1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
amid [387]
3 years ago
12

Ronny's Pizza House is a profit maximizing firm in a perfectly competitive local restaurant market, and their optimal output is

80 pizzas per day. The local government imposes a new tax of $250 per year on all restaurants that operate in the city. How does this affect Ronny's profit maximizing decisions?
Business
1 answer:
olya-2409 [2.1K]3 years ago
3 0

Answer:

A firm maximizes its accounting profits when marginal revenue = marginal costs. In this case, the $250 tax, would increase the price of pizzas by less than 1 cent per pizza since total production = 80 pizzas x 360 days = 28,800 pizzas per year. Even if the restaurant only opens 6 days a week, its total production is very close to 25,000 pizzas. So the impact of the tax is really minimum.

If Ronny (I guess that is the owner's name) really wants to keep maximizing his profits, then he should increase the price of each pizza by 1 cent. The price increase will be minimum and very few customers will probably even notice.

You might be interested in
Please help a girl out. I will award brainliest.
SSSSS [86.1K]
The answer is C. “There is a major city 50 miles away from the region”.
7 0
3 years ago
What is the main motive behind dealer incentives?
lbvjy [14]
The main motive behind dealer incentives is to give the dealers a low price for stocking the companies products. The company that gives the biggest dealer incentive will attract more dealers to actively sell the product of that company. It can be seen in case of cars, the incentives given by the manufacturers to their dealers for stocking the cars.
3 0
2 years ago
When does the appraisal process begin?
Nookie1986 [14]
The appraisal process is a procedure of which a higher authority or someone authorized to assess the abilities and the performance of the employees. In the choices above, it begins in letter a, when the manager defines performances standards for employees because this is considered to be an orientation for the employees of which they should apply before the assessing starts. Once they have ingested the performances standards, the assessing begins, or the so called appraisal process.
7 0
2 years ago
In the text's business plan model, recognition of potentially unreliable sales forecasts and industry trends, and uncertain raw
bixtya [17]
Dont know this im sorry
8 0
3 years ago
If a firm's expected growth rate increased then its required rate of return woulda. decrease.b. fluctuate less than before.c. fl
labwork [276]

Answer:

D. possibly increase, possibly decrease, or possibly remain constant

Explanation:

If a firm's expected growth rate increased then its required rate of return would possibly increase, possibly decrease, or possibly remain constant

6 0
3 years ago
Other questions:
  • ou open a business selling art supplies and lessons. In your first month, you had the following total sales: $4,000 in paint, $2
    15·2 answers
  • A company purchased $9,100 of merchandise on June 15 with terms of 3/10, n/45. On June 20, it returned $455 of that merchandise.
    12·1 answer
  • When you are willing to pay $5 for a hamburger but you pay $4 for it, your consumer surplus for the hamburger is:?
    11·1 answer
  • Which costs are paid by the loan application fee?
    15·2 answers
  • Morganton Company makes one product and it provided the following information to help prepare the master budget:The budgeted sel
    8·1 answer
  • On January 1, Year 1, Sayers Company issued $280,000 of five-year, 6 percent bonds at 102. Interest is payable semiannually on J
    14·1 answer
  • Every person I have ever met says their favorite pizza is pepperoni pizza. Therefore, I can assume that everyone I ever meet wil
    7·1 answer
  • Building piles of documents is an efficient way to organize.<br><br> True or False
    15·1 answer
  • Portland Sardines produced $14 million worth of cans of sardines. In producing these cans of sardines, it purchased $2 million d
    5·1 answer
  • After hearing an announcement made by a major soft-drink company, the APCS Soft Drink Company has decided to hire you to write a
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!