Answer:
are costs that do not vary with production or sales level
Explanation:
Fixed cost can as well be regarded as overhead cost they are expenses in the company that does not depends on the change in the amount of goods and services produced in the company. They are time- related cost such as
salaries, property taxes, interest as well as insurance. It should be noted that fixed costs are costs that do not vary with production or sales level
Answer:
Monopolist profit maximizing price
A: $3 per gallon , total output =270 Kelvins profit = $810(801/7/2 = $405
Maria's profit = $405
B. $2.5 per gallon . Kelvin's profit =$450 Maria's profit = 337.5
C = False. At the same quantity , fall in price brings fall in revenue
Cournot Nash equilibrium
Explanation:
In a monopolist market system , price are set higher than the marginal cost as the producer enjoy the dominance of the market through the production of a unique good.
At the price of $3 , change in demand =(270-225) =45 , change in revenue = ($810-$787.50)22.5 and marginal revenue = (45/22,5) = 0.5. That forms the maximizing price for a monopolist.
On the new arrangement , price drops to $2.5 , Maria's profit =(315-45/2)2.5 = $337.5 and Kelvin's = ($787.5-337.5) = $450
Cournot Nash equilibrium is business model that explains the competition among rival companies producing similar product on the level of output produced independently.
Answer:
The reutrn on equity should be of 9.53%
Explanation:
We can solve the return on equity by considering the gordon model of dividend growth:
current dividends 2 dollars
next year dividends: current x (1 + g) = 2 x (1 + 0.06) = 2.12
Ke = 0.09533 = 9.53%
Answer:
700
Explanation:
The condition for maximizing profits is Marginal cost = Price.
1. We need to calculate the marginal cost, which is the first derivative of the total cost function.
- marginal cost = (TC=10000+0.04q2=) '
2. Now, we equalize the MC to the price and solve for q.
0.08q=56
q=56/0.08
<h2>
q=700</h2>
