The correct answer is any amount higher than $5,400.
First, you need to solve the break even point of sales when Chris will earn the exact same amount by plan a or plan b. The following equation will solve this problem, with x being the amount of sales.
$360 + .09x = $630 + .04x
First, subtract .04x from both sides:
$360 +.05x = $630
Next, subtract $360 from both sides:
.05x = $270
Finally, divide both sides by .05:
X = $5,400
At $5,400 Chris will earn the same about of pay, regardless of which plan they are on. Since the commission percentage is higher on plan a, Chris is better off having plan a when sales are higher than $5,400. At this point Chris is earning 9% commission, rather than 4% in plan b.
Answer:
c.the producer charges a price greater than $4.50.
Explanation:
The producer charges a price greater than $4.50. In monopolistic competition the demand curve lies above the marginal revenue curve. Price is determined by the demand curve and in this particular case price should be greater than marginal revenue curve meaning price is greater than $4.50 . Therefore the correct answer is c.the producer charges a price greater than $4.50.
Country M's firms are likely to use a <u>higher </u>degree of financial leverage than U.S. firms. The cost of capital will likely be <u>lower </u>than that of the U.S. firm.
<h3>What is financial leverage?</h3>
Financial leverage is known to be the use of borrowed money that is a debt to handle or finance the buying of assets with the view that the income or capital gain or profit from the new asset will be more than the cost of borrowing.
Note that Country M's firms are likely to use a <u>higher </u>degree of financial leverage than U.S. firms. The cost of capital will likely be <u>lower </u>than that of the U.S. firm.
Learn more about financial leverage from
brainly.com/question/17099821
#SPJ12
Answer: Buyers in the business - to - business markets are more rational than buyers in the consumer markets.
Explanation: Business - to - business (B2B) is sales made between businesses, from one business to another, instead of sales made to customers like in a business - to - consumer market. B2B markets are more rational because of a number of factors that push them to make more risk averse decisions. This is because these decisions affect businesses overall, instead of individuals at large. B2B markets need to make more sound and thought out decisions because they have a greater duty and responsibility to their business and its operations. This forces B2B markets to be more rational in their thinking than consumers.
Answer:
Marginal cost equals marginal revenue.
Explanation:
Profit maximization states that firms must operate at a level of output where marginal costs = marginal revenue.
If the firm produces less that that, they will not be making the maximum profit because they could still produce more and make more money.
If the produces more, they will be losing money because cost will be higher than revenue.
The spot on a graph where marginal costs equal marginal revenue is the "sweet spot" where profits are maximized.