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Anna71 [15]
3 years ago
10

Suppose that Comcast has a cable monopoly in Philadelphia. The following table gives Comcast's demand and costs per month for su

bscriptions to basic cable (for simplicity, we keep the number of subscribers artificially small.)
Price Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost
68 3 204 - 144 -
64 4 256 52 172 28
60 5 300 44 204 32
56 6 336 36 240 36
52 7 364 28 280 40
48 8 384 20 324 44
Suppose the local government imposes a $99 per month tax on cable companies. What will Comcast do? (Assume fixed costs equal to $60.)
A. Comcast should produce 6 units in the short run and shut down in the long run.
B. Comcast should produce 6 units in the short run and in the long run.
C. Comcast should shut down in the short run and in the long run.
D. Comcast should shut down in the short run and produce 6 units in the long run.
E. None of the above.
Suppose that the flat per-month tax is replaced with a tax on the firm of $4 per cable subscriber. (Assume that Comcast will sell only the quantities listed in the table.) To maximize profit, how many subscriptions should Comcast sell, and at what price? What will be the profit?
Business
1 answer:
arsen [322]3 years ago
6 0

Answer:

A. Comcast should produce 6 units in the short run and shut down in the long run.

Explanation:

Comcast in operating cable business. The government of Philadelphia has imposed a tax of $99 every month. Comcast should produce 6 units in the short run. This will minimize it total cost and the company will be able to continue its operation in the short run. If the taxes persist in the long run then the company will go towards shut down.

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IKEA advertises throughout the year, but significantly increases its advertising during the back-to-school time frame, thus impl
wel

Answer:

Pulsing

Explanation:

Pulsing is the combination of flighting and persistent booking by utilizing a low promoting level lasting through the year and substantial publicizing during top selling periods.  

Product classes that are sold all year yet experience a flood in deals at irregular periods are great possibility for beating.

8 0
3 years ago
A 20-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. Find the bond equivalent
iren2701 [21]

Answer:

The bond equivalent yield to maturity = 8.52%

The effective annual yield to maturity of the bond = 8.71%

Explanation:

Here, we start with calculating the yield to maturity YTM using the financial calculator

To find the YTM, we need to put the following values in the financial calculator:

N = 20*2 = 40;

PV = -950;

PMT = [8%/2]*1000 = 40;

FV = 1000;

Press CPT, then I/Y, which gives us 4.26

So, Periodic Rate = 4.26%

Bond equivalent yield = Periodic Rate * No. of compounding periods in a year

= 4.26% * 2 = 8.52%

effective annual yield rate = [1 + Periodic Rate]^(No. of compounding periods in a year) - 1

= [1 + 0.0426]^2 - 1 = 1.0871 - 1 = 0.0871, or 8.71%

3 0
3 years ago
A firm uses a standard costing system and allocates variable overhead costs based on direct labor hours. The annual budget proje
DENIUS [597]

Answer:

Your answer is given below:

Explanation:

Statement showing Computations  

         Paticulars                                                                             Amount

Variable overhead cost per unit =100,000/1,000                   100.00

Standard Variable overhead for 750 Units = 750 * 100             75,000.00

Actual Variable overhead             75,000.00

Variable overhead spending variance= Standard VO - Actual VO  

Variable overhead spending variance= 75,000 - 75,000  

Variable overhead spending variance= 0

8 0
3 years ago
The accounting records of Brownwood Company revealed the following information: Work in process inventory, Jan 1 58,000 Work in
ivanzaharov [21]

Answer:

$721,000 is correct

Explanation:

Cost of goods sold =754000 + 125000 -158000

=721,000

8 0
3 years ago
Cox Co. accounts for its inventory using the LIFO cost method. An inventory loss from a permanent market decline of $360,000 occ
kirill115 [55]

Answer:

$360,000

Explanation:

Last in first out (LIFO) is a method used in inventory where the cost of most recently purchased goods is the one to be expensed first. Also current losses are the first to be reported.

An inventory loss incurred in a quarter must not be deferred, but recorded as items within an interim must be reported in the same period they were incurred, unless it can be redeemed before the end of the fiscal year. It is not considered a temporary item.

The loss reported in May will be reported for that quarter in June.

8 0
3 years ago
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