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natali 33 [55]
3 years ago
7

A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in it

s relevant market. Instructions: Enter your responses rounded to the nearest two decimal places. a. What price does this firm charge its customers
Business
1 answer:
MrRissso [65]3 years ago
7 0

Answer:

$116.28

Explanation:

This can be calculated as follows:

Mark up = [1 ÷ (1 - Lerner index)]

Price = Mark-up × Marginal cost

        = [1 ÷ (1 - 0.57)] × $50

Price = [1 ÷ 0.43] × $50 = $116.28  

Therefore, the price this firm will charge its customers is $116.28.

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Answer:

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ournalize the entries to record the following: June 1 Established a petty cash fund of $200. 30 The amount of cash in the petty
Keith_Richards [23]

Answer:

The journal entries are as follows:

(i) On June 1,

Petty cash A/c    Dr. $200

To cash                                 $200

(To record petty cash established)

(ii) On June 30,

Postage A/c             Dr. $25

Entertainment A/c   Dr. $100

Miscellaneous A/c   Dr. $20

To cash short and over A/c                 $2

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What are the primary advantages to owning a franchise?
Volgvan

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