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Leni [432]
4 years ago
12

You are the manager of BlackSpot Computers, which competes directly with Condensed Computers to sell high-powered computers to b

usinesses. From the two businesses’ perspectives, the two products are indistinguishable. The large investment required to build production facilities prohibits other firms from entering this market, and existing output firms operate under the assumption that the rival will hold constant. The inverse market demand for computes is P=5,900 – Q, and both firms produce at a marginal cost of $800 per computer. Currently, BlackSpot earns revenues of $4.25 million and profits (net of investment, R&D, and other fixed costs) of $890,000. The engineering department at BlackSpot has been steadily working on developing an assembly method that would dramatically reduce the marginal cost of producing these high powered computers and has fond a process that allows it to manufacture each computer at a marginal cost of $500. How will this technological advance impact your production and pricing plans? How will it impact Blackspot’s bottom line?
Business
1 answer:
Zina [86]4 years ago
4 0

Answer and Explanation:

In order to know how this affects the production we will first find out the quantities produce before and after the technological advance.

Profit maximizing, MR = MC (Marginal revenue = Marginal Cost)

TR = P x Q

TR= (5900 - Q) x Q = 5900Q - Q^2

MR = 5900 - 2Q (Taking derivative)

Now, MR = MC

5900 - 2Q = 800

Q = 2550

After Technological advancement,

MR = MC

5900 - 2Q = 500

Q = 2700

After technological advancement, Backspot Computers are able to produce more quantities. An increase of 150 units. The technological advancement has helped them.

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Klamath Corp. produces two products: saws and drills. Three activities are used in their manufacture. These activities and their
slega [8]

<u>Solution and Explanation:</u>

Answer 1 <u>Calculation of activity rate is as follows: </u>

<u>Stamping</u> = Budgeted costs divided by Machine tour  

= $200000 / 10000 = $20 machine hour

<u>Assembly</u> = Budgeted costs divided by Labor hour

= $400000 divided by 20000 = $20 labor hour

<u>Setup</u> = Budgeted costs divided by setup

= 30000 / 15 = 2000 setup

Answer 2 <u>Overhead cost per unit = Total overhead cost divided by total units produced .</u>

\text { Saws }=(((4000 * \$ 20)+(7000 * \$ 20)+(3 * 2000)) / 500

Saws = $452 per unit  

\text { Drills }=(((6000 * \$ 20)+(13000 * \$ 20)+(12 * 2000)) / 600

Drills = $673 per unit

5 0
3 years ago
Imagine the local government banned students from purchasing items before or after school without a parent. If you wanted to cha
Crank

The most appropriate option to counteract this action by citizens is Attend and participate in the next local Council meeting (option E)

<h3>What is a local council?</h3>

The local council is a local public administration body that has a mandate over a city. This estate can establish some special regulations for said territory and citizens must comply with them.

However, there are ways for citizens to influence political decisions and modify determinations according to their convenience.

One of the ways citizens have to influence political decisions is by participating in local councils.

Note: This question is incomplete because the options are missing. Here are the options:

A. Boycott the snack shop

B. Plan sit-ins at the local town hall

C. Write a letter to your Congressperson

D. Write an email to your Governor

E. Attend and participate in the next local Council meeting

Learn more about local Council in: brainly.com/question/13750185

6 0
3 years ago
Give examples of B2C,B2B,C2C and social,mobile and local e-commerce besides those listed in the book
ankoles [38]

<u>Explanation:</u>

Full meaning of acronyms:

  • B2C = Business to Consumer.
  • B2B = Business to Business.
  • C2C = Consumer to Consumer.

Business to Consumer: This involves businesses that directly deal (sell to) with consumers. For example, Amazon, etc.

Business to Business: These businesses directly service or sell to other businesses, not to the final consumer. For example, Microsoft and Intel (in this case Intel sells its microchips to Microsoft).

Consumer to Consumer: These business transactions are carried between consumers only. For example, Craigslist website.

7 0
3 years ago
In the long run, profits in a monopolistically competitive market are zero because: a. of government regulations. b. of collusio
zvonat [6]

Answer:

c. firms are free to enter and exit the market.

Explanation:

A monopolistically competitive market is a market in which there are a lot of organizations that sell products that are similar and it tends to be easy to enter and leave the industry. Because it is easy for a company to enter the market and there is a lot of competition, in the long run the economic profit is zero. According to this, the answer is that in the long run, profits in a monopolistically competitive market are zero because firms are free to enter and exit the market.

The other options are not right because a monopolistically competitive market has zero profits because of its low entry barriers and amount of competitors not because of government regulations or an illegal agreement between organizations to control competition. Also, in a monopolistically competitive market the products are similar.

6 0
3 years ago
Job interviews can change your life. They can also be stressful, but if you learn about the process and prepare yourself ahead o
tankabanditka [31]

Answer:

Employment interviews will persuade almost every applicant of client potential. A further description is provided below.

Explanation:

  • A dialogue somewhere between a prospective employer and a somewhat job seeker or is considered as a Job interview. A career interesting interview to further decide however if a candidate or a job seeker is eligible for a corporate job or not.
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7 0
3 years ago
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