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tigry1 [53]
2 years ago
11

Cost behavior refers to the methods used to estimate costs for use in managerial decision making. True False

Business
1 answer:
bazaltina [42]2 years ago
8 0

Answer:

True

Explanation:

It's A.A because it makes more sense then b Falsehood

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Jimmy corporation uses the weighted-average method in its process costing system. the ending work in process inventory consists
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3 years ago
Which of the
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Read 2 more answers
A monopoly market is characterized by the inverse demand curve P = 1,200 – 40 Q and a constant marginal cost of $200. If the mar
Sergeeva-Olga [200]

Answer:

The profit maximizing output level declines by 2.5 units and the price rises by $100.

Explanation:

In a monopoly market the inverse demand curve is given as,

P = 1,200 - 40Q

The marginal cost of production of the last unit is $200.

The total revenue is

= Price\times Quantity

= 1,200Q - 40Q^{2}

The marginal revenue of the last unit is

= \frac{d}{dx} TR

= 1,200 - 80Q

At equilibrium the marginal revenue is equal to marginal price,

MR = MC

1,200 - 80Q = 200

80Q = 1,000

Q = 12.5

Putting the value of Q in the inverse demand function,

P = 1,200 - 40\times 12.5

P = $700

Now, if the marginal cost rises to $400,

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1,200 - 80Q = 400

80Q = 800

Q = 10

Putting the value of Q in the inverse demand function,

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P = $800

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3 years ago
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