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Sergio [31]
3 years ago
6

A monopoly market is characterized by the inverse demand curve P = 1,200 – 40 Q and a constant marginal cost of $200. If the mar

ginal cost of production rises to $400, the profit-maximizing output level _____ units and the price rises by _____.
Business
1 answer:
Sergeeva-Olga [200]3 years ago
4 0

Answer:

The profit maximizing output level declines by 2.5 units and the price rises by $100.

Explanation:

In a monopoly market the inverse demand curve is given as,

P = 1,200 - 40Q

The marginal cost of production of the last unit is $200.

The total revenue is

= Price\times Quantity

= 1,200Q - 40Q^{2}

The marginal revenue of the last unit is

= \frac{d}{dx} TR

= 1,200 - 80Q

At equilibrium the marginal revenue is equal to marginal price,

MR = MC

1,200 - 80Q = 200

80Q = 1,000

Q = 12.5

Putting the value of Q in the inverse demand function,

P = 1,200 - 40\times 12.5

P = $700

Now, if the marginal cost rises to $400,

At equilibrium the marginal revenue is equal to marginal price,

MR = MC

1,200 - 80Q = 400

80Q = 800

Q = 10

Putting the value of Q in the inverse demand function,

P = 1,200 - 40\times 10

P = $800

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6 0
3 years ago
last year minden company introduced a new product and sold 15,000 units of it at a price of $70 per unit. the product's variable
Inga [223]

A company is a legal entity formed by a group of individuals to engage in and operate a business commercial or industrial enterprise. A company may be organized in various ways for tax and financial liability purposes depending on the corporate law of its jurisdiction.

Present Yearly Net operating income (loss)

(Units * CM Per unit)-Fixed cost

Units Sales 415000|

[Selling Price Per Unit 70

\Variabel Expense Per unit 40|

Fixed Expenses 540000]

Compute the CM ratio

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Variable Expense Per unit 40.00

Contribution Margin per unit ( Selling Price - Variable Cost) 30.00

Ico Ratio =( CM/Selling Price) 42.857%

Learn more about the company  here

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5 0
1 year ago
Consider a firm with a daily demand of 100​ units, a production rate per day of 500​ units, a setup cost of​ $200, and an annual
podryga [215]

Answer: 980

Explanation:

The number of units of inventory that the storage area must be able to​ hold will be calculated as:

Demand = 100 × 300 = 30000

Production rate per day = 500

Setup cost = $200

Annual holding cost = $10

We then use the economic order quantity formula to solve and the answer will be gotten as 1225

The maximum inventory will now be:

= EQQ × (1-d/p)

= 1225 × (1-100/500)

= 1225 × ( 1 - 0.2)

= 1225 × 0.8

= 980

6 0
2 years ago
When formulating accounting principles, the Securities and Exchange Commission’s role is A : consistently secondary. B : nonexis
navik [9.2K]

Answer:

C: sometimes primary and sometimes secondary.

Explanation:

When formulating accounting principles, the Securities and Exchange Commission’s role is sometimes primary and sometimes secondary.Securities and Exchange Commission has the responsibility to develop accounting standards which has to be enforced by public companies and they also consistently looked to the private sector for assistance in it. The securities and exchange commission retains the authority to establish the standards which formulate by them.

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3 years ago
If romeo wants to encourage more innovation among his​ employees, he should​ __________.
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Romeo could do several things to encourage innovation for example by showing inventions created by other departments of his enterprise or by people in other companies either having the actual item or showing a video of it, and also by rewarding those who come up with new innovations with prizes for example. Of course, innovative ideas or better ways of doing things would also be encouraged.
8 0
3 years ago
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