Suppose that each firm in a competitive industry has the following costs: Total Cost: TC=50+1/2q^2 Marginal Cost: MC=q where q i
1 answer:
Answer:
Fixed cost = constant term i.e 50
Variable cost =
Explanation:
Data provided in the question:
Total Cost: TC =
here q is an individual firm's quantity produced
Demand QD = 160 − 4P
here P is the price and Q is the total quantity of the good
Now,
The Total cost = Fixed cost + Variable cost
here, Fixed is constant, while the variable cost varies with number of quantities being produced
Thus,
from the total cost function, we have
Fixed cost = constant term i.e 50
Variable cost =
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Answer:
The income before tax is $370450, the income tax is $111135 and the net income is $259315.
Explanation:
As the data table is not visible,online a similar question is found for which the data is attached here with.
From the given data
Service Revenue=$943,000
Interest Revenue=$127,1000
Total Revenue=Service Revenue+Interest Revenue=$1070100
Now The expenses are given as
Supplies Expense=$349,200
Repairs and Maintenance Expense =$258,300
Depreciation Expense=$60,350
Rent Expense=$ 31,800
Total Expense=Supplies Expense+Repairs and Maintenance Expense+Depreciation Expense+Rent Expense=$699650
So the income before tax is given as
Income=Total Revenue-Total Expense
Income=$1070100-$699650
Income=$370450
So the income before tax is $370450.
Now the tax is estimated at 30% as given tax rate as
Tax=Rate*Income
Tax=30%*$370450
Tax=$111135
So the income tax is $111135.
Now the Net income is given as
Net Income=Income-Tax
Net Income=$370450-$111135
Net Income=$259315
So the Net Income is $259315.
