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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.

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Functional job analysis is the practice of examining job requirements and assigning a suitable candidate for that job or examining a candidate's qualifications and skills and assigning a suitable job to that candidate. It also works in reverse by not matching the wrong candidate with the job or vice versa. An obvious example is not hiring someone with no hands to do any job that requires lifting things. With only two types of jobs in a small business, this is not a difficult proposition. In a large company with thousands of people doing hundreds of different jobs, it can become a Gordian knot. It is up to the functional job analyst to become Alexander with the sword.

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2 years ago
Mallard Corporation uses the product cost concept of product pricing. Below is cost information for the production and sale of 4
boyakko [2]

Answer:

d. 96,000

Explanation:

Provided required rate of return on investments of $800,000 = 12%

Now desired profit = $800,000 X 12% = $96,000

therefore when fixing the price per unit this profit shall be added, and then reverse calculation is done.

With this we can get the desired profit.

At the last the total of cost and profit shall be divided by number of units to get the selling price per unit.

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3 years ago
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Devin is a landscaper who needs to prepare different types of grass seed for his customers' yards. Bluegrass seed costs $2.00 pe
IgorLugansk [536]

Answer:

7 pounds

Explanation:

To solve this we need to use simultaneous algebraic equations.

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So the amount of bluegrass seed is 7

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4 years ago
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