All categories

3 years ago

In order to sell more goods and/or services, what must a monopoly do?

1 answer:

7 0

In order to sell more goods and/or services, what must a monopoly do? Reduce price and increase output. A monopoly is when a company or a product has control in the industry. The supply or trade of this item or service is limited. For a monopoly to sell even more, they should reduce the price and increase their output because they have no competitors.

You might be interested in

MC Qu. 17 Tower Company planned to produce 3,000 units... Tower Company planned to produce 3,000 units of its single product, Ti

zmey [24]

Answer:

From the list of options, Option A is the only correct one:

"the actual usage of materials was less than the standard allowed".

Explanation:

Material usage variance

A material usage variance occurs when the standard quantity required to active a particular level of production is higher or lower than than the actual actual quantity used. A favorable variance would mean than less quantity of materials were used than the standard to achieve a given output level. And an adverse variance would mean the opposite.

Material price variance

A material price variance occurs where materials are purchased at a price either lower or higher than the standard price. A favorable variance is recorded where the actual total cost of materials is lower that the standard cost. While an adverse variance implies the opposite.

From the list of options, Option A is the only correct one

3 0

3 years ago

Lagle Corporation has provided the following information:

mezya [45]

Answer:

b.$20,550

Explanation:

The period costs are those costs which include costs for a particular period. The calculation for these costs differ under the two methods absorption and variable. Under absorption Costing the Period costs include Variable selling and administrative + Fixed selling and administrative expenses.

Lagle Corporation

Absorption Costing

Direct materials $ 4.75 * 7000= $ 33250

Direct labor $ 3.70 * 7000= $ 25900

Variable manufacturing overhead $ 1.45 * 7000= $ 10150

Fixed manufacturing overhead $ 18,200

Total Product costs $ 87,500

Sales commissions $ 1.70 * 7000=$ 11900

Variable administrative expense $ 0.55 * 7000= $ 3850

Fixed selling and administrative expense $ 4,800

Total Period Costs $ 20550

Mostly Absorption costing is used for daily basis. Therefore Choice b is the best option.

Under variable costing the Period costs include Fixed manufacturing overheads + Fixed selling and administrative expenses.

Lagle Corporation

Variable Costing

Direct materials $ 4.75 * 7000= $ 33250

Direct labor $ 3.70 * 7000= $ 25900

Variable manufacturing overhead $ 1.45 * 7000= $ 10150

Sales commissions $ 1.70 * 7000=$ 11900

Variable administrative expense $ 0.55 * 7000= $ 3850

Total Product costs $ 85,050

Fixed selling and administrative expense $ 4,800

Fixed manufacturing overhead $ 18,200

Total Period Costs $ 23000

7 0

3 years ago

The purchase price and all costs to bring an asset to its desired condition and location for use should be ________.

Nana76 [90]

Answer:

b. capitalized

Explanation:

The purchase price and all costs to bring an asset to its desired condition and location for use should be capitalized.

3 0

3 years ago

Refer to Exhibit 9.3, which shows the cost and revenue curves for a non-discriminating monopolist. The total cost incurred by th

Gnom [1K]

Answer: $19,800

Explanation;

The Monopolist will maximize output at the point where Marginal Revenue equals Marginal Cost because at this point all resources are being fully utilized.

Total Cost = Average Total Cost * Quantity produced

At the point where MR=MC, the quantity produced is 1,100 units.

The Average Total Cost tallying with this is $18 per unit.

Total Cost = 18 * 1,100

= $19,800

3 0

3 years ago

Suppose Nicholas owns a business making Christmas tree ornaments. Currently, he makes 300 ornaments a month. At this level of pr

Fudgin [204]

Solution and Explanation:

1. MC = Cost of raw material + Cost of time

MC = 5 plus (10 divide by 2)

MC = $10

2. TFC = $300

Q = 300 , AFC = TFC/Q = 300 divide by 300 = $1

3. His profit maximizing output would be higher

Reason: P = MR = $15 , MC = $10

Since MR > MC, and at the profit maximizing point MR = MC, it is better for Nicholas to increase his output.

4. His profit maximizing output would be higher

Reason: P = MR = $15 , MC = $4 + $5 = $9

Since MR > MC, and at the profit maximizing point MR = MC, it is better for Nicholas to increase his output.

3 0

4 years ago

In order to sell more goods​ and/or services, what must a monopoly​ do?

In order to sell more goods and/or services, what must a monopoly do?