Profit will be maximum for the firm where marginal revenue = marginal cost.
Since, the market price is fixed at $8 and therefore each additional unit of camera will be sold at $8.
Hence, marginal revenue = $8.
From the table, it is clear that cameras are manufactured in batches of 100.
Marginal cost is the cost incurred to produce one additional unit of camera. It will be calculated by taking the difference of successive variable costs (or total costs) divided by 100.
To produce 400th unit, marginal cost = (2760 - 1960)/100 = $8
Hence, profit maximising quantity isB. 400 (MR = MC)
Answer:
The incentives of a supplier are the opposite of the incentives of a demander because it is a relationship whose nature makes supply and demand inversely proportional to each other: the higher the supply, the lower the demand for each product and the lower its price; While the lower the supply, the greater the demand for each product and the higher its price. Thus, in many cases, suppliers seek to restrict supply to maximize profits, while demanders seek to lower prices through a greater quantity of goods offered.
Answer:
2. double taxation of distributed profits
Explanation:
Corporation is a business entity that is formed by the issuance, sale and purchase of shares or stock. It is owned by people known as shareholders and their liability is limited to the shares or stock held.
Considering all the options given, the only disadvantage in a corporation is double taxation of distributed profits. as the company incurs company income tax (CIT) and the dividend paid to shareholders attracts other forms of tax such as withholding tax.
Answer:
A. Yes. Implicit contract
B. No he cannot
Explanation:
A. From what happened there seemed to be an implied contract between these two people. Although this contract was not done formally, given past situations, an implied contract was formed over time. Hoff felt hawley had dropped the car off for repair given that he usually did this. Hawley cannot make a case that he was going to fix it himself.
B. Hoff cannot recover for the carburetor or fender because the question did not say hawley asked him to do so. If he did it without consent then there is no recovery.
<u>B. Selective-demand advertising</u> is a type of advertising used to increase the demand for all brands of a product within a specific industry.
The correct option is B.
<u>Explanation</u>:
Advertising is the process of producing advertisement for commercial products or services. Advertising helps the commercial product to reach many customers.
Advertising can be done through television, newspaper, magazine, radio, smart phones and internet.
Advertising can be followed as the major process to promote and sell the products or services.
Selective demand advertising is used to advertise about the benefits of the specific brand. This helps in creating the demand for specific brand of product or service.
