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lara [203]
3 years ago
13

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:

D

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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The balance sheet of a corporation reports ______. only the debts of the business and its owners only the results of the busines
grandymaker [24]

Answer:

only the results of the business' activities

Explanation:

 balance sheet is among the three main financial statements prepared by a corporation. It reports the financial positions of the business by showing the value of assets, liabilities, and the shareholder's equity at any point in time. Therefore, a balance sheet shows the net worth of the corporation.

The preparation of the balance sheet follows the accounting equation of assets equals liabilities plus shareholder equity. On one side, the balance sheet reports the assets and liabilities and equity on the other.  In other words, the balance sheets indicate how the assets of a business are financed. It does not report on the personal activities of business owners.

6 0
3 years ago
A 15% increase in sales resulted in a 40% increase in net income for Company A and a 60% increase in net income for Company B. B
Ivahew [28]

company B has the greater operating leverage

What is operating leverage?

A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.

The break-even point of a business is determined using operating leverage, which also aids in determining the right selling prices to cover all expenditures and make a profit.

Regardless of whether they sell any units of product, businesses with significant operational leverage must cover a bigger amount of fixed costs each month.

Low-operating-leverage businesses may have high variable costs that are directly related to sales, but they also have fewer monthly fixed expenses.

Learn more about operating leverage with the help of given link:-

brainly.com/question/6238482

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3 0
1 year ago
When Jill was asked, she chose cars over stomach cancer as the cause of more U.S. deaths per year. When asked why she chose the
SOVA2 [1]

Answer:

C. availability.

Explanation:

The availability bias and misinterpretation is the result of increased frequency and omnipresence of information that does not reflect its importance or correctness.

Here, Jill is clouded by how much car deaths are propagated in the media, so she fails to realize the correct answer, despite the fact that stomach cancer could seem rational in her mind.

6 0
2 years ago
What is the difference between wacc and marginal cost of capital?
kvv77 [185]
<span>Marginal Cost of Capital may involve less calculation than WACC, however marginal cost may be calculated by incorporating tax rates, overhead, insurance or any other cost associated with acquiring the particular capital.</span>
4 0
3 years ago
Because the _____ is the rational part of the personality, it sometimes plays referee between the wishes of the _____ and the __
snow_tiger [21]
<span>Because the ego is the rational part of the personality, it sometimes plays referee between the wishes of the Id and the Superego. The ego or your ego is referred to be your conscious mentality and it is also your perception of your own self.</span>
7 0
3 years ago
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