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sineoko [7]
2 years ago
10

Pick Industries produces plastic toothpicks that it sells to distributors in the Southwest. During the early 1990s, the price of

the plastic it uses to produce toothpicks fell by 46 percent, due to a local glut of recycled plastic containers. Assuming that the market for plastic toothpicks most closely resembles that of perfect competition and that other firms in the industry do not experience similar cost savings in the short run, what impact would this have on the profit-maximizing output, price, and profits of Pick Industries?
Business
1 answer:
Cerrena [4.2K]2 years ago
4 0

Answer:

Other things equal, the fall in the price of plastic would shift Pic's marginal cost curve to the right. To maximize profits, Pic should increase its output. Since other firms in the industry do not enjoy the reduction in marginal costs, the market supply curve would not change and the market price of toothpicks would remain unchanged. Pic Industries would enjoy higher profits in the short-run

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Austin and Erin are willing to pay $10 and $9, respectively, for a ticket to a screening of a new movie. What is the total consu
Rina8888 [55]

Answer:

B) $7

Explanation:

The computation of the consumer surplus is shown below:

Consumer surplus = Willing to pay - Market price

For Austin, The consumer surplus = $10 - $6 = $4

For Erin, The consumer surplus = $9 - $6 = $3

So, the total consumer surplus = $4 + $3 = $7

Simply we deduct the market price from the willing to pay so that the consumer surplus can be computed

8 0
2 years ago
The internet has changed how people shop for clothes, electronics, and other goods. Because of online shopping, many retailers h
jenyasd209 [6]

Answer: B) The supply of goods like clothes will decrease.

Explanation:

All else being equal, the local retail market for clothes will see a reduction in supply for clothes. This is simply as a result of less shops offering clothes than before because some have closed down as they couldn't keep up with online retail stores.

For example, the entire supply of Jeans for the town of Jeanophia were from 5 stores with each selling 5 jeans. 3 stores have closed down due to competition from jeanyjeans.com and now only 2 stores are open which has reduced the supply from 25 jeans to 10 jeans.

8 0
3 years ago
Help pleaseeeeeeeeeeeee
valkas [14]

Answer:

Income

Explanation:

A budget shows a plan of how one will spend their income. It is, therefore, a plan of expenditure.  A budget shows total expected income on one side and projected expenditure on the other side. The budget is balanced when income and expenses are equal.

6 0
3 years ago
Which statement is true about the retail inventory method? Group of answer choices It may not be used to estimate inventories fo
mr_godi [17]

Answer:

The answer is: There are different versions of the retail inventory method.

Explanation:

There are several types of retail inventory method:

  1. the conventional (lower of average cost or market) method,
  2. the cost method
  3. the LIFO retail method
  4. the dollar value LIFO retail method

The retail inventory method is very useful for large retailers (e.g. grocery stores, hypermarkets, etc.). Its greatest advantage is that the inventory balance can be calculated without a physical count.

5 0
2 years ago
On December 31, 2018, AAA disposed an Equipment (Cost: $50,000, Salvage Value: $10,000, useful life: 4 years), which was purchas
levacccp [35]

Answer:

A Loss of $10,000

Explanation:

To calculate the depreciation using the straight line method.

Depreciation = Cost - Salvage value/ no. of years

   

       $50,000   -   $10,000/ 4 = $10,000

Annual depreciation now is:    $10,000

Net book Value (NBV) for the year of disposal i.e 2018 will be:

Cost - Accumulated Depreciation = NBV

$50,000 - $30,000 = $20,000

NBV is $20,000

but was sold for $10,000 which is a loss of $10,000

3 0
3 years ago
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