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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.

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Coronado Industries began the year with 12 units of marine floats at a cost of $11 each. During the year, it made the following

Leni [432]

Answer:

Explanation:

For computing each part, first we have to determine the sale units i.e

= (Opening units + purchased units) - closing units

= (12 units + 27 unit + 20 units + 25 units) - 30 units

= 54 units

a. The cost of goods sold under FIFO is

Since 54 units are sold and in this starting units would be considered

So 12 units would be taken at $11 each, 27 units would be taken at $15, and the remaining units i.e. 15 units would be taken at $20

So,

= 12 units × $11 + 27 units × $15 + 15 units × $20

= $132 + $405 + $300

= $837

b. The cost of goods sold under LIFO is

Since 54 units are sold and in this ending units would be considered

So 25 units would be taken at $23 each, 20 units would be taken at $20, and the remaining units i.e. 9 units would be taken at $15

So,

= 25 units × $23 + 20 units × $20 + 9 units × $15

= $575 + $400 + $135

= $1,110

c. The average unit cost is

= (12 units × $11) + (27 units × $15) + (20 units × $20) + (25 units × $23) ÷ (12 units + 27 units + 20 units + 25 units)

= ($132 + $405 + $400 + $575) ÷ (84 units)

= $18 per unit

d. The cost of goods sold under the average cost is

= $18 per unit × 54 units

= $972

6 0

2 years ago

Selling with criminal negligence alcoholic beverage to a minor is a

Verdich [7]

That crime would be considered a Class A misdemeanor.

7 0

3 years ago

Read 2 more answers

If a bank depositor withdraws $1000 of currency from an account, what happens to bank reserves, checkable deposits, and the mone

shusha [124]

Answer:

a) reserves fall by $1,000, checkable deposits fall by $10,000, and the monetary base remains unchanged

Explanation:

The bank reserves will decrease by the same amount that the client withdrew from the bank, in this case $1,000.

Since the required reserve ratio for checkable deposits is 10%, then the checkable deposits will decrease by 10 times the amount withdrawn from the bank ($1,000 x 10 = $10,000).

The monetary base remains unchanged since the money is still out there in the economy, it only changed from being in the bank to being in the client's pocket.

6 0

3 years ago

Which of the following will probably earn a higher level income?

aleksley [76]

In my opinion D. a female accountant with a masters degree in business administration, will earn a higher level of income. <em>Explanation- if she has a masters then they may accept her in jobs other people are not able to get without a masters, they may also pay her higher because of it.</em>

<h3>Hope this will help- for more help follow me, or contact me</h3>

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3 years ago

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A company received a bill for newspaper advertising services received, $400. The bill will be paid in 10 days. How would the tra

Aleksandr-060686 [28]

Debit Advertising expense $400, credit accounts payable 400.

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3 years ago