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SOVA2 [1]
4 years ago
11

Advanced Printing Systems is a firm in a monopolistically competitive market. If its marginal cost is $18 per unit in the short

run, if it is maximizing profits, and if it is selling at the equilibrium quantity, what is its marginal revenue?
Business
1 answer:
castortr0y [4]4 years ago
3 0

Answer: Marginal Revenue = $18 per unit

Explanation:

The profit maximizing condition for a firm in a monopolistic  competitive market is at MR = MC.

So, the marginal revenue of the firm is equal to the marginal cost of the firm.

In this question, the firm's marginal cost is $18 per unit in the short run and it is a profit maximizing firm. Thus, its marginal revenue is $18 per unit.

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8 0
3 years ago
INCOME STATEMENT Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%
Papessa [141]

Answer:

Interest= $1000000

Explanation:

The general structure of an income statement proceeds as follow:

Revenue/Sales (+)

Cost of Goods Sold (COGS) (-)

=Gross Profit

Marketing, Advertising, and Promotion Expenses (-)

General and Administrative (G&A) Expenses (-)

=EBITDA

Depreciation & Amortization Expense (-)

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Other Expenses (-)

=EBT (Pre-Tax Income)

Income Taxes (-)

=Net Income

<u>In this exercise:</u>

EBIT= $6000000

interest= ?

tax=? (0,40)

EBITDA=$3000000

interest= [EBITDA/(1-t)]-EBIT

interest=3000000/0,60-6000000=-$1000000

EBIT= 6million

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Tax=2million (EBIT-interest)*0,40

Net income=3million

7 0
3 years ago
The master budgeting process typically begins with the sales budget and ends with a cash budget and:
Serhud [2]

Answer:

Budgeted financial statements

Explanation:

4 0
4 years ago
Which of these is true about the cash cow?
laiz [17]

Answer:

d

Explanation:

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5 0
3 years ago
If the Federal Reserve sells $80,000 in Treasury bonds to a bank at 4% interest what is immediate effect on money supply?
seropon [69]
The answer you're looking for is A. Hope I helped! 
3 0
4 years ago
Read 2 more answers
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