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Ipatiy [6.2K]
3 years ago
5

Suppose the monopolist able to successfully price discriminate between two groups by charging one group $ 75 and charging $35 to

the other group. c. What are the firm's profits if it charges the two prices as mentioned above
Business
1 answer:
Rom4ik [11]3 years ago
5 0

Answer:

The firm's profits if it charges the two prices as mentioned above = $ 1425

Explanation:

P.S - The exact question is -

Proof -

we calculate the profits individually for 2 different prices:

When price = $75:

Quantity sold = 15 units

Total revenue = 15 × 75 = $1125

Total cost = Marginal cost × quantity

                  = 20 x 15 = $ 300

⇒Total cost = $300

So,

Profit = 1125 - 300 = $825

When price = $35 :

Quantity sold = 55 - 15 (quantity purchased at price = $75)

⇒Quantity sold = 40

Total revenue = 40 × 35 = $1400

Total cost = Marginal cost × quantity

                 = 20 x 40 = $ 800

⇒Total cost = $800

So,

Profit = 1400 - 800 = $600

Now,

Total combined profit = 825 + 600 = $1425

∴ we get

The firm's profits if it charges the two prices as mentioned above = $ 1425

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Comparative balance sheets for Pina Colada Corp. are presented as follows. Pina Colada Corp. Comparative Balance Sheets December
DerKrebs [107]

Answer and Explanation:

The Preparation of cash flows for 2020 using the indirect method is shown below:-

Cash flow from Operating Activities

Net income $134,100

Add: Adjustments to reconcile   net income

Add; Depreciation on property, plant  and equipment $25,000  ($66,250 - $41,250)

Less: Increase in Accounts receivable ($8,300)    ($84,350 - $76,050)

Add: Decrease in Inventory $7,750   ($180,500 - $188,250)

Less: Decrease in Accounts payable ($12,950)    ($33,400 - $46,350)

Net cash provided by  Operating Activities   $145,600

Cash flow from Investing Activities

Add:Sale of Land $24,850

Less: Purchase of equipment ($49,800)    ($249,600 - $199,800)

Net cash used in Investing Activities ($24,950)

Cash flow from Financing Activities

Issue of common stock $48,900

Less: Redemption of bonds ($50,700)

Less: Dividend paid ($68,300)

Net cash used in Financing Activities ($70,100)

Net increase in Cash and Cash Equivalents $50,550

Cash in the beginning of the period $22,400

Ending cash balance for the year $72,950

7 0
3 years ago
Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics. Microeconomics
jeka57 [31]

Answer:

The correct answers are:

A) The effects of the Internet on the pricing of used cars.  (Microeconomics)

B) The effect of government regulation on a monopolist's production decisions . (Microeconomics)

C) The effects of government tax policy on long-term economic growth. (Macroeconomics)

Explanation:

The field of economics is usually broken down into two broad categories: Microeconomics and Macroeconomics. The goal of all economics is to analyze the production and consumption of finite resources like oil, wheat, capital or even labor. Microeconomics observes these issues from an individual or business perspective. Macroeconomics looks at the issues from the perspective of the country as a whole, and the policies affecting the economy. Thus:

A) The effects of the Internet on the pricing of used cars. (Microeconomics)

B) The effect of government regulation on a monopolist's production decisions. (Microeconomics)

C) The effects of government tax policy on long-term economic growth (Macroeconomics)

3 0
3 years ago
________ examines organizational units for efficiency, effectiveness, and adequate controls.
mel-nik [20]
Currently, I would say LEAN and Six Sigma.
8 0
3 years ago
Kathy is an office manager at a growing law firm that specializes in pursuing awards for accident victims. She is assigned as th
Slav-nsk [51]

Answer:

Kathy should seek quotes from various rental space providers.

Explanation:

Kathy should make a decision to rent of renovate the building based on cost. The major criteria for decision making is based on the monetary factors. Rent for the new space will be compared with the renovation cost in order to reach to a final decision.

7 0
2 years ago
you borrowed $4 from your roomate to buy backup calculator batteries on the way to the exam. the next day, you repaid the $4 plu
LiRa [457]

Answer:

0.2840 or 28.40%

Explanation:

The formula for EAR= (1 + i/n)^n - 1

Where i= stated interest rate

n= number of compounding periods

In this case since the interest he paid is 1 cent, to convert it into percentage, we divide it by the dollar and multiply by 100

Note: 100 cent = 1 dollar

Therefore 4 dollars= 400 cents

To get the Interest rates= 1/400 x 100

= 0.25

n= 365 since we are computing daily

(1 + 0.25/365)^365 - 1

(1 + 0.000685)^365 - 1

(1.000685)^365 - 1

1.2840 - 1

0.2840 or 28.40%.

3 0
3 years ago
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