decline.

The industry is currently in long-run equilibrium and has the price level at $5.

As the demand increases, the price level will initially increase. But this increase in the price will cause the profits to increase and thus attract potential firms to join the market.

As the number of firms increases the average cost of production will decrease. As a result, the supply in the market will increase more than the demand.

So the long-run equilibrium will be reestablished at a lower price than earlier.

7 0

3 years ago

Howard Weiss, Inc,. is considering building a sensitive new radiation scanning device. His managers believe that there is a prob

SpyIntel [72]

Answer:

Consider the following information

Probability of ATR coming up with a competitive product is 0.35

If ATR does not come up with a competitive product and H adds an assembly line, the profit is $60,000

If it adds an assembly line and ATR adds the product, the profit is $20,000

If H adds a new assembly but ATR does not come up with a competitive product, the profit is $600,000

If ATR does not enter the market, the loss for H is $120,000

A) Expected value for the add assembly line option:

The company would get a profit of $60,000 if ATR does not come up with a competitive product. If ATR comes up with a competitive product and H adds an assembly line, the profit is $20,000.

Probability of not coming up with a product is 0.65 (1-0.35)

Calculate the value if it does not come up with a new product line and H adds an assembly line as follows:

Value if it does not come up with a new product = 0.65 x $60,000

= $39,000

Calculate the value if it comes up with a new product line and H adds an assembly line as follows:

Value if it does come up with a new product = 0.35 x $20, 000 = $7,000

Calculate the expected value as follows:

Expected value = S39000 + $7000

Expected value =$46,000

Expected value for build new plant option:

If H adds a new assembly but ATR does not come up with a competitive product, the profit is $600,000

If ATR does not enter the market, the loss for H is $120,000

Calculate the value if H adds a new assembly but ATR does not come up with a competitive product as follows:

Value if it does not come up with a new product = 0.65 x $600000

= $390, 000

Calculate the value if ATR does not enter the market:

Value if it does not compete in market = 0.35 x -$120000 = -$42, 000

Calculate the expected value as follows:

Expected value= $390,000 - $42,000

Expected value =$348,000

The expected value of building a plant is more than the expected value of adding product line. Therefore, the best alternative is to build the plant.

B) Calculation of expected value of perfect information (EVPI):

EVPI = 0.65 x $600,000 + 0.35 x $120,000

EVPI = $390,000 + $42,000

EVPI =$432,000

Calculation of value of return:

Value of return = Value of perfect information - Maximum EMV

Value of return =$432,000 - 348,000

Value of return =$84,000

4 0

4 years ago

Denise works in the quality control section of a large shipping company. In this capacity, she monitors and reports on how well

Vladimir [108]

Answer:

Feedback loops

Explanation:

In the given situation since it is mentioned that denise who works in the quality control section and she monitors and reports how well or how poor the system operates so here she provide the feedback loops to the organization as it deals with the event that varies from the response

So according to the given situation, the feedback loops is the answer

8 0

3 years ago