Profit will be maximum for the firm where marginal revenue = marginal cost.
Since, the market price is fixed at $8 and therefore each additional unit of camera will be sold at $8.
Hence, marginal revenue = $8.
From the table, it is clear that cameras are manufactured in batches of 100.
Marginal cost is the cost incurred to produce one additional unit of camera. It will be calculated by taking the difference of successive variable costs (or total costs) divided by 100.
To produce 400th unit, marginal cost = (2760 - 1960)/100 = $8
Hence, profit maximising quantity isB. 400 (MR = MC)
Answer:
True
Explanation:
It is essential to know and ensure that the taxpayer lists all the sources of income before the Form 13614-C is being submitted. This is necessary for the calculation of the tax to be paid by the person. The taxpayer should also fill the Form 1099-INT and declare all other sources of income. The statement above is true.
Answer:
b. Consumers bought too many goods they could not afford.
Explanation:
In the 1920s consumption increased as mass production appeared, businesses began to offer credits to customers and people started buying things that they didn't need and that they couldn't afford. When the crisis began, people lost their jobs or their salaries were cut, consumption decrease drastically and they coudn't pay these credits.
Answer:
In order to find Gillette's value of a share we need to use the multi stage model and find what will its dividend be at the end of the 5th year
The dividend of the first 5 years can be calculated by multiplying the previous one by 1.12
Dividend 1 year from now = 0.65
Dividend 2 years from now= 0.65*1.12=0.728
Dividend 3 years from now=0.728*1.12=0.81536
Dividend 4 years from now= 0.81536*1.12= 0.913203
Dividend 5 years from now=0.91320.*1.12= 1.022788
After this the growth level will be 2% so we can find the 6th years dividend by multiplying 1.022788 by 1.02 and we will get 1.043243
Now we can calculate the share price will be after 5 years by using the DDM
D1/(R-G)
D1= 1.0432
R= 0.08
G= 0.02
1.0432/0.06= 17.38
Now in order to find the current price we need to discount this price to find the present value we can do this by using its cost of capital as the discount rate.
17.38/1.08^5
=12.98735
Explanation:
