<span>A single-priced, profit-maximizing monopolist </span><span>always charges a price above the marginal cost of production.
The monopolist (since there is only one and no competition) sets the output level and the price based on the demand they are seeing. The price will always be above the marginal cost of production so that they will see income and revenue.
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Answer:
55 cents
Explanation:
75 cents each for a taco
$1,50 for two tacos (75×2)
80 cents for a medium drink
Total cost =1.50+0.80=$2.30
Additional taco =2.30+0.75=$3.05
Value meal =$2. 50
The marginal cost for Jordon to purchase an additional taco instead of the value meal =
3.05-2.50=55 cents
Answer and Explanation:
1a. The computation of the payback period is shown below:
Payback period = Initial investment ÷ Cash inflow
where,
Initial investment is $592,000
And, the cash flow is
= Depreciation expense + net operating income
= $35,520 + $38,480
= $74,000
So, the payback period is
= $592,000 ÷ $74,000
= 8 years
1b. As we can see that the payback period is of 8 years but the given payback period is 5 years so the company should not purchased the new games
2a. The computation of the simple rate of return is shown below:
Payback period = Net operating income ÷ Initial investment
= $38,480 ÷ $592,000
= 6.5%
2b. As we can see that the simple rate of return is 6.5% but the given simple rate of return is minimum 8% so the company should not purchased the new games
Answer
Retained earnings will be overstated by $38.40 million
Explanation:
The overstatement of retained earnings by this amount arises from the fact that if the depreciation of $64 million had been charged, the charge will have been tax deductible at 40% thus the amount overstated if (1-40%) x $64m =$38.4m.
Answer:
(A) Technical skills
Explanation:
Technical skills are the abilities and knowledge needed to perform specific practical tasks that are often related to mechanical, information technology, mathematical, or scientific tasks.