Group of answer choices profits
What exactly do you need to talk about… but hey i’m here lol
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:
$500
Explanation:
Data provided in the question
Salary for the first year = $50,000
CPI increase during the year = 4%
Overstated inflation = 1% i.e 5%
The computation of the increased in salary is shown below:
= Salary of the first year × inflation rate - salary of the first year × CPI increase during the year
= $50,000 × 5% - $50,000 × 4%
= $2,500 - $2,000
= $500
