Answer:
M = $3.20
N = $9.95
O = $5.21
I believe it is the second option.
Explanation:
Item No. of Items Purchased Resale Price Per Unit
M 4,600 $4.05
N 2,300 $12.60
O 6,600 $6.60
total resale price:
- M = 4,600 x $4.05 = $18,630
- N = 2,300 x $12.60 = $28,980
- O = 6,600 x $6.60 = $43,560
- total = $91,170
markup % = ($91,170 - $72,000) / $72,000 = 26.625%
purchase cost per unit:
- M = $4.05 / ( 1 + 26.625%) = $3.20
- N = $12.60 / ( 1 + 26.625%) = $9.95
- O = $6.60 / ( 1 + 26.625%) = $5.21
Answer:
I think the above information will help you.....
If the production of a good created both external costs and external benefits, but the external costs were greater, without government intervention, a market economy will not produce the product at all.
In the production and consumption of goods and services, there exist costs that are passed on to a third party. The general public, who is ultimately responsible for paying for them, is in fact subsidizing goods and services with external costs.
External costs are still necessary to be paid for even when they are not included in the product's price. It is ultimately the responsibility of society as a whole to pay for external costs through taxes, accident compensation, medical expenditures, insurance premiums, deterioration in environmental quality, and losses in natural capital.
Usually, the price of goods and services includes External costs, which results in a higher overall cost. Because consumers frequently select the lowest options, clean, sustainable products have a pricing disadvantage.
Learn more about External costs here
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When a company has a monopoly on a product, there is no other competition so that producer can price the product however high they want. When there is competition, the product must be priced appropriately or the consumer will go to another option. Additionally, monopolies can result is a lesser quality product.