<u>Solution and Explanation:</u>
The Short run supply curve: In a perfectly competitive market, the supply curve is apportion of its rising part of the marginal cost curve. It lies above the minimum of the avergae varibale cost curve. Here, the average variable cost is $14. So, in this case, the short run supply curve would be the portion of the marginal cost curve lies above $14. thus, it should lie above $14.
Thus, the correct option from the given options is A.
Answer:
$10,700
Explanation:
Operating cash flow is computed as;
= Net income + non cash expenses - outlay in working capital
First, we'll determine the net income
Net income = Sales $44,800 - cost $27,500 depreciation expense $2,650 - Taxes $4,500
Net income = $10,150
Operating cash flow = $10,150 + $2,650 - $2,100 = $10,700
The answer is B. accurately reflect the change in production.
Answer:
option (c) $875 per year
Explanation:
Given;
Average cost of collision claims for careful drivers = $500 per year
Average cost of collision claims for for poor drivers = $3000 per year
Poor drivers known by the company = 15%
thus,
Careful drivers = (100% - 15%) = 85%
Therefore,
Insurance company's breakeven price for the collision insurance
= (Poor drivers known × Average cost of collision for poor drivers ) +( Careful drivers × Average cost of collision claims for careful drivers)
= 0.15 × $3000 + 0.85 × $500
= $450 + $425
= $875 per year
Hence, the correct answer is option (c) $875 per year
