Answer and Explanation:
The computation is shown below:
TC = 25 + q^2
Now
Marginal cost is
= dtc ÷ dQ
= 2q
Average variable cost (AVC) = q
We Assuming perfect competition so there is a free entry so no profits
Therefore
ATC = P
ATC = TC ÷ q
= q + 25 ÷ q
Now
MC = MR = P = ATC
2q = q + 25 ÷ q
q = 25 ÷ q
q^2 = 25
So, Quantity per firm = q = 5
Now
P = MC = MR = ATC
= q + 25 ÷ q
= 5 + 25 ÷ 5
= 5 + 5
= 10
hence, equilibrium price is 10
Now
Q = 35 - P
= 35 – 10
= 25
Hence, Market quantity (Q) = 25
And, the number of firms i.e n
N = Q ÷ q
= 25 ÷ 5
= 5
Answer: Option (c) is correct.
Explanation:
When interest rates fall then firms want to borrow more for new plants and equipment and households want to borrow more for home building.
If there is a fall in the interest rate in an economy this will make the loans cheaper.
So, every individual wants to grab this opportunity by taking cheaper loans for various purposes such as home building, buying new plants and equipment, etc.
Hence, firms take an advantage of the lower interest rate by making investment in plants, equipment and machinery.
Whereas households also want to borrow from banks at lower interest rates for building their home. Because it will become cheaper for them to take loan at the ongoing lower interest rate.
The company should sell product xy as it is
and should not process it further.
Given:
Original
Incurred cost of $5,000
No. of units is 6,400
Price per unit is $33
Processed product
No. of units is 6,400
Costs for further processing is $8/unit
New price per unit is $39
First, know the total costs
Original: $5,000
Processed: 6,400 x $8 = $51,200
Next, find the sales revenue for the original
and processed product
Original: $33 x 6,400 = $211,200
Processed: $39 x 6,400 = $249,600
Then, get the net profit for the original and
processed product
Original: $211,200 - $5,000 = $206,200
Processed: $249,600 - $51,200 = $198,400
With the data provided, you can find out that
the net profit is higher on the original/unprocessed product compared to the
processed product even if the selling price and revenue is much higher.
<span> </span>
Answer:
4,494.68
Explanation:
Formula
Fc = Ic (1+i) ^ n
Where;
Fc= Final Capital
Ic= Inicial Capital
i= interest rate
n= period
In this particular case:
Fc = 1234 (1+0.034556) ^ 8 + 2345 (1+0.03456) ^ 6
Fc = 4,494.68
