Solution :
c. MC=MR is the profit maximizing equilibrium point. The price rise beyond that is likely to raise the total revenue. But the total cost might increase equally or more then that to nullify or decrease the profit.
d. (i). The demand increase implies that the AR (demand) curve shifts rightwards. This will increase the equilibrium price.
(ii). Change in demand does not affect the total cost.
a. Monopoly might continue to produce in short earn even if its AR < AC. It continues to do so until shut down point. It refers that production continued until average revenue (AR) is greater than equal to the average variable cost (AVC). The monopoly is a market with a single seller.
This market's average revenue (AR) demand curve is above its marginal curve . The curves are downward sloping, illustrating price demand inverse relationship.
Equilibrium quantity : when the marginal revenue = marginal cost
Equilibrium price : equilibrium quantity corresponding price at AR (demand ) curve.
Answer:
The plot is attached.
a) <u>
Linearity Condition:</u>
an upward pattern is seen in the dissipate plot. All the focuses are plotted near one another demonstrating that the relationship is solid. Henceforth I can say that there is a solid positive straight connection among spending plan and gross. As the estimation of spending builds, the estimation of gross likewise increments.
Truly, the plot is sensibly honest without any Bends.
b) <u>Equal Spread Condition:</u>
to check the suspicion of equivalent spread condition, a lingering plot is required. A remaining plot is plotted with the free factor on the x-pivot and the lingering esteems on the y-hub. In the event that the remaining plot has arbitrary focuses, I can say that the difference is consistent. As such, a leftover plot with irregular focuses is said to follow the presumption of fairness of difference.
For this situation, the leftover plot isn't appeared, consequently there is inadequate data to check the equivalent spread condition.
c) <u>
Normality Condition:</u>
Another presumption of relapse examination is the suspicion of ordinariness of residuals. This presumption can be checked with the assistance of PP plot. A PP plot with S shape shows that the suspicion of ordinariness of residuals is followed.
For this situation, there is inadequate data to check the typicality presumption in light of the fact that the PP plot isn't given.
Take home pay is the other term used for gross salary.Take home pay happens when all the tax and other payment obligations is already deducted. For Example: => you're monthly salary is 15 000 dollars. => your tax for example is 1500 dollars per month => then you have to pay also for your sss, pag-ibig, philhealth and any other payment that needs to be settled.<span>The your salary, minus the tax and other payments is equals the take home pay.</span>
Managers, this is symbolic of how business is run in U.S. culture.