Answer:
units of output = 2 units
fixed cost = 8
Explanation:
given data
SMC = 2 + 4Q
AVC = 2 + 2Q
to find out
how many units of output will it produce at a market price and what level of fixed cost will this firm earn zero economic profit
solution
we know here that under perfect competition
so at the equilibrium here Price (P) will be = MC
P = MC = 10
and
SMC = 2 + 4Q ,
P = 2 + 4Q
10 = 2 + 4Q
Q = 2 units
and
at zero economic profit we get
TR = TC
TR = P × Q
TR = 10 × 2
TR = 20
so
TC = TFC + TVC
20 = TFC + 12
TFC = 8
because here [ TVC = AVC × Q ]
[ TVC = (2 + 2 × 2) × 2 ]
[ TVC = 12 ]
I guess the correct answer is budget surplus.
When tax revenue is higher than government expenditures, the government incurs a budget surplus.
Answer:
(a) In case when Appraisal Department has excess capacity then minimum transfer will be:
($130.21 - $7.82) = $122.39
Minimum Transfer Price = $122.39
(b) In case when Appraisal Department has no excess capacity then minimum transfer price will be:
($130.21 - $7.82) + ($163 - $130.21) = $155.18
Minimum Transfer Price = $155.18
(c) No, the management should not force to charge the Home- Loan department only $150.42.
The Fruit of the Poisonous Tree Doctrine states that evidence obtained as a result of an earlier illegality must be excluded from trial. This doctrine extends the rule to make evidence inadmissible in court if it was derived from evidence that was illegally obtained and <span>evidence obtained from illegal arrest, search or seizure is not admissible in the court of law.</span>
