Answer: Not change the quantity demanded.
Explanation: In a market demand is said to be perfectly inelastic, if the demand for commodities is not affected by price changes.
Therefore since the demand for natural gas in perfectly inelastic, the demand will not change regardless of the change in price of the gas.
A dole proprietor(the answer)(you’re welcome)
Answer:
<em>$13</em>
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Explanation:
The fix manufacturing cost per unit can be calculated as following:
+) Fixed manufacturing cost per unit = Fixed manufacturing cost/ Units produced
= 240,000/ 60,000 = $4
The variable costs per unit include:
+) Direct materials per unit: $5
+) Direct labor per unit: $3
+) Variable overhead: $1
=> The per unit manufacturing cost under variable costing is: 5 + 3 + 1 = $9
<em>The per unit manufacturing cost under absorption costing is = Fixed manufacturing cost per unit + The per unit manufacturing cost under variable costing</em>
<em>= 4 + 9 = $13</em>
Answer:
Meatball prices will exceed marginal cost.
Explanation:
Taking on account that Angelo is the only meatball's provider in the area, he is the only actor in his market segment. If he wants to maximize the profit for his business the meatball prices will exceed marginal cost; there are two ways to make it possible for the product. the first option is to reduce the marginal cost through the reduction on the cost prices, it will reduce the total marginal cost and give a higher profit.
The second option involves rising the prices, in this case, as Angelo has the market's control he can rise the prices,as a result, the marginal cost will be the same but the meatball's prices will be higher increasing the profit.