All categories

3 years ago

The marginal revenue curve for a monopolist__________.

Business

1 answer:

Gala2k [10]3 years ago

8 0

Answer:

C. Becomes negative when output increases beyond some particular level.

Explanation:

Monopoly occurs when there is a single firm or individual selling a particular good or rendering a particular services. In this situation, the monopolist is the price maker and has extensive market control.

However, the Marginal revenue curve of a monopoly is negatively sloped and lies below average revenue.

This is because take for instance, a firm produces and Sells biscuit for $4. At that price, buyers are willing to buy not more than 10. However, if the firm wants to increase quantity sold from 10 to let say 15, they will need to lower the prices. Now in doing so, the marginal revenue becomes negative. This is as a result of the reduction in price in order to sell more quantity. Remember that marginal revenue is the revenue gained by producing one extra unit of product.

So, in reality, the firm actually increases in total revenue because they end up selling more, but also reduces the marginal revenue while doing so.

You might be interested in

Hill Corporation issued $2,100,000 of 8% bonds at 98 on January 2, 2019. Interest is paid semiannually on June 30 and December 3

Butoxors [25]

Answer:

Hill Corporation

Journal Entries

March 31, 2022:

Debit Bond Liability $2,247,000

Debit Interest Payable $42,000

Credit Cash $2,289,000

To record the recall of the bonds, including accrued interest.

Explanation:

a) Data and Calculations:

January 2, 2019: Face value of bonds issued = $2,100,000

Proceeds from the issue of the bonds at 98 = 2,058,000

Discount from the issue = $42,000

Semi-annual amortization under straight-line = $2,100 ($42,000/20)

Coupon interest rate = 8% with payment made semiannually

Annual interest payment = $168,000 ($2,100,000 * 8%)

Semiannual interest payment = $84,000 ($2,100,000 * 4%)

Bonds duration = 10 years

March 31, 2022 Recall price of 107 = $2,247,000

Accrued interest from January 1 to March 31 = $42,000

Total payment to bondholders = $2,289,000

5 0

2 years ago

What is the difference between income and cash flow?

Deffense [45]

Its B. or C.
If you have any other questions, please contact me on Brainly.com and I will be happy to answer.
-Diane.

3 0

3 years ago

When LIFO is used with the periodic inventory system, cost of goods sold is assigned costs from the most recent purchases at the

bija089 [108]

Answer:

False

Explanation:

The assertion is false that when LIFO is used with the periodic inventory system, cost of goods sold is assigned costs from the most recent purchases at the point of each sale, rather than from the most recent purchases for the period.

Under this method it is <u>at the end of the accounting year that the Inventory account is adjusted to equal the cost of the merchandise that is unsold.</u>

It is important to note that under LIFO periodic (not LIFO perpetual) <u>we wait until the entire year is over before assigning the costs. </u>Then we flow the year's last costs first, even if those goods arrived after the last sale of the year.

4 0

3 years ago

Which of the following is not a typical adjustment made to the income statement for projection purposes?

ankoles [38]

Answer:

The correct answer is b. Adjusting revenues to only include organic revenue growth.

Explanation:

One of the quantitative planning techniques is the projection of financial statements or also called pro forma statements.

The applications that can be had among others are the following:

Know how the year will end for tax purposes in terms of income and deductions in order to make decisions before the end of the year.

Another application will be to know the external financing needs for the period you want to know.

The most common and practical method of projecting financial statements is based on sales.

7 0

3 years ago

When analyzing the key elements of a country's economic environment, it is best to apply a systems perspective?

Alenkasestr [34]

True. When you analyze the key elements of a country's economic perspective environment, it is best to apply a systems perspective. When you follow the systems perspective you should be taking all of the behaviors, attributes and actions of a system when it's in its environment. instead of individualizing people and things within, it's an overall evaluation of the system.

4 0

3 years ago