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lara [203]
3 years ago
15

Beta industries manufactures floppy disk that consumers perceive as identical to those produced by numerous other manufacturers.

Recently, Beta hired an econometrician to estimate its cost function for producing boxes of one dozen floppy disks. The estimated cost function is C=20+2Q^2.a. What are the firm's fixed costs?b. What is the firm's marginal cost?From question c to f, assume many other firms in the market sell the product at a price of $10c. How much should this firm charge for the product?d. What is the optimal level of output to maximize profits?e. How much profit will be earned?f. In the short run, should this firm continue to operate or shut down? why?
Business
1 answer:
serious [3.7K]3 years ago
8 0

Answer:

a. Fixed costs for businesses are the ones that don't depend on Q. Fixed costs= 20

b, thus. dC / dQ= d(20 + 2Q^2)/dQ= 4Q

c. Many companies say the economy competes perfectly. For such a scenario, the company is a price-taker and would demand the same $10 price as other firms on the market to sell its products.

d. Most companies expect a reasonably open market. Hence, MR= $10 in size.

Max profit: MC= MR, then 4Q= 10= > Q= 10/4= 2.5 Optimum production level to optimize profits= 2.5 units e. Profits= Sales-Expenses= price* Q-( 20+ 2Q^2)= 10* 2.5-20-2* (2.5)^2= 25-32.5 = -7.5 Profits are thus-$ 7.5 ($7.5 loss).

f. The organization will continue to survive in the short term because $7.5 losses are smaller than the $20 fixed expense. In other words, the company can pay more than its rising output expenses, and will thus continue to work in the short run.

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Ber [7]

Answer:

Stock Price is $98.70

Explanation:

given data

exercise price = $100 per share

call price = $25 per share

put price = $17 per share

mature time = 2 years

annual rate of interest = 5%

to find out

What is the stock price today

solution

we will use here Put Call Parity for find out Stock Price that is express as

C + \frac{100}{(1+r)^t} = S + P    .....................1

here C is call price and r is rate and t is time and S is Stock Price and P is put price so put all value in equation 1

C + \frac{100}{(1+r)^t} = S + P

25 + \frac{100}{(1+0.5)^2} = S + 17

solve it we get

P = $98.70

so Stock Price is $98.70

6 0
2 years ago
Euphrasia, a mixed open​ economy, was severely affected by a recession that almost paralyzed its service sector. The Euphrasian
Flura [38]

Answer:

E) Oil imports declined as countries exporting oil reduced supply.

Explanation:

Oil is extremely important for industrialized nations and since Euphrasia is a mixed open economy, we can assume that it is an industrialized nation. Oil has become the most important energy source for more than 60 years and is the raw material for manufacturing plastic.

During the 1970s and early 1980s the American economy was shattered by an increase in the price of foreign oil and a decrease in its domestic production levels. The importance of oil is also why so many modern wars have been fought over oil production and reserves.

4 0
3 years ago
Suggett Corporation's net cash provided by operating activities was $34; its income taxes were $12; its capital expenditures wer
yan [13]

Answer: Option (C) is correct.

Explanation:

Given that,

Net cash provided by operating activities = $34

Income taxes = $12

Capital expenditures = $24

Cash dividends = $7

Free Cash Flow = Cash Provided by Operating Activities - Dividends - Capital Expenditure

                           = $34 - $7 - $24

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Therefore, the company's free cash flow was $3.

3 0
3 years ago
According to theory, sales employees compensated based on commissions should be more motivated than if paid a straight hourly wa
andrezito [222]

Answer:

Expectancy Theory

Explanation:

The expectancy theory basically talks about how individuals will behave or react in a certain way because they are motivated and as a result choose to act in accordance or react to specific situations due to what they expect the results to be.

8 0
3 years ago
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The practice of making false statements about a property in order to lower its value and increase the buyer’s profit is called:
ArbitrLikvidat [17]

Answer:

Blockbusting

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The practice of making false statements about a property in order to lower its value and increase the buyer’s profit is called Blockbusting. Blockbusting is the method of convincing landlords to sell estate cheaply, which was done by the U.S. property agents and construction developers and they do this by developing terror in the people that people with different racial and class will be soon relocating in the neighborhood and hence benefiting via reselling at a more expensive cost.

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