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Law Incorporation [45]
2 years ago
5

The inverse demand curve a monopoly faces isp= 130 - QThe firms cost curve isC(q) = 40 + 5Q1. What is the profit Maximizing solu

tion ?The​ profit-maximizing quantity is ______? ​(Round your answer to two decimal​ places.)The​ profit-maximizing price is ________​$ (round your answer to two decimal​ places.)2. What is the firms economic profit?The firm earns a profit of _____? ( round your answer to two decimal places)
Business
1 answer:
max2010maxim [7]2 years ago
6 0

Answer:

62.50 units

$3,866.25

Explanation:

The price function is:

p = 130 - Q

C = 40+5Q

Profit as a function of quantity (P(Q)) is given by:

P(Q) = Q*p(Q) - C(Q)\\P(Q) = Q*(130-Q)-40-5Q\\P(Q) = -Q^2+125Q-40

The quantity for which the derivate of the profit function is zero is the profit maximizing quantity:

P(Q) = -Q^2+125Q-40\\P'(Q) =0= -2Q+125\\Q=62.50\ units

The​ profit-maximizing quantity is 62.50 units

The economic profit for this production volume is:

P(62.5) = -(62.5^2)+125*62.5-40\\P(62.5)=\$3,866.25

The firm earns a profit of $3,866.25.

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At the beginning of Year 2, the company repurchased and retired 1,100 shares at $8.10 per share. Prepare the appropriate journal
Tema [17]

Answer:

Explanation:

We have two journal entries to be able record the repurchase and retirement of the shares

First journal to record the share repurchased

Dr Treasury stock 8,910

Cr Cash 8,910

While the second journal is to record the retirement of share repurchased:

Dr Common stock 1,100

Dr Paid-in capital common stock 2,310

Dr Retained Earning 5,500

Cr Treasury stock 8,910

To record the share repurchased:

The Treasury stock account is debited with the amount that is equals to cash paid for stock that is been repurchased, therefore, offsetting entry is credit Cash account = Number of share repurchased multiply Price purchase

= 1,100 * 8.1

= $8,910

Also, to record the retirement of share repurchased:

The common stock account is been debited at the amount = Par value multiply by Share retired

= 1 * 1,100

= $1,100

As one common stock is carried $2.1 value excess of par ( which is calculated as 168,210 / 80,100); paid-in capital account is debited by $2,310 ( 1,100 * 2.1)

The retained earning is been debited by the amount is calculated as follows,;

Number of share retired multiply by ( Price at retired - Par value - Excess of par value) = 1,100 * ( 8.1 -1-2.1) = $5,500

Treasury account is debited $8,910 to bring the balance of this account to zero as stocks repurchased are fully retired.

5 0
3 years ago
An economy is employing 2 units of capital, 5 units of raw materials, and 8 units of labour to produce its total output of 640 u
arlik [135]

Answer:

B) $.10.

Explanation:

All the cost used in the production process is called production cost.

Capital cost = Units x Cost per unit = 2 x $10 = $20

Raw Material cost = Units x Cost per unit = 5 x $4 = $20

Labor cost = Units x Cost per unit = 8 x $3 = $24

Total Cost = Capital cost + Raw Material cost + Labor cost

Total Cost = $20 + $20 + $24 = $64

Cost per unit = Total cost /  Number of units = $64 / 640 = $0.10

6 0
3 years ago
Monopolistic competitors in the food industry will often include a recyclable symbol on packaging used for their product as a me
solong [7]
It means to differentiate their product. Monopolistic competition is a sort of blemished rivalry with the end goal that numerous makers offer items that are separated from each other and subsequently are not impeccable substitutes. 
Harmony under monopolistic competition. In the short run, supernormal benefits are conceivable, however, over the long haul, new firms are pulled in into the business, as a result of low boundaries to the passage, great learning and a chance to separate.
6 0
3 years ago
Other things held constant, if a bond indenture contains a call provision, the yield to maturity that would exist without such a
zloy xaker [14]

Answer:

Other things held constant, if a bond indenture contains a call provision, the yield to maturity that would exist without such a call provision will generally be <u>lower than</u> the YTM with a call provision.

Explanation:

That is the correct answer to the question asked about bond indenture.

8 0
3 years ago
The basic formula for the price elasticity of demand is.
Kamila [148]

Answer: percentage change in quantity demanded

Explanation: the basic formula for the price elasticity

3 0
1 year ago
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