Answer:
The correct answer is option D.
Explanation:
The market price is P.
The marginal cost is given at MC.
The subsidy is equal to s.
When the subsidy is provided to only a single firm, that firms marginal cost will decline. The firm can take advantage of decreased marginal cost by increasing the output level. The firm will produce the output where the price and marginal revenue is equal to marginal cost plus subsidy. At this point, the firm will be having maximum profit.
So, the firm will increase production until
P=MC+S
Answer:
Operating loss will decrease by $20,000
Explanation:
Operating loss from normal business activities and if the division is not shut down = $150,000.
Operating loss if division is shut down by the management = $130,000 ($480,000 - $350,000) because the management has determined that $350,000 of the $480,000 Fixed Costs shown would be eliminated if that happens.
So, if the Northern Division is shutdown, the Operating loss will decrease by $20,000 (From $150,000 to $130,000)
Answer:
d.The digital cameras manufactured by the firm are seen as the standard for competitors to match.
Explanation:
Mindshare is a term that measures the amount of popularity and consumer awareness in a certain category. To say that Digicon Inc. has a mindshare in the category of digital cameras means that the company sets the bar for the digital cameras market and, therefore, should be seen as the standard that competitors should try to match.
Thus, the answer choice that better fits the description is d.The digital cameras manufactured by the firm are seen as the standard for competitors to match.
Investor is the answer. Hope this helps!
