Answer:
$80 per unit
Explanation:
We know that,
Contribution per unit = Selling price per unit - variable cost per unit
= $100 per night - $20 per rented room
= $80 per unit
Simply we deduct the variable cost per unit from the Selling price per unit so that the contribution margin can be computed
All other information which is given is not relevant. Hence, ignored it
Answer:
A. Downward sloping; economies of scale
Explanation:
As the costs rise slower than quantity produced, the cost for each additional unit produced (marginal cost) is decreasing. That is when the Average Cost curve is downward sloping.
At that point the more products are made (scales of production) the lower unit cost becomes (more economic), which means economies of scale.
<span>You are working in the production stage of problem-solving if
you are figuring out all the ways that you can do and make just to come
up with the money you need to buy the used car you saw advertised in the
newspaper.</span>
Answer:
(a) P = 80 and Q= 100
(b) P = 80.57 and Q= 97.15
(c) Tax revenue = 194.3
Explanation:
Qd= 500 - 5P
Qs = 2P - 60
(a)
In equilibrium

Putting this value of P back into the Qd or Qs equation

Thus, equilibrium price is 80 and equilibrium quantity is 100
(b)
When a tax is imposed the supply curve shifts up to the left by the amount of the tax. The new supply curve is given by

The new equilibrium is

Substitute it into Qs or Qd we get

(c)
