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3 years ago

Patents A. always increase total welfare. B. are a form of trade secret. C. reduce deadweight loss. D. create monopoly power.

Business

1 answer:

kondaur [170]3 years ago

7 0

Answer: Creates monopoly power

Explanation: A patent can be defined as an intangible asset the gives its holder the right that no other person in the world can use, sell or produce the unique good or service that has been patented by its inventor.

Thus, the right to produce or use a specific invention by a single person can lead to monopoly in that particular industry.

Hence from the above we can conclude that the right answer is option D.

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The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. The

Mazyrski [523]

Answer:

$1,650,000

Explanation:

Preparation of the lower portion of the 2021 income statement .

2021 Income from continuing operations before income taxes5,800,000

Income tax expense(1,450,000)

($5,800,000 × 25 %)

Income from continuing operations4,350,000

Discontinued operations:

Loss from operations of discontinued component(3,600,000)

Income tax benefit 900,000

(25*3,600,000)

Loss on discontinued operations(2,700,000)

Net income$1,650,000

(4,350,000-2,700,000)

Therefore the the lower portion of the 2021 income statement is $1,650,000

5 0

3 years ago

A company manufactures various sized plastic bottles for its medicinal product. The manufacturing cost for small bottles is $67

VLD [36.1K]

Answer:

The company should buy from an outside source rahter than manufacturing because each bottle manufactured costs $5 more.

Explanation:

Differential Analysis

Make Buy

Manufacturing Cost per bottle $ 67

Purchasing Cost per bottle $35

Freight per bottle $ 5

Fixed Costs $ 22

Total $ 67 $62 

The company should buy the bottles from the outside source because the manufacturing costs are higher than the purchasing costs and the fixed costs.

The fixed costs are the irrelevant costs that will continue whether bottles are manufactured or purchased.

6 0

3 years ago

Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased fr

andreyandreev [35.5K]

Answer:

Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased from 4.8% to 6.2%. The sacrifice ratio is:______

d. none of the above

Explanation:

a) Data and Calculations:

Old inflation rate = 3%

New inflation rate = 1.6%

Old unemployment rate = 4.8%

New unemployment rate = 6.2%

Ratio of old inflation rate to old unemployment rate = 3 : 4.8 = 0.625

Ratio of new inflation rate to new unemployment rate = 1.6% : 6.2% = 0.258

Sacrifice ratio = Difference between the two ratios = 0.367 (0.625 - 0.258)

b) The sacrifice ratio is the difference between the old ratio and the new ratio of inflation rate to unemployment rate.

6 0

3 years ago

Month Maintenance Machine Health Number of Shipping Units

8_murik_8 [283]

Answer:

1. Variable cost = Shipping costs

Fixed cost = Health Insurance

Mixed cost = Maintenance costs

Shipping costs are variable because a unit shipped costs $3.60. The total shipping cost for each month varies according to the units shipped in the month.

Health Insurance costs are fixed as there is no change in cost notwithstanding the number of employees in each month. The total health insurance cost remains the same every month.

Maintenance costs are mixed for each month, as there is a fixed element and a variable element.

2. Cost function for each cost:

Maintenance = $4,200 + $2.10 per machine hour

Health Insurance = $8,600

Shipping cost = $3.60 per unit

3. Cost function = $12,800 + $2.1m + $3.6s

where m = machine hours

and s = units shipped

4. The total operating cost for the month

= $46,040

Explanation:

a) Data and Calculations:

Month Maintenance Machine Health Number of Shipping Units

costs Hours Insurance Employees Costs Shipped

January 4500 165 8600 68 25778 7160

February 4452 120 8600 75 29664 8240

March 4600 230 8600 92 28674 7965

April 4850 318 8600 105 23058 8405

May 5166 460 8600 89 21294 5915

June 4760 280 8600 87 33282 9245

July 4910 340 8600 93 31428 8730

August 4960 360 8600 88 30924 8415

September 5070 420 8600 95 25110 6975

October 5250 495 8600 102 25866 7185

November 5271 510 8600 97 20124 5590

December 4760 275 8600 94 34596 9610

Cost Function for each cost:

Maintenance cost:

Machine Cost

Hours

November 510 5271

February 120 4452

Difference 390 819

Variable cost = $2.10 (819/390)

Fixed cost = $4,200 ($5,271 - ($2.10*510))

Health Insurance:

Fixed cost = $8,600

Shipping cost:

Variable cost = $3.60 per unit

Cost function = $4,200 + $2.10m + $8,600 + $3.60s

= $12,800 + $2.1m + $3.6s

February cost = $12,800 + $2.1(120) + $3.6(8240)

= $12,800 + $252 + $29,664

= $42,716

IF:

Machine hours = 400

Employees = 80

Shipped units = 9,000

The total operating cost for the month will be:

Cost function = $12,800 + $2.1m + $3.6s

= $12,800 + ($2.1 * 400) + ($3.6 * 9,000)

= $12,800 + $840 + $32,400

= $46,040

4 0

3 years ago

Ashley is considering the purchase of a stock that has just paid a dividend of $0.72, today. The dividend is expected to grow at

arlik [135]

Answer:

$10.28

Explanation:

Step 1. Firstly we use the of the The dividend discount model (DDM)

This calculation is: D1 = D0 x (1 + g)

D1 = $0.72 x (1 + 2.8%) = $0.74.

Where

Do = Dividend now

D1 = Dividend in year 1

g = growth

Step 2 Next, using the Gordon Growth Model,

Price per share is found to be D(1) / (r - g)

Price = $0.74 / ( 10% - 2.8%) = $10.28

where:

Do = Dividend now

D1 = Dividend in year 1

g = growth

r = required return

7 0

3 years ago