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3 years ago

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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Elasticity of demand is a measurement used in economics to show how people respond and demand a product or service when nothing but the price changes.

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3 years ago

Emily Corporation purchased all of Ace Company's common stock on January 1, 2020, for $1,000,000 cash. The investee's stockholde

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Answer:

$ 1,125,000

Explanation:

Calculation for the amount of Equity Income that Emily will record

First step is to find the Net equity income using this formula

Net equity income= Net income +Dividends

Let plug in the formula

Net equity income=$250,000+$25,000

Net equity income=$225,000

Second step is to find the balance of investment using this formula

Balance of investment= (Common stock + Net equity income )- Amortization of unrecorded patent

Let plug in the formula

Balance of investment =($1,000,000+$225,000 )-($600,000/6)

Balance of investment=$1,225,000-$100,000

Balance of investment = $ 1,125,000

Therefore the amount of Equity Income that Emily will record will be $ 1,125,000

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2 years ago

Suppose scientists provide evidence that chocolate pudding increases the bad cholesterol levels of those who eat it. we would ex

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3 years ago

The ___________ is a flexible market that allows you to work short-term

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Answer:

The <u>gig economy</u> is a flexible market that allows you to work short-term.

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3 years ago

Earlier this week, Trump called off a secret meeting at Camp David with Taliban and

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Answer:

NEW YORK (AP) — People who were too young on 9/11 to even remember their lost loved ones, and others for whom the grief is still raw, paid tribute with wreath-layings and the solemn roll call of the dead Wednesday as America marked the 18th anniversary of the worst terror attack on U.S. soil.

“Eighteen years. We will not forget. We cannot forget,” Bud Salter, who lost his sister, Catherine, said at ground zero.

President Donald Trump laid a wreath at the Pentagon, telling victims’ relatives: “This is your anniversary of personal and permanent loss.”

“It’s the day that has replayed in your memory a thousand times over. The last kiss. The last phone call. The last time hearing those precious words, ‘I love you,’” the president said.

Later, former President George W. Bush, who was in office on 9/11, and then-Defense Secretary Donald Rumsfeld attended another wreath-laying at the Pentagon.

Near Shanksville, Pennsylvania, the third site where planes crashed on Sept. 11, 2001, Vice President Mike Pence credited the crew and passengers who fought back against the hijackers with protecting him and others in the U.S. Capitol that day.

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After reading part of the long list of names, Parboti Parbhu choked up as she spoke from the ground zero podium about her slain sister, Hardai. Even after nearly two decades, “there’s no easy way to say goodbye,” she said.

By now, the heritage of grief has been handed down to a new generation, including children and young adults who knew their lost relatives barely or not at all.

Jacob Campbell was 10 months old when his mother, Jill Maurer-Campbell, died on 9/11.

“It’s interesting growing up in a generation that doesn’t really remember it. I feel a connection that no one I go to school with can really understand,” Campbell, a University of Michigan sophomore, said as he attended the ceremony.

Like the families, the nation is still grappling with the aftermath of Sept. 11. The effects are visible from airport security checkpoints to Afghanistan, where the post-9/11 U.S. invasion has become America’s longest war. The aim was to dislodge Afghanistan’s then-ruling Taliban for harboring al-Qaida leader and Sept. 11 mastermind Osama bin Laden.

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Al-Qaida’s current leader used the anniversary to call for more attacks on the U.S. and other targets.

In New York, Nicholas Haros Jr., who lost his mother, Frances, reminded the audience of the al-Qaida attackers and tore into Democratic Rep. Ilhan Omar of Minnesota over her recent “Some people did something” reference to 9/11.

“Our constitutional freedoms were attacked, and our nation’s founding on Judeo-Christian values was attacked. That’s what ‘some people’ did. Got that now?” he said to applause.

Omar, one of the first Muslim women elected to Congress, has said she didn’t intend to minimize what happened on Sept. 11, and accused critics of taking her words out of context. She tweeted Wednesday that “September 11th was an attack on all of us.”

The dead included Muslims, as Zaheda Rahman underscored after reading names at ground zero. She called her uncle, Abul Chowdhury, a “proud Muslim-American man who lived his life with a carefree nature, a zeal for adventure and a tenacity which I emulate every single day.”

Others made a point of spotlighting the suffering of firefighters, police and others who died or fell ill after being exposed to the smoke and dust at ground zero.

A compensation fund for people with potentially Sept. 11-related health problems has paid out more than $5.5 billion so far. More than 51,000 people have applied. Over the summer, Congress made sure the fund won’t run dry . The sick also gained new recognition this year at the World Trade Center site, where a memorial glade was dedicated this spring.

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2 years ago