All categories

3 years ago

The profit-maximizing output level for a monopolist is where the

1 answer:

5 0

The profit maximizing output level for a monopolist is where the MARGINAL REVENUE EQUALS THE MARGINAL COST.
In order for a monopolist to determine the profit maximizing level of output, he has to gather information about market demand, product price and cost of production for different level of output. The data gathered can then be used to determine the various types of cost that are expended by the company and this can be represented on a graph. The point at which the marginal revenue equals the marginal cost is the point of profit maximum level of output for the company.

You might be interested in

Williams Corp. is considering signing contracts that will obligate the firm to purchase 100000 Swiss Francs worth of computer eq

ella [17]

Answer:

$80,000

Explanation:

Given that at the end of each quarter, William corporation will purchase 100,000 Swiss francs worth of computer equipment for next 2 years. A local high school will still purchase this computer equipment at $89,000 each quarter for the next 2 years.

This means, we have the following:

Cost of purchase = 100,000 * number of quaters = 100,000 * 8 = 800,000

Convert to USD at an exchange rate of $0.79 = 800,000 * 0.79 = $632,000

Cost of purchase in USD = $632,000

Also, find the revenue generated after selling the computer equipments to the high school.

Revenue generated = $89,000 * number of quaters = $89,000 * 8 = $712,000

Williams' profit or loss would be calculated using the following:

Profit(loss) = Revenue generated - Cost of purchase

= $712,000 - $632,000

= $80,000

Since we have a positive value, Williams would make a profit of $80,000 through out the life of the contract.

4 0

4 years ago

The double-declining-balance and straight-line depreciation methods: multiple choice are the only acceptable methods of deprecia

zheka24 [161]

The double-declining-balance and straight-line depreciation methods Produce the same total depreciation over an asset's useful life.

Two of the four depreciation methods permitted by US generally accepted accounting standards are the straight-line and double-declining-balance depreciation procedures (GAAP).
The sum of the years' digit and units of production are the other two techniques. By deducting the salvage value from the asset's purchase price and either dividing the depreciable amount by the number of years or applying a preset rate to the depreciable amount, the straight-line method is derived.
The depreciation rate is calculated using the double-declining-balance technique by dividing 100 percent by the asset's useful life in years, then multiplying the result by two.
The diminishing amount is then used to calculate depreciation expenditure until only the salvage value is left. They therefore result in the same depreciation over the course of the asset's useful life.

<h3>Is double declining balance a method of straight-line depreciation?</h3>

The straight-line depreciation technique, another and arguably even more frequent type of depreciation, depreciates an asset's value at a rate that is half that of the DDB depreciation method.

<h3>What is double declining balance depreciation method?</h3>

A type of accelerated depreciation method called the double-declining balance method doubles the rate at which an asset's value depreciates compared to the straight-line approach.
Accelerated depreciation refers to the process of depreciation that occurs twice as quickly as the straight-line method.

Learn more about double-declining-balance here:

brainly.com/question/24296752

#SPJ4

4 0

2 years ago

Steaks n' Fries Restaurant Company's decision makers view a particular risk in the consumption of Steaks n' Fries' products as o

tester [92]

Answer:

D) Outcome-based ethics

Explanation:

Outcome-based ethics proposes that people should act in ways that help them achieve desired outcomes, whether those ways are morally acceptable or not.

In the question, Steaks n' Fries management is worried about the outcome (revenues), instead of other type of things to consider such as consumer protection or social responsability. They are acting under a system of outcome-based ethics.

5 0

3 years ago

Although a major advantage of the corporate form of entity is the liability protection for its principals, there are some cases

Triss [41]

Answer:

A) This is called piercing the corporate veil and may result in significant liability for the corporation's principals.

Explanation:

The phrase "Piercing the corporate veil" is used to describe a situation where a court will put aside limited liability and hold a corporation's shareholders or directors liable for the actions and liabilities of the corporation.

This is not a common procedure and courts usually do this based on the following:

"unity of interest and ownership": interest of the shareholders doesn't stand together anymore.
"wrongful conduct": illegal or wrongful actions by the directors or shareholders.
"proximate cause": as a result of the illegal or wrongful actions, other parties were harmed.

6 0

3 years ago

The cost object of the plantwide overhead rate method is:

Tema [17]

Answer:

The correct answer is letter "A": The unit of product.

Explanation:

A plantwide overhead rate is a single overhead rate given typically in smaller firms to allocate manufacturing overhead costs to products or cost objects. The rate is implemented when services provided by the different units of the company are undifferentiated. Then, <em>the cost object used in the plantwide overhead rate is the unit of product.</em>

8 0

4 years ago