Answer:
$60 to $70; 20 units to 25 units
Explanation:
The production point for the monopolist is where the marginal revenue is equal to the marginal cost,
For first demand curve,
P = 100 - 2Q
MR = 100 - 4Q, the MR curve is double sloped than the demand curve
MC = 20
Now, Equating Marginal revenue with marginal cost,
100 - 4Q = 20
4Q = 80
Q = 20
P = 100 - (2 × 20)
= 60
For second demand curve,
P = 120 - 2Q
MR = 120 - 4Q
MC = 20
Now, Equating Marginal revenue with marginal cost,
120 - 4Q = 20
4Q = 100
Q = 25
P = 120 - (2 × 25)
= 70
So, the quantity increases from 20 units to 25 units and the price increases from $60 to $70.
Answer:
The correct answer is A
Explanation:
Acquisition and Payment Cycle, also called as the PPP cycle for which the payments, purchases and payables, is mainly comprise of the two classes of the transaction. This cycle is regarding the payables and to pay off the payables with cash.
Acquisition and payment of the long lived assets, which are those assets, the business retain for at least one year. The revenue will not be included in the cycle because it is related to the payables.
