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Bingel [31]
3 years ago
13

If a monopolistically competitive firm's marginal cost increases, then in order to maximize profits, the firm will:

Business
1 answer:
Serjik [45]3 years ago
7 0

Answer:

A. reduce output and increase price.

Explanation:

In the case of monopolistic firm at the time of profit maximization, the marginal revenue should be equivalent to the marginal cost i.e.

Marginal revenue = Marginal cost

When the marginal cost rises, the cost of generating an additional unit is also rise to equate MR and MC and at the same time the output would be decreased and the price is increased also the price is more than its marginal cos

Therefore the option A is correct

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A steel company manufactures heavy-duty brackets for the shelving industry. The company has budgeted for the production and sale
alexandr402 [8]

Answer:

Contribution margin per unit = $11.90

Explanation:

Given:

Total unit sale = 1,000,000

Unit selling price of a bracket = $22.50

Direct material required = 4 pounds per unit  

Direct labor required = 0.15 hours per unit

Cost of material per pound = $1.75

Direct labor cost per hour = $9.00

Total variable selling cost = $2,250,000

Find:

Contribution margin per unit = ?

Computation:

Direct material per unit = 4 pounds per unit × $1.75

Direct material per unit = $7

Direct labor per unit = 0.15 hours per unit × $9.00

Direct labor per unit = $1.35

Variable selling cost per unit = Total variable selling cost / Total unit sale

Variable selling cost per unit = $2,250,000 / 1,000,000

Variable selling cost per unit = $2.25

Contribution margin per unit = Sales per unit - Variable cost per unit

Contribution margin per unit = Sales per unit - [Direct material per unit + Direct labor per unit + Variable selling cost per unit]

Contribution margin per unit = $22.50 - [$7 - $1.35 - $2.25]

Contribution margin per unit = $22.50 - [$10.6]

Contribution margin per unit = $11.90

4 0
3 years ago
Explain the concepts of unitization and cube utilization. how are they related to benefit reducing transportation costs?
Sliva [168]

Cube utilization is the calculation which determines the total space used in storage.

Cube utilization is expressed as a percentage between 0% - poor and 100% - excellent, accordingly. So if you have filled every available spot in your warehouse with product, then you have 100 percent warehouse cube utilization.

Cube utilization is related to benefit reducing transportation costs, as effective cube utilization significantly lowers freight and supply chain costs. Cubing and weighing equipment helps companies make better use of their warehouse space, cut shipping costs and reduce errors.

Hence, in order to improve cube utilization, products should be shipped in bulk form to avoid packaging.

To learn more about transportation costs here:

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6 0
1 year ago
The current net profit of sigma inc. is $8 million, the market price of the stock is $65, and sales is $50 million. the net prof
IRISSAK [1]

The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue.

It is the ratio of net profits to revenues for a company or business segment. Net profit margin is typically expressed as a percentage but can also be represented in decimal form.

<h3>How do we calculate net profit margin?</h3>

Net profit margin is calculated by dividing the net profits by net sales, or by dividing the net income by revenue realized over a given time period.

<h3>What is good net profit ratio?</h3>

For example, in the retail industry, a good net profit ratio might be between 0.5% and 3.5%.

Other industries might consider 0.5 and 3.5 to be extremely low, but this is common for retailers. In general, businesses should aim for profit ratios between 10% and 20% while paying attention to their industry's average.

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6 0
1 year ago
Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would le
Rom4ik [11]

Answer:

Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts

Explanation:

Productivity increases when human capital increases due to higher education and training, when physical capital increases due to higher investments or when new technological breakthroughs increase productivity.

By encouraging savings, investments will increase as well as physical capital which results in an increase in productivity.

4 0
3 years ago
When examining the​ person-job fit of someone who is high in​ extroversion, we might expect that people high in extroversion wou
Artist 52 [7]

Answer: Dependable on communication

Explanation:

An extrovert is a person who is at ease with communication, working in a company whose culture is effective communication will be a great fit.

7 0
3 years ago
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