Answer:
a) he equilibrum quantity is 95 million pounds of butter and the equilbrum price is $1.20 per pound. At this level, both demand and supply is 95 million.
b) 0 or no surplus.
Explanation:
The question is in three parts
a) a. In the butter market, the monthly equilibrium quantity is million pounds and the equilibrium price is $ per pound
The equilibrum price and quantity refers to that point in sales where the quantity demanded = the quantity supplied.
Looking at the schedule, the equilibrum quantity is 95 million pounds of butter and the equilbrum price is $1.20 per pound. At this level, both demand and supply is 95 million.
b) What is the monthly surplus created in the wholesale butter market due to the price support (price floor) program?
First, what is the price floor fixed by the government = $1.00 per pound and at this rate, the demanded quantity is 101 million and the quantity supplied is 79 million pounds.
Hence, the monthly surplus = 79 million pounds - 101 million pounds = -22 million pounds
At this price, there is no surplus
Answer:
Cash Flow = $89,828.
Explanation:
Detail is given in the picture attached.
Answer:
The correct answer is letter "B": Convenience goods.
Explanation:
Intensive distribution is the act by which companies offer their products to as many stores as possible with the purpose of having the good available almost everywhere consumers go. This type of marketing strategy fits best with convenience goods such as grocery items, fuel or newspapers.
Answer:
The correct answer is option B.
Explanation:
A firm sells a product in a purely competitive market.
The marginal cost of the product at the current output of 200 units is $4.00.
The average variable cost is $3.50.
The market price of the product is $3.00.
The market price is not covering the average variable cost. In this situation, the firm must be incurring losses. To minimize losses the firm should produce less than 1,000 units at the point where marginal cost is equal to market price and the average variable cost is being covered.
