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the answer is a
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The firm will exit or leave the industry as its not making any profits.
<h3><u>CALCULATION OF THE PROFITS</u></h3>
According to the Question,
The firm produces at P = MC
Where we know,
Q = 55 units
P = $4.78
ATC or Average Total Cost = 6.76
AVC or Average Valuable Cost = 3
P > AVC so the firm produces to minimize losses at the MC = P.
Profit = ( P - ATC ) × Q
=( 4.78 - 6.76 ) × 55
= - 108.9
The profit is - 108.9 dollars per minute.
As the firm in the industry is making losses ( a negative profit ) so it will exit the industry in the long run.
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Answer:
Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.
Explanation:
For calculating the present value, all the cost and revenue will be considered.
Original revenue = Sale of 10 million chips
10 million 
$20 = $200 million
Less: Cost = 10 million $6 = $60 million
Net Revenue = $140 million
In case of introducing new chips
Revenue will be as follows
12 million $25 + 3 million $20
= $300 million + $60 million = $360 million
Less: Costs 12 million $8 + 3 million $6
= $96 million + $18 million = $114 million
Net Revenue = $360 - 114 = $246 million
Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.
In a direct channel, the same member both produces and distributes a product or service to consumers.
<h3>What are Distribution Channels ?</h3>
Distribution channel (or supply chain) set of institutions that transfer the ownership of and move goods from the point of production to the point of consumption - consists of all the institutions and marketing activities in the marketing process.
There are two types of distribution:
Direct-occurs when the suppliers and the tourist deal directly with each other. A direct channel allows the consumer to make purchases from the manufacturer
Indirect- occurs when part or all of the functions are handled by an intermediary. A indirect channel allows the consumer to buy the goods from a wholesaler or retailer.
Therefore, we can conclude that the correct option is B.
Your question is incomplete, but most probably your full question was:
In a(n) ________ channel, the same member both produces and distributes a product or service to consumers.
a. tiered
b. direct
c. horizontal
d. vertical
e. exclusive
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