Answer: A. It has a competitive advantage in the industry
Explanation:
From the question, we are informed that the average cost of production for a bottle of water in the industry is 0.20 cents while its average price is 0.50 cents and that Water Inc. manufactures the same product for 0.10 cents while its average price is 0.40 cents.
The scenario shows that Water Inc has a competitive advantage in the industry. This is seen as the bottle of water is produced at a cheaper cost wen compared to its rivals.
Answer:
The answer is: A) Declare the law constitutional because Milton's actions substantially affect interstate commerce.
Explanation:
The Commerce Clause, Article I, Section 8, Clause 3 of the Constitution of the United States:
[The Congress shall have Power] To regulate Commerce with foreign Nations, and among the several States, and with the Indian Tribes.
Congress can enact laws that regulate interstate commerce, and this law is an example of one of them. It doesn't matter if Milton's action only affect commerce in a very small way, the law is still constitutional.
The waiting time will be 30 minutes because 30 minutes at $8 per hour adds $4 to the price. Therefore, making the full price equal to $5 for each buyer clears the market.
<h3>What is the price ceiling?</h3>
A price ceiling is a price control mechanism by the government to intervene in the market forces of demand and supply by setting a maximum price.
While price ceilings are imposed to make prices low for consumers, it may cause shortages in the quantities supplied.
Thus, the waiting time will be 30 minutes because 30 minutes at $8 per hour adds $4 to the price.
Learn more about price ceilings at brainly.com/question/4120465
#SPJ12
If a company increases its fixed costs for product b, then the contribution margin per unit will remain the same.
<h3>What is fixed cost?</h3>
- Fixed costs, sometimes referred to as indirect costs or overhead costs in accounting and economics, are costs incurred by a corporation that are independent of the volume of goods or services the company produces.
- They frequently occur again and again, like monthly rent or interest payments.
- These expenses are often capital expenses as well.
- Contrast this with variable costs, which depend on volume (and are based on the quantity produced) and are unknowable at the start of the accounting year.
- Some variable costs are affected by the type of fixed costs.
<h3>What is company?</h3>
- A corporation, often known as co., is a legal entity that stands for a group of people with a certain goal who are either natural, legal, or a combination of the two.
- Members of the company work together for a shared cause in order to accomplish clearly stated objectives.
Learn more about fixed cost here:
brainly.com/question/17100497
#SPJ4
