What report compares metrics based on user acquisition date over a series of weeks?.

Suppose a monopoly's inverse demand curve is p = 13 — Q, and its cost function is C(Q) = 25 + Q + 0.5Q2. (a) Use profit maximiza

Lera25 [3.4K]

Answer:

(a) Q* = 6

(b) The price in the market is $7 and the monopoly's loss is also 7.

(c) The monopoly should operate because the price of 7 is greater than the AVC of 4.

Explanation:

(a) Use profit maximization to determine the profit maximizing quantity, Q*, for the monopoly. Show all steps for the profit maximization process.

Given $C(Q) = 25 + Q + 0.5Q^2$ ............................ (1)

MC = C'(Q) = 1 + Q ............................................... (2)

p = 13 — Q ................................................................(3)

Profit is maximized when P = MC, Therefore, we equate equations (2) and (3) and have:

1 + Q = 13 - Q

Q + Q = 13 - 1

2Q = 12

Q* = 12/2

Q* = 6 <-------------- Profit maximizing Q*

(b) At Q*, what is the price in the market and what is the monopoly's profit?

Substituting 6 for Q in equation (3), we have:

p = 13 — 6

p = 7 <-------------- The price in the market

Revenue = Q*P = 6 * 7 = 42

To obtain cost, substitute 6 for Q in equation as follows:

Cost = $C(Q) = 25 + 6 + 0.5(6)^2$

= 31 + (0.5 * 36)

= 31 + 18

Cost = 49

Profit (loss) = Revenue - Cost = 42 - 49 = - 7 loss

(c) In the short run, should the monopoly operate or shut down? Why?

From equation (1), we have:

Fixed cost = 25

Variable cost (VC) = $Q + 0.5Q^2 = 6 + 0.5(6)^2 = 6 + 18 = 24$

Average variable cost (AVC) = VC/Q = 24/6 = 4

p > AVC => 7 > 4

The monopoly should operate because price of 7 is greater than the AVC of 4. Continuing operation will therefore enable the monopoly to cover variable costs fully and some part of the fixed cost. This way, loss will be minimized.

6 0

4 years ago

Which of these is NOT a federal spending category?

zhenek [66]

Answer:

Contractionary

Explanation:

There is no such a thing as Contractionary spending. The only 3 categories used for federal expending are: mandatory spending, discretionary spending and interest on debt.

6 0

3 years ago

When an intercompany inventory profit resulting from a sale by a less than 100% owned subsidiary to its parent is eliminated, th

joja [24]

Answer:

TRUE

Explanation:

It is true that when an intercompany inventory profit resulting from a sale by a less than 100% owned subsidiary to its parent is eliminated, the full amount (100%) of the decrease in profit is deducted from consolidated net income available to the parent shareholders.

Unrealized profits are the profit element not earned because they were not sold to third parties, it was basically a transfer between one company in a group (for example subsidiary) and another company in the same group (for example to the parent company).

At the year-end, if the goods are still in inventory, any profit thereon cannot be recognized but eliminated. Therefore for consolidation purposes, this unrealized profit element is taken out of inventory value in order to reduce the inventory value back down to the lower of cost or net realizable value.

This is done by crediting the inventory amount and debiting consolidated retained earnings.

3 0

3 years ago

Bottlebrush Company has income from operations of $73,745, invested assets of $245,000, and sales of $1,053,500. Use the DuPont

zaharov [31]

Answer:

a. Profit margin = Income from operations / Sales

Profit margin = $73,745/$1,053,500

Profit margin = 0.07

Profit margin = 7%

b. Investment turnover = Sales/Invested assets

Investment turnover = $1,053,500/$245,000

Investment turnover = 4.3 times

c. Rate of return on investment = Profit margin * Investment turnover

Rate of return on investment = 7% * 4.3

Rate of return on investment = 30.10%

3 0

3 years ago

1. How business driven MIS, value driven business, E-business, and information security relate to each other. 2. Please provide

KATRIN_1 [288]

Answer:

2. Google is an example for this type of business.

Explanation:

These terms (MIS, Value driven business, E-Business, and information security) are interlinked in today technological era of businesses.

As the example is given above about google, it is being explained right here.

As we all know google is a technology based organization which is working on the concept of Management information system. Its recent case study shows that how this organization is a value driven business.

Google actually, takes really care about its employees, it has all necessary facilities to offer for its employees such as on-site doctors, cafeteria led by famous chefs, so that means they are value driven business too.

it is also providing E-business facilities to other businesses. And its information security is one of the top on list.

8 0

3 years ago