If one wants to determine the selling price of a product using the total cost method, the management should use Total product costs plus a markup.
<h3>What is total cost method?</h3>
When using the total cost method, the company takes into account the full cost of producing the good in question. This includes total product cost only.
A markup is then added to the total cost to find a suitable selling price that allows for a projected level of profit.
Find out more on the total cost method at brainly.com/question/6480601.
Profit is maximized when Q = 4 and P = $40, with maximum profit = $90.
<u>Explanation:</u>
(a) (i) Marginal cost (MC) = Change in Total cost (TC) by Change in output (Q)
(ii) Total revenue (TR) = Price (P) into Q
(iii) Marginal revenue (MR) = Change in TR by Change in Q
(iv) Profit = TR - TC
Therefore:
Q TC MC P TR MR PROFIT
0 25 60 0 -25
1 40 15 55 55 55 15
2 45 5 50 100 45 55
3 55 10 45 135 35 80
4 70 15 40 160 25 90
5 90 20 35 175 15 85
6 115 25 30 180 5 65
7 145 30 25 175 -5 30
8 180 35 20 160 -15 -20
9 220 40 15 135 -25 -85
10 265 45 10 100 -35 -165
When Q = 4, MR = $25 and MC = $15, so MR > MC. When Q = 5, MR = $15 and MC = $20, so MR < MC. Therefore,
Profit is maximized when Q = 4 and P = $40, with maximum profit = $90.
(b) In the long run, new firms will enter the market by being attracted by positive short run profit. Therefore in long run, demand for individual firm will decrease, price for individual firm will decrease and profit will decrease until each existing firm earns zero economic profit.
Answer:
Grains occupy slightly more than <u>one-fourth</u> of the plate. The message to make half your grains <u>whole</u> is stressed throughout accompanying consumer-education materials.
Explanation:
Answer:
The correct option is (b).
Explanation:
The regression equation to predict the bank's charges (Y) measured in dollars per month for services rendered to local companies based upon the company's sales revenue (X) measured in millions of dollars is:
The <em>y</em>-intercept of the line is, -3100.
The slope of the line is, 27.
The <em>y-</em>intercept of a regression line is defined as the average value of the dependent variable when the independent variable value is 0.
The dependent variable, in this case, is the bank's charges and the independent variable is the company's sales revenue.
As the company's sales revenue cannot be $0, the <em>y</em>-intercept cannot be interpreted.
Thus, the correct option is (b).
