Answer:
A Price: Remain constant, Level of Output: Remain constant, Profits: Increase
Explanation:
The image attached shows the different possible solutions. Options can be eliminated based on the problem statement. First, Options B, C and D can be discounted because of the change in output levels. From the information available, the technological innovation lowers marginal cost and cost of production, however it does not affect production time or output levels.
For the two remaining options, A and E, both are possible scenarios based on the information available.
Option E:
Price decreases, output level remains the same and profit remains the same. While this is a possible outcome, as the business is a monopoly, there is no incentive for the monopolist to reduce prices along with cost as they are already the only player in the market. Especially when the reduction in price does not result in increased profit.
Option A:
Price and output level remain constant, while profit increases. This is the most likely outcome as the business is a monopoly. The owner can take advantage of the reduced costs and sell at the same price to increase profits.
Answer:
$50
Explanation:
Marginal costs refer to the additional expense incurred in the manufacturing of one more unit of a product. It is the incremental cost associated with producing an extra unit of a good.
The formula for calculating marginal cost is,
MC = change in cost/ Change in quantity
in this case:
MC = $1550 - $ 1500
26-25
MC = $50/1
Marginal costs= $50
Answer:
True
Explanation:
Off balance sheet items are transactions that generate fees for the business (such as guarantees), and to hedge against future loss (such as futures investments).
Meaning assets and liabilities that are deferred or contingent to business success.
Answer:
c. when the company corrects poorminusquality goods or services before delivery to customers.
Explanation:
Internal failure costs are costs incurred when the company corrects <u>poorminusquality goods or services before delivery to customers.</u>
Answer:
See calculations below
Explanation:
With regards to the above we'll simply add back the given depreciation to the net profit for 2018
= Net income $1,090,000 + depreciation
$290,000
= $1,358,000
Cash flow for 201 is $1,358,000