What is the best answer choice

Suppose that Verizon Wireless has hired you as a consultant to determine what price it should set for calling services. Suppose

Feliz [49]

Answer:

If Verizon charges an optimal two-part price thenconsumer surplus will be zero.

Explanation:

Given a competitive market the consumer surplus will be the area of the demand curve above the market price

This is, between the intersection point with Y axis and a parallel at market price. Ofter represent as a triangle

If a monopolistic company maximize profit It will decrease this consumer surplus as much as it can to gain it from itself.

First it will set price equal to his marginal revenue.

Then, if possible it will charge two tariff a fixed component and a variable component per usage This will extrac all consumer surplus in favor of the firm leaving a consumer surplus of zero.

If Verizon charges an optimal two-part price thenconsumer surplus will be zero.

3 0

3 years ago

Direct labor on the February cost of production report (weighted-average method) revealed a cost per equivalent unit of $0.30. T

aleksandrvk [35]

Answer:

Kindly find the complete questions attached.

a) 325,000 units were transferred to finished goods

direct materials 171,053

direct labor 85,526

factor overhead 68,421

(b) February's equivalent units of production was 445,000 units :

direct materials 234,211

direct labor 117,105

factor overhead 93,684

(c) the cost of direct material introduced into production during February was $234,211

(d) The cost of direct labor introduced into production in February was $35,132

(e) The factory overhead application rate was 80% of Direct Labor

(f ) Of the total cost (beginning inventory plus additional production cost), allocation to

ending work in process is 120,000 units costing $80,211

(g) Of the total cost (beginning inventory plus additional production cost), transfer to finished goods inventory is $217,237

(h) February's gross profit is $373,363

Please review the attached for detailed workings and presentation of the answers

6 0

3 years ago

Let's say you want to open a shoe store that will specialize in high-end shoes. But before you do, you want to determine how man

sveta [45]

Answer:

$240,000

Explanation:

Selling price per pair of shoes $160 x 12,000 ...1,920,000

Cost (to you) per pair of shoes $80 x 12,000 .... $960,000

Sales commission per pair $10 x 12,000.......... $120,000

Salaries ..........................................................................$420,000

Rent................................................................................ $120,000,

Advertising..................................................................... $20,000,

Insurance .........................................................................$16,000,

Miscellaneous fixed costs ........................................<u>..$24,000,</u>

Profit ..............................................................................<u>$240,000</u>

6 0

3 years ago

The following information applies to questions 9 and 10. Company AB Sales $100,000 $100,000 Variable cost 60,000 40,000 Contribu

Yuki888 [10]

Answer:

D) $36,000

Explanation:

Company Current After Increase Change

Sales $100,000 $140,000 +40,000

Variable cost $60,000 $84,000 +24,000

Contribution margin $40,000 $56,000 +16,000

Fixed expenses $20,000 $20,000 +0

Operating income $20,000 $36,000 +16,000

The Increase in Operating Income will be = $36,000 as our final answer

3 0

3 years ago

Read 2 more answers

PURCHASING POWER PARITY In the spot market, 19.1 Mexican pesos can be exchanged for 1 U.S. dollar. A compact disc costs $15 in t

LiRa [457]

Answer: $286.50

Explanation:

Purchasing Power Parity (PPP) posits that prices are the same across countries given the rate of exchange between the currencies of the countries in question.

1 USD = 19.1 Mexican pesos.

Compact disc in Mexico would cost;

= 19.1 * 15

= $286.50

8 0

3 years ago