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umka2103 [35]
2 years ago
7

Suppose a​ profit-maximizing monopolist is producing 12001200 units of output and is charging a price of ​$60.0060.00 per unit.

If the elasticity of demand for the product is negative 2.00−2.00​, find the marginal cost of the last unit produced.
Business
1 answer:
antiseptic1488 [7]2 years ago
6 0

Answer:

Marginal Cost = $30

Explanation:

Given that

Price = $60

Elasticity of demand = -2

Recall that

MC = P(1 + 1/Ed)

From monopolist pricing rule as a function of elasticity of demand.

Where MC = marginal cost

Ed = elasticity of demand = -2

Thus

MC = 60 (1 + 1/-2)

= 60 (1 + [-0.5])

= 60 ( 1 - 0.5)

= 60 (0.5)

= 30

MC = $30

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Answer:

Is better to continue the production of the component as currently is taking allocated overhead from other department. Buying will inccur in a financial disadvangate of 25,000

Explanation:

<u>Make</u>

Direct cost:

DM                   120,000

DL                      25,000

VMO            <u>      45,000  </u>

Total Variable:  185,000

Tracable fixed cost: 5,000

Total cost:   190,000

<u>Buy option:</u>

purchase 190,000

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Total cost: 215,000

3 0
3 years ago
Which answer applies to "fine print"?
Kay [80]

Answer:

D. All of the Above

hope this helps!

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3 years ago
What is ivan's marginal benefit if he decides to stay open for six hours instead of five hours?
Delicious77 [7]

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$550 (6 hours) - $530 (5 hours) = $20  

4 0
2 years ago
Splashdown Corporation manufactures water toys. It plans to grow by producing highminusquality water slides at a low cost that a
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Answer:

D. number of process improvements.

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The balance score card is the score card which demonstrates the level of performance through which the organisation will be able to take the correct actions, decisions.

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Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. The total value of yo
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Answer:

hope this helps

Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 21.5% and a beta of 1.70. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock? Do not round your intermediate calculations.

Old portfolio return

11.0%

Old portfolio beta

1.20

New stock return

21.5%

New stock beta

1.70

% of portfolio in new stock = $ in New / ($ in old + $ in new) = $10,000/$100,000=

10%

New expected portfolio return = rp = 0.1 × 21.5% + 0.9 × 11% =

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Explanation:

7 0
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