1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Vesnalui [34]
3 years ago
14

You are the manager of a firm that competes against four other firms by bidding for government contracts. While you believe your

product is better than the competition, the government purchasing agent views the products as identical and purchases from the firm offering the best price. Total government demand is Q = 800 -10P and all five firms produce at a constant marginal cost of $50. For security reasons, the government has imposed restrictions that permit a maximum of five firms to compete in this market; thus entry by new firms is prohibited. A member of Congress is concerned because no restrictions have been placed on the price that the government pays for this product. In response, she has proposed legislation that would award each existing firm 20 percent of a contract for 100 units at a contracted price of $70 per unit. Would you support or oppose this legislation? Explain.
Business
1 answer:
hodyreva [135]3 years ago
3 0

Answer: $1,000

Explanation:

Given Data;

Total government demand is Q = 800 -10P

marginal cost (Mc) = $50

contracted price (cp) = $70 per unit

Therefore;

Marginal Revenue ( MR ) = Marginal Cost ( MC)

Q = 800 -10P

800 - Q = 10P

Divide through by 10, where Q = 1

800/10 - 1/10 = P

80 - 0.1Q = P

Total Revenue(TR) = PQ

TR = 80 - 0.1Q

MR = MC

where MC = $50

80 - 0.1Q = 50

Collecting like terms

80 - 50 = 0.1Q

30 = 0.1 Q

Divide both side by 0.1

Q = 300

Price would be

P = 80 - 0.1Q

P = 80 - 0.1(300)

P = $50

MC = 40

Producing Q units

Total Cost (TC ) = 40 * ( 300 )

= $12,000

Total profit

= TR - TC

= ( P * Q ) - $12,000

= ( $50 * 300 ) - $12,000

= $15,000 - $12,000

= $3,000

Changes caused by regulations

Contracted price = $70

Quantity = 100Units

TT’ = ( P * Q ) - TC

= ( 70 * 100 ) - ( 50 * 100 )

= $7,000 - $5,000

= $2,000

TT - TT’ = $ ( 3000 - 2000 )

= $1,000

If legislation is passed all profit would reduce by $1,000

You might be interested in
An unusual development in the wake of the 2007-2009 financial crisis was that nominal interest rates on some financial instrumen
bogdanovich [222]

Answer:

c. The real interest rate is 1 percent and the expected inflation rate is minus 2 percent

Explanation:

Nominal interest rate = real interest rate + expected inflation rate.

For the third option, the nominal interest rate: 1% + (-2%) = -1%

For the first option, the nominal interest rate: 2% + 1% = 3%

For the second option, the nominal interest rate: 0 + 2% = 2%

For the fourth option, the nominal interest rate: -2% + 3% = 1%

I hope my answer helps you

4 0
3 years ago
You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president h
lana [24]

Answer:

Explanation:

Variance analysis studies the relationship between actual and budgeted cost for business activities. Variance analysis helps the management in two ways;

  • Favorable
  • Unfavorable

Favorable - if the actual cost incurred is less than the budgeted cost, the difference amount is a saving for the company.

Unfavorable - if the actual cost is more than the budgeted cost, the difference is an extra expenditure for the company.

Flexible budget;

  • The flexible budget is prepared at different levels of volume that was initially projected by the master budget.
  • It is highly styled and more useful than the master budget.

The report showing the Activity and Spending  Variances for march is given in the file attached below, in other not to cause confusion. Thank you.

Download docx
3 0
3 years ago
The expansionary phase of the business cycle is characterized by
Leokris [45]

Answer:

<u>increasing real output and reducing unemployment</u>

Explanation:

The expansionary phase of the cycle is business characterized by the i<em><u>ncreasing real output and reducing unemployment.</u></em>

<em> Business cycle refers to that cycle in which there is increase and decrease or fall and rise of output of goods and services.</em>

<em> Business cycle has main four stages expansion ,peak , contraction and trough.</em>

The main cause of business cycle is the forces of supply and demand , expectation of future and it availability of the capability may also cause the business cycle.

Economic cycle is another name of Business cycle . Business cycle plays a crucial rule in the economy as it influence the demand of the consumer.

4 0
3 years ago
About 13 to 16 guests out of every 100 are purposefully out to scam us and get something for free.
Oxana [17]

Answer:

Find attached complete question with the multiple choices:

The correct answer is false

Explanation:

The statement implies that in an hospitality business,13% to 16% of the guests checked in, in order to be served for free.

Hospitality business sector prouds itself in having clients that have taste and want value for money,this is evident in their ability to make payments for hotel reservations prior to arrival,as a result ,it would be out of place to say 13% to 16% of such individuals want free service.

Everyone knows that such luxury of service comes at a premium price,it is not in anyway similar to buying a course online where to some extent you enjoy a free service(freemium) and expected to pay for any service above the minimum.

All in all,hospitality is pay as you go.

Download xlsx
7 0
3 years ago
As Facebook, Twitter, and text messaging become more popular ways to communicate, which type of communication is eliminated? A.
Sophie [7]
The correct answer is B. Speeches
7 0
3 years ago
Read 2 more answers
Other questions:
  • You decide to buy a new car. You talk to friends about it, research mechanical specifications in Consumer Reports, test drive di
    8·1 answer
  • Mary Jane is a lawyer who can earn $150 per hour in her law practice. She is also an excellent carpenter who can build cabinets
    14·1 answer
  • Multiple Choice Is an outflow of cash from the use of a plant asset. Is applied to land. Measures the decline in market value of
    6·1 answer
  • A country has constant opportunity cost of production. If they devote all of their resources to the production of blankets they
    15·1 answer
  • What is an expenses?
    6·2 answers
  • On January 2, 2021, Farr Co. issued 10-year convertible bonds at 105. During 2021, these bonds were converted into common stock
    11·1 answer
  • Portia Grant is an employee who is paid monthly. For the month of January of the current year, she earned a total of 8,988. The
    5·1 answer
  • A. State and describe the concept that leads to "conflict of goals between a firm's managers and its shareholders. Give a modern
    8·1 answer
  • Chelsea bought a bond with a face value of $5,000. The bond has a term of 4 years. Chelsea bought the bond at a 3 percent discou
    14·2 answers
  • At a price of $0.50, how many more or fewer cups of lemonade do caroline and emily sell when the temperature is 60 degrees than
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!