All categories

3 years ago

Demand and cost information for a monopoly

Business

1 answer:

sattari [20]3 years ago

8 0

Question:

Please see the Demand and Cost information reproduced in the attached table

Answer:

The correct choice is A)

Profit if maximized where price is equal to $20.

At this price, MR = MC.

Please see the attached PDF.

Explanation:

The profit-maximizing choice for the monopoly will be to produce at the quantity where marginal revenue is equal to marginal cost:

That is, the point where MR = MC.

If the monopoly produces a lower quantity, then MR > MC at those levels of output, and the firm can make higher profits by expanding output.

Cheers!

You might be interested in

A gardener has three herb beds she wishes to plant in a design that consists of three equilateral triangles laid out in such a w

densk [106]

The design is shown in the attached picture. An equilateral triangle has sides that have equal measurements. On the other hand, a vertex is the terminal point of at least two line segments. Therefore, when you join three equilateral triangles sharing a common vertex, that simply means that they have a common point.

8 0

3 years ago

Mikey initially invested $2,400 in a company and has held this investment for 3 years. He sold the investment after 3 years for

Tanzania [10]

Answer:

499.80

Explanation:

There is no 39.6% tax bracket, the highest marginal tax is 37%. But we can assume that Mikey had to pay 39.6% in taxes which means that he is in the seventh tax bracket (highest). Since he is classified under the highest tax bracket, he will also pay the highest capital gains rate which is 20%.

Mikey's long term capital gain = $4,950 - $2,400 = $2,550

if he paid regular income taxes = $2,550 x 39.6% = $1,009.80

since he pays capital gains taxes = $2,550 x 20% = $510

That means he saves $1,009.80 - $510 = 499.80

3 0

3 years ago

What is the value of a put option at expiry if the stock price is 'S' and the exercise price is 'X'?

Setler [38]

Answer:

A put option is out of the money if the strike price is less than the market price of the underlying security. The holder of an option contract can exercise the option at any time before expiration.

Explanation:

hope this helps if not please let me know

6 0

2 years ago

Depending on the style of the wedding gown dash– and the size of the bride dash– a wedding dress custom-designed and sewn in j

Step2247 [10]

<span>These would be the variable costs. Since the dress uses up to a specified amount of each of these elements, the costs can vary depending on the size of the gown and the person wearing the gown. Variable costs, unlike those that are fixed, are able to change based upon outside factors.</span>

5 0

3 years ago

You plan to borrow $40,000 at a 6% annual interest rate. The terms require you to amortize the loan with 7 equal end-of-year pay

STALIN [3.7K]

Answer:

Interest for second year $2,114.08

Explanation:

given data

loan Amount = $40,000.00

Interest rate r = 6.00%

time period t = 7

solution

we get here first Equal Monthly Payment EMI that is express as

EMI = $\frac{P \times r \times (1+r)^t}{(1+r)^t-1}$ ................1

here P is Loan Amount and r is rate and t is time period

put here value and we get

EMI = $\frac{40000 \times 0.06 \times (1+0.06)^7}{(1+0.06)^7-1}$

EMI = $7165.40

now

we get here interest for second year that is

Closing balance at year 1 = opening balance + Interest - EMI Payment

Closing balance at year 1 = $40,000 + $2400 - $7165.40

Closing balance at year 1 = $35234.60

so Interest for second year $2,114.08

8 0

4 years ago