Suppose the cost of flying a 100-seat plane for an airline is $50,000 and there are 10 empty seats on a flight. The marginal cos
1 answer:
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Answer:
c. fall in the short run, and fall even more in the long run.
Explanation:
The aggregate demand shifts to the left in recession or contractions, in consequence the level of prices falls. For this analysis we consider the shor-run supply curve with a positive slop.
As we know, the economy in the long run tends to equilibrium, where the the production level is fixed and equal to the potential of production of the economy. The initial reduction of prices incentives the consumption in the long run, stabilizing with the long run quantites in a minor level of prices.
In the attached image you can observe the process described previously.
Answer:
Desired profit for the year = $2,329,000
Explanation:
Using the given information, we have
Production volume = 602,000 units
Market price = $34
Operating income desired = 17% of total assets
Total Assets = $13,700,000
Operating income = $13,700,000 17% = $2,329,000
Therefore desired profit = $2,329,000
therefore with this information desired profit per unit = $2,329,000/602,000 = $3.869
Target cost per unit = $34 - $3.869 = $30.131
Desired profit for the year = $2,329,000