Answer:
$3 per unit
Explanation:
In short run a monopolist and competitive firm try to maximize their profit and minimize costs until the the marginal revenue equals to the marginal cost.
In this question the average variable cost is lower than the marginal cost the difference between both is the profit for the short run.
Economic profit = Cost saving
Economic profit = Marginal Cost - Average variable cost
Economic profit = $8 - $5
Economic profit = $3
Answer:
The correct answer is C)
Explanation:
Whether or not companies in the industry expanded their capacity is really not of much concern. What should concern management are the other factors:
- Forecasted Demand Vs Actual Demand: This tells us what has happened in the market
- Forecasted Growth in Demand: This tells us what might happen in the market
- Industry-wide capacity to meet demand is critical information: This tell us what other companies are doing and how it is shaping the market. That is, is the market saturated or not.
- If beginning inventories are very high, in each of the regions reported, installing additional production capacity is not a very sound business decision.
Cheers!
The feature of the insurance contract that is being described above is the aleatory contract. It is the type of contact where the individual that has been involved can't handle or control the event that could happen to him or her. It is a way of having uncertain events happening in the individual such as death or natural disasters that she or he could face.
Answer:
The correct answer is b. Cash Cow.
Explanation:
Multinationals look beyond their core business for additional sources of income to increase their income statement. Secondary income is those from products or services that differ from the main ones within a business. And despite their name, they can play a leading role in a brand's strategy and can give a vital boost to a company's revenue.
