Answer: The price level chosen to maximize profits will be $ 6.71
Explanation:
Whenever there is price fixing between two competitors, and one of the competitor decides to choose a price level. Such competitor must ensure that the price level chosen to maximize profit does not exceed his or her competitor's marginal cost but can be above his or her marginal cost .
Since the price fixing is $10 from previous cartel price so the best price level to maximize the profit would be less than my rival's price of $ 6.72 and more than my marginal cost of $ 6.70 which is $ 6.71
Answer:
I'maGoldMiner has benefited from a record rise in gold prices in the global commodities market. While the price of its output is highly influenced by market speculation, if it wants to increase production to take advantage of the current profit-maximizing opportunity, the company must accept market price for its physical capital input.
Explanation:
Actually, the market of gold is very speculative and in general a "gold mines" has to accept market prices because they can't influence in them as in the case of I'maGoldMiner because it represents a small part of the market.
The cost was $1.15 billion
Answer:
b. False
Explanation:
Only external reports which are used by various stakeholders (Investors, customers, tax authorities, banks, suppliers etc.) are required to follow <em>reporting framework</em> laid out in GAAP.
However, for Managerial reporting , <em>no strict requirements</em> are set for the preparation of reports as the management use various reporting styles to <u>manage business performance</u>. An example is the use of <em>Variable Costing Income Statements </em>that show the relationship between outputs and costs resulting from different activity levels.
Answer:
sets a price floor above the equilibrium price.
Explanation:
Price floor is defined as a government imposed price regime that sets the minimum amount that suppliers can charge buyers for a particular good.
Suppliers are not allowed to charge below this price. For this strategy to be effective it needs to be a price that is above equillibrum price.
When price floor is above equillibrum price quantity supplied exceeds quantity demanded. This results in a surplus of goods and services.
The surplus effect is illustrated in the attached diagram.
