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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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One reason that some central banks try to control exchange rates is that doing so helps control inflation.A. TrueB. False

vovikov84 [41]

Answer:

A. True

Explanation:

The central bank (reserve bank, monetary authority) is the institution responsible for the monetary policy of a country or group of countries. The main purpose of the central bank is to maintain the stability of the currency and the money supply. However, central banks also have duties such as being the last credit authority of the banking sector and controlling the interest rate. In addition, the central bank may have powers, such as supervising banks and other financial institutions, against negligence and fraud. Central banks play the role of banks for private banks and the government of the country. Process checks and lend to members. Central banks keep their foreign currency in foreign currency reserves. These resources are used to fluctuate exchange rates. Usually they add dollars or euros in order to match their currencies. This is said to be strong and helps exporters keep their prices competitive. Central banks also regulate exchange rates as a way of controlling inflation. They buy and sell large quantities of foreign currency for supply and demand.

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3 years ago

Pioneer or breakthrough products:___________

lianna [129]

Answer: Option 2

Explanation:

Pioneer of breakthrough products are advanced products in the market. These products help in fulfilling the consumer needs in the market when compared to the current available products. When the breakthrough products meet consumer needs which makes their work and life easier then the consumer preferences change to these pioneer products.

The consumer preferences bring a change in the consumer products market. When modern and latest resources are available in the market with advantages such as ease of use the consumers prefer pioneer products.

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2 years ago

8. Brady Inc. reported FIFO ending inventory of $114,000 and FIFO beginning inventory of $110,000 for 2018. Inventory purchases

atroni [7]

Answer:

$232,825

Explanation:

Step 1: Calculation of cost of goods sold (COGS) under First In First Out (FIFO)

Since we know that;

Ending inventory = Beginning inventory + Purchase - COGS of FIFO

Therefore, we can rearrange to make COGS the subject of the formula and substitute the values as follows:

COGS under FIFO = Beginning inventory + Purchase - Ending inventory

= $110,000 + $237,500 - $114,000 =

COGS under FIFO = $233,500

Step 2: Calculation of COGS under Last In First Out (LIFO)

COGS under LIFO = COGS under FIFO - Rise in LIFO reserve

= $233,500 - $675

COGS under LIFO = $232,825

Therefore, the value of COGS LIFO for Brady Inc. in 2018 is $232,825.

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2 years ago

The Duerr Company manufactures a single product. All raw materials used are traceable to specific units of product. Current info

Gemiola [76]

Answer:

Direct material used= $102,000

Cost of goods manufactured= $327,000

COGS= $347,000

Explanation:

First, we need to calculate the cost of direct material used:

Direct material used= beginning inventory + purchases - ending inventory

Direct material used= 28,000 + 105,000 - 31,000

Direct material used= $102,000

Now, the cost of goods manufactured:

cost of goods manufactured= beginning WIP + direct materials used + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 40,000 + 102,000 + 130,000 + 105,000 - 50,000

cost of goods manufactured= $327,000

Finally, the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 80,000 + 327,000 - 60,000

COGS= $347,000

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2 years ago

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Naddik [55]

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3 years ago