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skad [1K]
2 years ago
5

A monopolistic competitive firm is currently charging a price of $10 and producing 12,000 units/month. It faces monthly fixed co

sts of $15,000 and has an average variable cost of $6/unit. In the long run, we would expect:
Business
1 answer:
gizmo_the_mogwai [7]2 years ago
5 0

Answer:

either the selling price decreases or the total output decreases

Explanation:

The firm's income statement:

total sales revenue =            $120,000

minus total variable costs = ($72,000)

<u>minus total fixed costs =       ($15,000)  </u>

net profit =                             $33,000

The long run equilibrium for a monopolistically competitive firm occurs when the firm is making no economic profit since it is charging a price =  average total cost.

In this case the average total cost per unit = $6 per unit + ($15,000 / 12,000 units) = $7.25 per unit

Since the firm is currently charging a higher selling price than average total cost ($10 > $7.25), one or two things might happen in the long run:

  1. selling price will decrease
  2. output will decrease
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For a portfolio of 40 randomly selected stocks, which of the following is most likely to be true? a. The beta of the portfolio i
Paraphin [41]

Answer:

c. The beta of the portfolio is equal to the weighted average of the betas of the individual stocks.

Explanation:

The portfolio beta which is a measure of the systematic risk for a portfolio is calculated by taking the weighted average of betas of all the individual stocks that form up the portfolio. So the statement stating that the portfolio beta is equal to weighted average of individual stock betas is correct.

8 0
2 years ago
he following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports t
deff fn [24]

Answer:

$7,000

Explanation:

The computation of the amount of purchasing department allocated to assembly department is shown below:

= Total  purchasing department cost × number of purchase order  ÷Total numbers of purchase orders in overall operating departments

= $35,000 × 4 ÷ 20

= $7,000

The 20 number of purchase orders is come from

= 16 + 4

= 20

We simply applied the above formula

7 0
2 years ago
Your annual sales are $240,000. The sales are spread evenly over four quarters. What are your sales in each quarter?
horrorfan [7]

Answer:

60000

Explanation:

240,000/4

6 0
3 years ago
Suppose you have a production technology that can be characterized by a learning curve. Every time you increase production by on
serious [3.7K]

Answer:

a) Learning Costs Curve:

Quantity       Marginal           Total Cost ($)             Average Cost (Units)

                      Cost ($)                                                   ($/unit)

      1                $76                        $76                        $76

      2               $70                        $146                       $73

      3               $64                        $210                       $70

      4               $58                        $268                      $67

      5               $52                       $320                      $64

      6               $46                       $366                      $61

b) For a request for proposal for two units,  the break-even price for the two units is $146 ($73 per unit).

c) For two more units, the break-even price for them alone is $122 ($268 - $146).  Each unit's break-even price will be $61 ($122/2).

Explanation:

a) A break-even price is a price that is equal to the total cost.  At break-even, there is no profit and there is no loss.  The total cost equals total revenue.

b) The learning cost curve shows how the "marginal cost decreases as a result of an increase in production by one unit."  This curve can be illustrated graphically to show how the marginal and average costs reduce as a result of the increase in the quantity produced.

3 0
2 years ago
Alex is a law attorney at Cooper Enterprises. His client, Maggie, is seeking a divorce from her husband of two years. Since she
inessss [21]

Answer: C.) jargon

Explanation: Based on differing fields, profession or line of expertise, some words or terms are usually reserved to connote a special relevance or usage within such field. In many cases, these words are usually popular only within the circle of such profession and usage is usually rampant within professionals or individuals in such field. Such terms which are usually specific to a profession or field and may be difficult for those outside the profession to understand are called JARGON. In the context above, Alimony is usually used within the legal setting to mean a husband's provision package to his spouse after separation.

4 0
2 years ago
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