Answer: A. equal to marginal cost where it intersects the demand curve
Explanation:
In a pure competition, the market is efficient because it balances demand and supply and gives an equilibrium price that takes both of them into account.
In this market, the price is equal to the marginal revenue of a firm and the profit maximizing level of production is where the marginal revenue intersects the marginal cost.
The efficient level is therefore where price equals marginal cost. The same goes for a natural monopoly. If economic efficiency is to be achieved, the natural monopoly's price must equal the marginal cost at the equilibrium price.
Answer:
<em> $220,000</em>
Explanation:
Given:
Effective Gross Income(EGF) : $396,000
Operating Expenses(OE) : $176,000 ( Including $4,400 reserve for replacements)
To Find Net Operating Income(NOI):
NOI = EGF - OE
NOI = $396,000 - $176,000
NOI = $220,000
So the Net Operating Income is $220,000
Answer:
More , High ( D )
Explanation:
As far as GOODS (compared to services) are concerned, there is More opportunity to correct problems due to High customer contact.
and this is because when dealing with Services instead of Goods the direct customers of services are people hence the level of accessibility to enable the prompt correction of problems that might arise is very high and its faster as well to do that
Answer with Explanation:
The decision making under the conditions of uncertainty:
Uncertainty is an unquantifiable outcome of a decision that can not be mathematically modeled whereas risk is a quantifiable outcome of a decision that can be mathematically modeled.
The expected value method helps in decision making related to uncertainty are making prudent estimates of cash flow by using expected value.
Expected value considers every outcome under uncertainty and computes all of the expected value for each outcome. The outcome that gives highest expected value is said to be best case and likewise the outcome that gives lowest expected value is said to be worst case.
Suppose that two projects gives the same expected value, then the decision will be based on the degree of uncertainty which means the project that has lowest uncertainty of returns will be our choice.
The deviation of the expected value from required return on a project can be measured as a Degree of uncertainty that helps in understanding to what extent the return will be not as per the expectation. The Precise Measurement of uncertainty can be calculated by inclusion of standard deviation to estimate expected value of the decision taken.
The expected money value is the monetary value that a particular decision will generate. In expected monetary value the decision is based on the weighted average of best case and worst case. The value derived is average thus the standard deviation would be very low which means that the calculation was precise. Decision trees are used in precise measurement of cash flow related to each expected outcome and deriving a weighted average value.
The potential benefit of innovation is the improved quality (attributes) of existing products. The correct option is A.
<h3>What is innovation?</h3>
Innovation is introducing new things and ideas.
The advantages of innovation are:
- High relative advantage
- Trialability
- observability
- Compatibility
- Low complexity
Thus, the correct option is A, improved quality (attributes) of existing products.
Learn more about innovation
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