Answer:
Total differential cost= -$73300
Explanation:
Equipment rental is equal in both alternatives, so it is not relevant for making a decision.
Costs Alternative A:
Material costs $ 38,000
Processing costs 43,000
Building costs 13,700
Total= $94700
Costs Alternative B:
Material costs $ 66,000
Processing costs $66,00
Building costs $36,000
Total= $168,000
Total differential cost= 168000-94700=$73300
Alternative B costs $73300 more than Alternative A. Based only on this information, alternative A is better than alternative B.
Answer:
D) firms whose average private cost is less than price will stay in (or enter) the dry cleaning
industry even though their average social cost exceeds price.
Explanation:
When there is pollution as a result of the daily business, then it involves a huge social cost, as you cause harm to public.
But company's do not consider it in making the decision for business, as it generally do not impact the business in financial matters.
As even if the average cost is less then revenue the profit will be there to run the business.
But till the moment the financial impact is not strong of the social cost the pollution will not affect.
<u>Explanation</u>:
This is an example of a linear programming problem.
THE CONSTRAINTS
Let d, c represents number of desk and chair.
Marketing restrictions
c ≥ 2d; which can be written as
2d - c ≤0
Wood restriction
4d + 3c ≤ 20
OBJECTIVE FUCTION (MAX)
= 40d + 25c
Where d ≥ 0, c ≥ 0
With this details you can then find the solutions either graphically or using any other linear programming solution methods.
Answer:
The price of trucking services would fall until equilibrium prices are reached. Only normal profit would be earned in the long run
Explanation:
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
