Answer:
The answer is C. can earn profits or incur losses in the short run.
Explanation:
A monopolist maximizes profit or minimizes losses by producing that quantity that corresponds to when marginal revenue = marginal cost. However, if the average total cost is above the market price, then the firm will incur losses, equal to the average total cost minus the market price multiplied by the quantity produced
Answer: Quantity of pens fall, Change in price ambiguous
Explanation:
The new educational study has proven that the practice of writing, erasing, and rewriting improves students' ability to process information, leading parents to steer away from pen use in favor of pencils. This will lead to a fall in the demand for pens, shifting its demand curve to the left.
Moreover, the price of plastic, an important input in pen production, has increased considerably. This will increase the cost of production of pens, inducing producers to reduce pen supply in the market. The supply curve shifts up to the left.
Both these shifts lead to a fall in the quantity of pen in the market. However, the effect on price cannot be determined as it depends on the magnitude of the two shifts.
Answer:
The answer is: TRUE
Explanation:
The marketing mix of a company includes the four Ps; place, product, price and promotion. The marketing mix defines the company's marketing strategy.
While the marketing plan is how the marketing strategy will be carried out and executed: e.g. how much should a product cost, how will our product be promoted, etc.
D(p) = 4040 - 60p
where
p = price.
We want to create a function D() such that D(4) = 3800 and D(9) = 3500. The basic formula will be that of a line in slope intercept form. Picking a line since we've only been given 2 data points and 2 points define a line and because we've been asked for a "linear demand function". The basic form for a line in slope intercept form is:
y = ax + b
where
a = slope
b = y intercept
Let's calculate the slope which is the difference in y divided by the difference in x, so
(3500 - 3800)/(9-4) = -300/5 = -60
So the equation so far is:
y = -60x + b
Now to calculate b. To do so, just substitute a known x and y pair. So
y = -60x + b
3800 = -60*4 + b
3800 = -240 + b
4040 = b
And we have the equation:
y = -60x + 4040
So the demand function is
D(p) = 4040 - 60p
where
p = price.
Answer: <em><u>Deciding whether or not to open a new store is a capital budgeting decision.</u></em>
Capital budgeting is the process in which a enterprise is set about to measure possible leading investments.
∴ <em><u>Deciding whether or not to open a new store is a capital budgeting decision.</u></em>