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3 years ago

A monopoly that attempts to charge the socially desirable price will invariably reduce their economic profit because:_______

Business

2 answers:

shusha [124]3 years ago

8 0

Answer:

Explanation:

A monopoly that attempts to charge the socially desirable price will invariably reduce their economic profit because average cost and marginal cost are equal.

Gemiola [76]3 years ago

7 0

Answer:

The correct choice is - Price is equal to the Marginal Cost.

Explanation:

Socially desirable price refers to the point on the graph where the demand (D) stands equal to or intersects the marginal cost (MC). That is MC = D.

The challenge with setting prices like this is that the business in arriving at the price of its product(s) and or service(s) has not taken into consideration the fixed cost to the business. To breakeven, the owner of a business must know its Average Total Cost (which takes into consideration both marginal and fixed costs) and set its prices equal to same. To make a profit however the business must set its prices above the Average Total Cost.

Recall that ATC = MC + F/Q where

ATC = Average Total Cost

MC = Marginal Cost

F = Fixed Cost

Q = Quantity of goods produced

D = Quantity of goods demanded

Cheers

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An employee of a firm has a job where the employee can easily adjust the number of hours they work for the employer per year. Th

USPshnik [31]

Answer:

The answer to both a and b is in the explanation below

Explanation:

a) The increase in wage can either decrease or increase the hours worked. This is became an increase in wage has both substitution effect and income effect that work in different directions. Substitution effect An increase in wage increases the opportunity cost of leisure, thereby making the worker increase number of hours worked. Income effect The increase in wage also makers the worker richer, thereby making the worker decrease number of hours worked.

Since no information about worker's preferences is given, we do not Imow which effect will dominate the other effect and, therefore, we do not know what the net impact of the increase in wage will be.

b) The bonus will only have income effect. The bonus will make the workers richer, thereby making the worker decrease number of hours worked.

If in part a), the substitution effect and income effect are equal in magnitude, then there will be no change in the number of hours worked. The number of hours worked will remain the same at 2000 hours. Since the employer would be paying $5 extra on each hour worked, the cost to the employer of increase in wage would be $10,000 (=2000 x $5), which is the same as the bonus in part b).

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3 years ago

A sponsor proposes research to evaluate reengineering a commercially available pacemaker. It is hoped that the new pacemaker wil

Darya [45]

Answer:True

Explanation:

A significant risk device presents a potential for serious risk to the health, safety, or welfare of a subject.

It is classified as Significant risk device since it hopes that the new pacemaker will pose fewer risks to individuals when compared to the current commercially available product.

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3 years ago

Q 10.7: Melbee Farms is considering purchasing a new combine that would help them finish their harvesting faster, thus allowing

LUCKY_DIMON [66]

Answer:

Discounted payback period= 3 years 1 month

Explanation:

The discounted payback period is the estimated length of time in years it takes the present value of net cash inflow from a project to equate the net cash the initial cost

To work out the discounted payback period, we will compute present value of the cash inflow and then determine how long it will take for the sum to be equal to the initial cost. This is done as follows:

Year Cash flow DF Present value

0 487,000 × 1 = (487,000)

1 157,000 × 1.07^(-1) = 146,729.0

2 182,000 × 1.07^(-2) = 158965.8

3 202,000 × 1.07^(-3) = 164,892.2

4 213,000 × 1.07^(-4) =162,496.7

Total PV for 2 years = 146729 +158965+164892= 470587.0

Balance of cash flow remaining to equal = 487,000-470587 = 16413.0

Discounted payback period = 3 years + 16413.0 /162,496.7 × 12 months

= 3year , 1.2months

Discounted payback period= 3 years 1 month

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3 years ago

Western Company recently lost its entire inventory in an earthquake. The following information is available from its accounting

harina [27]

Answer: dont care

Explanation:

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2 years ago

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Afina-wow [57]

Answer:

C. requires visionary and directional thinking

Explanation:

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3 years ago