<u>Explanation:</u>
Rhetorical questions are asked in order to persuade the audience and prove them the statement rather than providing information. Mack utilizes the rhetorical questions to make his audience think about the topics asked as questions. The thoughts of different types of people are analysed.
By making the audience to think about the topics Mack keeps the audience engaged. The audience also find it interactive and communicate their thoughts on the topic effectively. Hence these questions set stage for Mack's argument and engage his audience.
Answer:
Stating True or False
P > MC, so producing more would mean that the marginal cost increases to match the market price. FALSE
P = AC, so producing more would mean that the average cost would exceed the price reducing profits. FALSE
P = MC, so producing more would mean that the marginal cost would exceed the price reducing profits. TRUE
MR < MC, so producing more would mean that the marginal cost increases to match the market price. FALSE
Explanation:
All profit-maximizing producers accept a market price (P) that is equal to the marginal cost (MC), i.e. (P = MC). At this point, the market price does not exceed the marginal costs (costs of factors of production). When = P > MC, it shows that the benefits of producing more goods exceed the production costs, to the benefit of the society. However, if P < MC, then the social costs of producing the goods exceed the social benefits, signalling that the economy should produce less.
Answer:
Total cost per unit will decrease.
Explanation:
Solutions:
Variable cost is 0.5 of the total cost
Given that total cost=fc+vc
Find FC since VC is given
Therefore :
1st month cost behavior
$60*0.5 = $30
$300,000/10,000 = $30 (fixed)
2nd month cost behavior
$300,000/10,500 = $28.57(fixed)
Add the different months together
Then have
30+28.57 = 58.57 < 60
Answer:
1. $132,800
2. $531,200
3. $1,071,200
Explanation:
The break-even point is the level of sales at which the business incur no profit no loss.Fixed and variable costs are covered at this level of sales. Use following formula of break-even to calculate the fixed cost.
Break-even point = Fixed cost / Contribution margin ratio
$487,200 = Fixed cost / 25%
Fixed Cost = $487,200 x 25% = $121,800
1.
Revised Fixed cost = $121,800 + $11,000 = $132,800
2.
New Break-even point = $132,800 / 25% = $531,200
3.
Desired profit = $135,000
Desired revenue = ( Desired profit + Fixed cost ) /Contribution margin ratio = ( $135,000 + 132,800 ) / 25% = 267,800 / 25% = $1,071,200
