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Diano4ka-milaya [45]
2 years ago
9

Suppose that a couple of months after the new pizza restaurant opens, the local government institutes a $14 per pizza price ceil

ing. If you buy a $14 pizza from Pizzazzy a week later (and assuming Pizzazzy is behaving rationally), what do you know about the marginal cost, average total cost, and average variable cost at the profit maximizing point of production after the price ceiling is imposed?
Business
1 answer:
gavmur [86]2 years ago
8 0

The information about the marginal cost, average total cost, and average variable cost at the profit-maximizing point of production when a price ceiling has been imposed will be:

  • Not higher than $10.
  • Higher than $14.
  • Higher than $10.

From the complete question, it should be noted that under perfect competition, in order to maximize profit, the price will be equal to the marginal cost. Based on the information given, the marginal cost won't be more than $10 due to the fact the ceiling price is at this price. Therefore, the <em><u>marginal cost</u></em><em> won't be more than $10.</em>

A firm in perfect competition will earn economic profit in the long run when the profit becomes zero. Therefore, the average total cost must be higher than $14.

Finally, the average variable cost won't be more than $10. This is because the price can't fall below the equilibrium price in order to maximize profit in perfect competition.

Read related link on:

brainly.com/question/25328951

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Costs that are NOT affected by the quantity of a product sold are _______ costs. Examples of these costs include rent, insurance
Dvinal [7]

Answer:

The correct answer is fixed costs.

Explanation:

Fixed costs are the cost that is spent on fixed inputs. They do not vary with the level of output. For instance insurance, rent, etc. They do not change with the change in the quantity of product, unlike variable costs.  

The variable costs are the cost incurred on variable inputs. They vary with the level of output produced.

6 0
3 years ago
A central bank would like to increase the money supply in the country. It
Lelechka [254]

Answer:

answer is A open market operations

Explanation:

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3 0
3 years ago
Eagle Equipment Corporation discharges Jay, who then sues Eagle for employment discrimination under Title VII. Eagle learns that
Karo-lina-s [1.5K]

Answer:

The correct answer is D

Explanation:

Title VII of the 1964, Civil Rights Act, states the federal law and it prohibits the employers from discriminating the employees on the grounds of color, sex, religion, race and national origin.

So, in this case, Jay sues the corporation against this title, but the corporation learns that Jay lied on his job application and on this ground the corporation would fired him. This is done after acquiring the evidence and it is not a defense.

4 0
3 years ago
Presented below is information related to Splish Company at December 31, 2020, the end of its first year of operations.
elena-s [515]

Answer:

a. $131,880

b. $167,310

c. $156,050

d. $151,390

Explanation:

(a) Income from operations

Income from Operations is Income resulting from Primary Trading Activities of the Company.

Income from Operations = Gross Profit + Operating Income - Operating Expenses

where,

Gross Profit = Sales - Cost of Goods Sold

                    = $334,910 - $149,030

                    = $185,880

thus,

Income from Operations = $185,880 - $54,000 = $131,880

(b) Net income

Income resulting from Primary and Secondary Trading Activities of the the Company.

Net income = Income from Operations + Non Operating Income - Non Operating Expenses

                   = $131,880 + $32,710 + $9,080 - $6,360

                   = $167,310

(c) Comprehensive income

Income from both Continuing and Non - Continuing Activities.

Comprehensive income = Net income + Non - Continuing Activities

                                         = $167,310 - $11,260

                                         = $156,050

(d) Retained earnings balance at December 31, 2020

The Income remaining after distributions to shareholders have been made.

Retained earnings = Comprehensive income  - Dividends

                               = $156,050 - $4,660

                               = $151,390

8 0
3 years ago
On March 31, the end of the first month of operations, Barnard Inc. manufactured 15,000 units and sold 12,000 units. The followi
WARRIOR [948]

Answer and Explanation:

The computation of the unit cost of goods manufactured is shown below:

<u>Particulars                  variable costing      absorption costing</u>

variable cost of             $108                     $108

goods manufactured  ($1,620,000 ÷ 15,000)

Fixed manufacturing

cost                                                         $14

                                           ($210,000 ÷ 15,000)

unit cost of goods

manufactured           $108                     $122

3 0
2 years ago
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