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3 years ago

7

A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. the price of each good is $10. calculate

the firm's short-run profit or loss. loss of $6,000 profit of $6,000 profit of $30,000 there is insufficient information to answer the question.

1 answer:

Inessa [10]3 years ago

8 0

Here is your answer: <span>loss of $6,000.</span>

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4 years ago

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The marginal social benefit received from pollution is equal to its marginal social cost in the market for highly polished glass

Natasha_Volkova [10]

Answer:

. firms in the market produce the socially optimal level of pollution

Explanation:

Externality is when the activities of economic agents affect third parties not involved in production or consumption.

Negative externality is when the marginal social cost is greater than the marginal social benefit. In this case, firms in the market produce too much pollution and society's well-being can be improved if the quantity of pollution decreases.

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I hope my answer helps you

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4 years ago

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A focused low-cost strategy ...A) cannot be sustained over time unless the focuser is aggressive in entering other segments wher

alexandr1967 [171]

Answer:

The correct answer are A and E.

Explanation:

Cost leadership is where the company intends to be the lowest cost producer in its industrial sector. The company has a broad picture and serves many segments of the industrial sector, and can still operate in related industrial sectors. The breadth of the company is often important for its cost advantage. The sources of cost advantages are varied and depend on the structure of the industrial sector. They can include the persecution of economies of scale of own technology, preferential access to raw materials.

A successful cost leadership strategy is disseminated throughout the company, as evidenced by high efficiency, low overhead, limited benefits, waste intolerance, thorough review of budget requests, extensive control elements, rewards linked to cost concentration and extensive employee participation in attempts to control costs.

Some risks of following cost leadership is that competitors could mimic the strategy, decreasing the profits of the industry in general; that technological advances in the industry could make the strategy ineffective or that the interest of the buyers could be diverted towards other characteristics of differentiation besides the price.

4 0

4 years ago

Carol expects to receive $1,000 at the end of each year for 5 years. The annuity has an interest rate of 10%. The present value

Gre4nikov [31]

Answer:

$3,791

Explanation:

Given that

Expected amount received = $1,000

Number of years = 10 years

Rate of interest = 5

So, the present value of this annuity would be

= Expected amount received × PVIFA factor at 5 years at 10%

= $1,000 × 3.7908

= $3,791

Refer to the PVIFA table

Simply we multiplied the expected amount received by the PVIFA factor

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3 years ago

Howard Weiss, Inc,. is considering building a sensitive new radiation scanning device. His managers believe that there is a prob

SpyIntel [72]

Answer:

<u>Consider the following information</u>

Probability of ATR coming up with a competitive product is 0.35

If ATR does not come up with a competitive product and H adds an assembly line, the profit is $60,000

If it adds an assembly line and ATR adds the product, the profit is $20,000

If H adds a new assembly but ATR does not come up with a competitive product, the profit is $600,000

If ATR does not enter the market, the loss for H is $120,000

<u>A) Expected value for the add assembly line option: </u>

The company would get a profit of $60,000 if ATR does not come up with a competitive product. If ATR comes up with a competitive product and H adds an assembly line, the profit is $20,000.

Probability of not coming up with a product is 0.65 (1-0.35)

Calculate the value if it does not come up with a new product line and H adds an assembly line as follows:

Value if it does not come up with a new product = 0.65 x $60,000

= $39,000

Calculate the value if it comes up with a new product line and H adds an assembly line as follows:

Value if it does come up with a new product = 0.35 x $20, 000 = $7,000

Calculate the expected value as follows:

Expected value = S39000 + $7000

Expected value =$46,000

<u>Expected value for build new plant option: </u>

If H adds a new assembly but ATR does not come up with a competitive product, the profit is $600,000

If ATR does not enter the market, the loss for H is $120,000

Calculate the value if H adds a new assembly but ATR does not come up with a competitive product as follows:

Value if it does not come up with a new product = 0.65 x $600000

= $390, 000

Calculate the value if ATR does not enter the market:

Value if it does not compete in market = 0.35 x -$120000 = -$42, 000

Calculate the expected value as follows:

Expected value= $390,000 - $42,000

Expected value =$348,000

The expected value of building a plant is more than the expected value of adding product line. Therefore, the best alternative is to build the plant.

<u>B) Calculation of expected value of perfect information (EVPI): </u>

EVPI = 0.65 x $600,000 + 0.35 x $120,000

EVPI = $390,000 + $42,000

EVPI =$432,000

<u>Calculation of value of return: </u>

Value of return = Value of perfect information - Maximum EMV

Value of return =$432,000 - 348,000

Value of return =$84,000

4 0

4 years ago