1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ipatiy [6.2K]
2 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]2 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

You might be interested in
______ are typically a function of the performance of the organization and are less dependent on the perceived performance of th
iragen [17]

Answer:

A. Bonuses

Explanation:

A bonus is a type of compensatory amount given to the employees as a form of appreciation. The performance of the employees are considered and the bonus is provided to them based on their contribution. These are mainly provided on special occasions, especially when a sound revenue is generated in the company. Giving a bonus to the employees helps in building a bond among the employee and the company.

7 0
3 years ago
One way to think about TQM is as a business philosophy centered around seven core ideas, or principles: __________ refers to com
Elena-2011 [213]

Answer:supplier partnerships

Explanation:supplier partnership is a commitment over an extended time to work together to the mutual benefit of both parties, sharing relevant information and the risks and rewards of the relationship.

In quality control, extended relationship between buyers and sellers based on confidence, credibility, and mutual benefit. The buyer, on its part, provides long-term contracts and assurance of only a small number of competing suppliers. In reciprocation, the seller implements customer's suggestions and commits to continuous improvement in quality of product and delivery.

6 0
3 years ago
Read 2 more answers
Imagine that you are a manager at Applebee’s, a restaurant chain. Turnover is always a challenge with restaurant employees, and
Daniel [21]

Answer:

D. Your interventions to the core job characteristics are likely to be effective.

C. Growth need strength

8 0
3 years ago
A firm wishes to maintain an internal growth rate of 8 percent and a dividend payout ratio of 36 percent. The current profit mar
Anon25 [30]

Answer:

2.16 times

Explanation:

Given that,

Internal growth rate = 8 percent

Dividend payout ratio = 36 percent

Current profit margin = 5.8 percent

Therefore,

Internal Growth Rate = (1 - Dividend Payout Ratio) × ROA

8% = (1 - 36%) × ROA

0.08 = 0.64 × ROA

ROA = 0.08 ÷ 0.64

        = 0.125

ROA = Profit Margin × Total Asset Turnover

0.125 = 0.058 × Total Asset Turnover

Total Asset Turnover = 0.125 ÷ 0.058

                                   = 2.16 times

6 0
3 years ago
Which of the following would produce the largest increase in the contribution margin per unit? A 14% increase in variable cost.
Rama09 [41]

Answer:

A 7% increase in selling price.

Explanation:

Contribution margin refers to the difference between selling price and variable cost.

Contribution margin:

= Selling price - Variable cost

Net income:

= Contribution margin - Fixed cost

(i) 14% increase in variable cost:

It cannot, because it will decrease the contribution margin.

(ii) 17% decrease in fixed cost:

It cannot affect the contribution margin.

(iii) 15% decrease in selling price:

No, it will reduce the contribution margin.

(iv) 7% increase in selling price:

Yes, it will increase the contribution margin since there is an increase in the selling price.

(v) 23% increase in the number of units sold:

No, it will not impact the selling price or variable cost.

5 0
3 years ago
Other questions:
  • The promotional mix includes advertising, personal selling, sales promotion, __________, and direct marketing. A. public relatio
    15·1 answer
  • A borrower takes out a 30-year adjustable rate mortgage loan for $200,000 with monthly payments. The first two years of the loan
    5·1 answer
  • "A retail store owner offers a discount on product A and predicts that the customers would purchase products B and C in addition
    6·1 answer
  • Which example best demonstrates the capabilities of e-mail?
    15·2 answers
  • Towson Corp., had 6,000 shares of $100 par, 4% cumulative preferred stock as of January 1, 2018. No additional shares of preferr
    11·1 answer
  • Which ERP component can help an organization predict such things as the identification of individuals who are likely to leave th
    14·1 answer
  • Which of these represents an equilibrium price for designer jeans? The arrow pointing to D2 The intersection of P1 and Q1 The li
    9·2 answers
  • Insurance.Susan,a trained nurse,was recently elected to the U.S.Senate.Susan is very concerned about the lack of insurance for m
    11·1 answer
  • Brainliest ASAP helppppp please
    13·2 answers
  • Jefferson Company has sales of $300,000 and cost of goods available for sale of $270,000. If the gross profit ratio is typically
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!