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liubo4ka [24]
3 years ago
8

If the market price of each camera case is $8 what is the profit-maximizing quantity? 300 units 400 units 500 units 600 units

Business
1 answer:
Serjik [45]3 years ago
3 0

Profit will be maximum for the firm where marginal revenue = marginal cost.

Since, the market price is fixed at $8 and therefore each additional unit of camera will be sold at $8.
Hence, marginal revenue = $8.

From the table, it is clear that cameras are manufactured in batches of 100.

Marginal cost is the cost incurred to produce one additional unit of camera. It will be calculated by taking the difference of successive variable costs (or total costs) divided by 100.

To produce 400th unit, marginal cost = (2760 - 1960)/100 = $8

Hence, profit maximising quantity isB. 400 (MR = MC)

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Answer:

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Explanation:

Direct labor is the workers who converted the raw material into a finished product so that the finished product is ready for sale. The wages paid to the labor are classified in the direct labor itself.

It is specially allocated to the manufacturing process so that the product could be carried forward to the next level of the process and at the end the finished product is ready

7 0
3 years ago
Assume the real rate of return is 3.37% and the inflation rate is 1.47%. Find the nominal rate of return using the exact formula
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Answer:

4.89%

Explanation:

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The nominal rate of return is computed as shown below:

= [ (1 + real rate of return) x (1 + inflation rate) ] - 1

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= 1.04889539 - 1

= 0.04889539

= 4.889539%

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Management by exception:
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Cheers.

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