Answer: b. Marginal revenue is less than average revenue
Explanation:
Marginal revenue is the extra revenue received by selling one more unit of a good while Average revenue is the revenue generated on average by all units sold thus far.
If the monopolist has to reduce prices to sell more goods then it would mean that for every unit sold, the price would have reduced compared to the price of the last unit which translates to less revenue coming in per unit compared to the last unit.
On the other hand, on average, the higher prices of the earlier goods sold would keep the average revenue higher than the additional revenue (marginal revenue).
Answer:
Early adopters
Explanation:
Early adopters define to adopt a new product or technology introduced in the market place for the first customers or the new customers
Here the product or technology is the first time introduced in the market with a lot of expectations which could be in terms of sales, revenues, trust, satisfaction, etc
Therefore in the given situation, the early adopters should be chosen for the new developments in the products category
Answer:
Adjusted accounting profit - $63,200
Cash inflow / Outflow - $63,200
Depreciation Tax shield - $63,200
Explanation:
Revenue - $188,000
Variable cost ($57,000)
Contribution $131,000
Rental cost ($37,000)
Depreciation (17,000)
($54,000)
PBIT 77,000
Income Tax (40%) (30,800)
Net Income 46,200
A) Adjusted Accounting profit
Add back non cash expenses (depreciation) = 46,200+$17000 =$63,200
B)Cash Inflow/Outflow
Revenue $188,000
Variable cost (57,000)
Rental cost (37000)
Income Tax (30,800)
$63,200
C Depreciation Tax Shield
Tax shield =40%*17,000= $6800
Cash income from operation (EBITDA*(1-tax rate) = 56,400
Add back $6,800 = 6,800
$63,200
Answer:
In the fourth quarter only.
When the loss is probable and estimable, the expected loss must be recorded in full. This loss becomes such at the end of the fourth quarter. Therefore, the inventory must be valued on the year-end at the lower of cost or market, recognizing the loss at that time.
Explanation:
