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NARA [144]
2 years ago
7

One of the growers is excited by the price increase caused by the blight because he believes it will increase revenue in this ma

rket. As an economics student, you can use elasticities to determine whether this change in price will lead to an increase or decrease in total revenue in this market.Using the midpoint method, the price elasticity of demand for soybeans between the prices of
Business
1 answer:
Nat2105 [25]2 years ago
8 0

Full question attached

Answer:

Not elastic

Explanation:

The formula for demand elasticity= percentage change in quantity/percentage change in price

Therefore demand elasticity = Q2-Q1/Q2+Q1/2/P2-P1/P2+P1/2

Using graph of demand attached

= 12-15/12+15/2/21-15/21+15/2

= -3/27/2/6/36/2

=-2/9/1/3

=-2/3

=-0.67

Elasticity is less than one and so demand is inelastic

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What type of competition exists in the aviation sector? And why?
shtirl [24]

Answer:

Oligopoly market structure

Explanation:

The airline industry is characterized by an oligopoly market structure, a form of imperfect competition in which a limited number of firms dominate the industry. Oligopoly firms have market power in setting or altering prices for their products by establishing various output values.

8 0
3 years ago
Paxton Company can produce a component of its product that incurs the following costs per unit: direct materials, $10.50; direct
Sav [38]

Answer:

$8.50

Explanation:

Computation for the net incremental cost or savings of buying the component.

Using this formula

Incremental cost = Purchase price -Cost savings

Let plug in the formula

$37 - ($10.50+ $14.50 + 3.50)

Incremental cost=$37-$28.5

Incremental cost= $8.50

Therefore the net incremental cost or savings of buying the component is $8.50

3 0
3 years ago
The Waterfall Company sells a product for $150 per unit. The variable cost is $80 per unit, and fixed costs are $270,000. Determ
MrRissso [65]

Answer

(a) 3858 Units

(b) 4372 Units

Explanation

SP = Selling price per unit = $150 per unit

VC = Variable cost per unit = $80 per  unit

TFC = Total Fixed Cost = $270,000

(a) Break-Even Point (Units) = Fixed Costs ÷ (Revenue per Unit – Variable Cost per Unit)

= $270,000 ÷ ( $150 per unit - $80 per  unit )

= 3857.14 ≅ 3858 Units

(b)

x = Number of units

TR = Total Revenue = $150x

TC = Total Costs = Total Fixed Cost + Total Variable Cost

TC = $270,000 + $80x

Target Profit = $36,000

Total profit = Total Revenue - Total Costs

36000 = 150x - ( 270000 + 80x)

306000 = 70x

x = 4371.42 ≅ 4372 Units

3 0
3 years ago
Computing Cost of Sales and Ending Inventory Stocken Company has the following financial records for the current period. Units U
HACTEHA [7]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Computing Cost of Sales and Ending Inventory Stocken Company has the following financial records for the current period.

Units= 100

Unitary Cost Beginning Inventory  $ 46

Purchases:

#1= 650units at  $42

#2= 550units at  $38

#3= 200units at  $36

The ending inventory is 350 units.

A) First in, first out

First, we need to calculate the number of units sold:

Units sold= beginning inventory + purchases - ending inventory

Units sold= 100 + 1400 - 350= 1150

Ending inventory= 200 units at 36 + 150 at 38= 200*36+150*38=$12900

Cost of goods sold= 100*46 + 650* 42 + 400* 38=$47100

B) Average cost= total cost of units available for sale/ number of unit

Average cost= (100*46+650*42+550*38+200*36)/1500

Average cost= $40 unit

Ending inventory= 350*40= $14,000

COGS= 1150*40= $46,000

C) Last in, first out

Ending inventory= 100 units* 46 + 250 units*42= $15,100

COGS= 200* 36 + 550*38+ 400*42= $44,900

8 0
3 years ago
Andre dickinson, owner of andre's fine wines, also owns a personal residence that costs $475,000. the market value of his reside
Orlov [11]
<span>the economic entity assumption</span>
6 0
3 years ago
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