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bonufazy [111]
3 years ago
10

1.If Enviromax wants to maximize profit, what price would they charge?

Business
1 answer:
Lunna [17]3 years ago
5 0

Answer:

The question is incomplete. However, kindly find below the complete version of the question:

Question

Jack and Diane own Enviromax, a monopolistically competitive firm that recycles paper products. (1.)If Enviromax wants to maximize profit, what price would they charge?  (2).What is their profit per unit if they are operating at the profit maximizing output?

Answer / Explanation

(1) First before we continue to answer this question, let us define what a monopoly is: This is a kind of market situation where the sole production or manufacturing of a product have been given to a single entity.

The graph attached below will give us a proper understanding and illustration of the answer.

Where:  MR in the graph is defined as the additional revenue obtained when producers produce 1 more unit of good and the AR refers to the total revenue divided by the amount of output produced which is essentially  the price of one unit of good.

MC refers to the additional cost incurred by producers when they produce 1 more unit of good  and is upwards sloping due to increasing opportunity costs of production.  

Noting that since the firm is a monopolistic type, the MR curve is lower than the  AR curve because if the firm wants to sell an additional unit of output it will have to lower the  successive price.  This is unlike the case of a firm operating in a PC where it takes the price as given and hence has no  ability to set prices.  it should also be noted that profit maximizing for all firms (whether PC or non-PC) occurs at MC=MR. This is because if MC>MR  this means the additional cost of producing this unit of good > additional revenue obtained from selling  this unit of good and is hence not profit maximizing. If MC<MR, this implies that the firm should not stop  at producing this unit of good because it will be forgoing the additional net revenue (profit) should it do  so. Hence all firms will produce at the point where MC=MR.

(2) Now referring back to the graph, the profit-maximising point where MC intersects MR hence occurs at  output Q. The firm will hence produce Q and hence price at P according to the AR (DD) curve.

In the graph below, since AR > AC at the profit maximizing level, this implies that per unit revenue > per unit costs and the firm makes a supernormal profit (defined as what excess profit above what is  needed to keep firms in production which is normal profit) of the shaded area.  If the firm was operating in a perfectly competitive market however, then the profit maximizing point  would occur at AR =MC (since AR=MR in a PC market) and the firm would be producing at Qpc and Ppc

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Answer:

Aids to trade communication

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Trade promotion organizations in a country and Global organizations for international trade. These important auxiliaries ensure a smooth flow of goods from producers to the consumers.

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7 0
3 years ago
midshipmen Company borrows $17,500 from Falcon Company on July 1, 2021. Midshipmen repays the amount borrowed and pays interest
irina [24]

Answer:

                                        Debit                            Credit

July 2021

Cash                                 17,500

Loan payable                                                        17,500

June 30, 2022

Loan Payable                   17,500

Interest payable                 2,100

Cash                                                                     19,600

Adjusting Entry's

                                         Debit                                Credit

Interest expense               1050

Interest Payable                                                            1050

Explanation:

Interest for the year = 0.12*17500=2100

Interest expense 2021= 6/12*2100= 1050

6 0
3 years ago
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Allison, a long-time employee at aim corporation is helping william, a new employee; learn the culture of the organization. alli
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Q: Alison, a long-time employee at AIM Corporation is helping William, a new employee; learn the culture of the organization. Alison is using the _____________ process.

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A degree of aggressive procurement involvement not normally encountered in supplier selection refers to ____. Group of answer ch
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Answer:

supplier development.

Explanation:

A degree of aggressive procurement involvement not normally encountered in supplier selection refers to supplier development.

Supplier development is a business strategy and it involves the process of working one-to-one basis or closely with certain suppliers in order to improve and boost their performance for the benefit of growing and developing an organization.

It is a concept that is also similar to reverse marketing in business management. It is a strategic business plan which is aimed at improving the quality and performance of suppliers by availing them resources they need to achieve success and have competitive advantage in the supply chain.

For instance, a buying organization might decide to implore suppliers to enter an emerging market.

Also, another example of the supplier development is, in order to prevent the wide-spread of Corona virus, CDC is ensuring its suppliers of ppe (personal protective equipment) are continuously supplying face masks.

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3 years ago
TriStar Company, a small biotechnology firm, has borrowed $250,000 to purchase laboratory equipment for gene splicing. The loan
Komok [63]

Answer:

$54,078.85

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Pmt = <em>$54,078.85</em>

Therefore Payment per year is <em>$54,078.85</em> (using a financial calculator)

8 0
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