Is it possible to be a copywriter and art director?

The monopolist's level of output is not at the minimum point of ______, meaning it will not be productively efficient.

Llana [10]

When a monopolist's level of output is not at the minimum point of <u>average total cost</u>, this means it will not be productively efficient.

<h3>What is an average total cost?</h3>

An average total cost refers to a cost derived from total fixed and variable costs divided by total units produced.

In conclusion, this cost is used to evaluate how the total per-unit cost change as a result of output

Read more about average total cost

<em>brainly.com/question/25109150</em>

3 0

2 years ago

All of the following will occur if the government places an effective price ceiling on candy bars except:

miskamm [114]

Answer:

c. there will be a surplus of candy bars.

Explanation:

A price ceiling is when the government or an agency of the government sets the maximum price for a good or service.

If a price ceiling is effective, the price ceiling is set below equilibrium price.

If price is set below equilibrium price, the quantity supplied would fall and this would lead to an excess of demand over supply. Also, scarcity of the product for which a price ceiling has been set would occur.

A black market would occur. There would be a drop in the quality of product as sellers would be trying to maximise profits.

I hope my answer helps you

6 0

4 years ago

Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that

kkurt [141]

Complete Question:

Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 40,000 parts is $130,000, which includes fixed costs of $70,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $3 per unit, and avoid 30% of the fixed costs.

Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $13,000 profit. If Harvey Automobiles makes the part, what will its operating income be?

A. 156,000 greater than if the company bought the part

B. 26,000 less than if the company bought the part

C. 26,000 greater than if the company bought the part

D. 62,000 greater than if the company bought the part

Answer:

Option C. 26,000 greater than if the company bought the part

Explanation:

<u>Option A: In House manufacturing of 40,000 parts:</u>

Variable Cost is always Relevant and is ($60,000)

The Fixed cost is always irrelevant unless it is specific fixed cost related to the decision. Hence Fixed cost is irrelevant here.

<u>Option B: If we purchase from outsiders</u>

The purchase cost of the product is variable cost hence it is relevant as it is always relevant.

Purchase Cost = $3 * 40,000 parts ($120,000)

The decrease or increase in the cost or income, due to a decision is always relevant. The decrease in cost is Opportunity income or benefits and is given as under:

Decrease in Fixed cost by 30% = $70,000 * 30% $21,000

Now the additional profit that will arise as we can manufacture additional parts of another Product B. This is only possible if we free factory space by purchasing parts of Product A from outsiders. This additional manufacturing of Product B parts will generate profit of $13,000 and thus is a relevant income here. It is also referred to as Opportunity Income.

Opportunity Income <u> </u><u>$13,000</u><u> </u>

Total Relevant Cost (<u>$86,000)</u>

<h2><u>Decision</u></h2>

The cost of option A is lower from Option B by $26000 ($86000 - $60000). Hence the operating income would be higher by $26,000 if the company manufactures in-house rather purchasing 40,000 parts from outsiders.

Option C is correct option here.

5 0

4 years ago

.Academic studies suggest that the amount people tip at restaurants is only slightly related to the quality of service, and that

AlexFokin [52]

There are various forms of market failure, though it is commonly defined in economics as a situation where the distribution of goods and service are conducted in an inefficient manner.

In the case illustrated in the question, the form of market failure that is taking place occurs in the nature of the exchange, which is due to bounded rationality. It is defined as condition commonly occurring in individuals where decision-making is based on making a satisfactory solution instead of an optimal one – this leads to irrational behaviors. A good example is the tipping behavior provided in the question.

Thus, the answer to the question is (D) Yes this could be considered a form of market failure. If consumers and markets were rational tips would be based on the quality of service.

3 0

4 years ago

Sheffield Corp. has equipment with a carrying amount of $2500000. The expected future net cash flows from the equipment are $254

ololo11 [35]

Answer:

No impairment loss would be reported

Explanation:

The computation is shown below;

Impairment loss = carrying value - recoverable amount

Where,

The recoverable amount would be the higher amount of fair market value and value in use

So the recoverable amount would be $2,545,000

Now the impairment loss is

= $2,500,000 - $2,545,000

= -$45,000

Since the impairment loss comes in negative so no impairment would be recorded

7 0

3 years ago