Calculating average cost of steak initially when only 5000 pounds was produced
Average cost= 50000/5000
AC= 10$
Now when 1 pound is added only 9$ is added in total cost so marginal cost
MC= 9$
From above calculations we can see that AC>MC
so we can say that the average cost of production is greater than marginal cost so it will be beneficial to produce more
Answer:
a. Decrease
b. Decline
c. Exit
d. No change
Explanation:
The market for gourmet chocolate is in the long-run equilibrium, and an economic downturn has caused the consumer disposable income to fall. Chocolate is a normal good, and the chocolate producers have identical cost structures.
a. This decline in the consumer income will reduce the purchasing power of the consumers. As a result, the demand will decrease. The demand curve will move to the left.
b. This leftward shift in the demand curve will cause the price to decline, As the price falls, the profits earned by the producers will decline as well.
c. In the long run, the firms operate at zero economic profits. So a decline in profits imply that the firms are operating at an economic loss. This will cause the loss incurring firms to exit the market.
d. The long run supply curve will remain the same. It is not affected by change in profits, it changes only with change in the state of technology or availability of resources.
It is mostly the women between 25 and 54 years of age who watch the lifestyle channels owned by Scripps Networks Interactive, and the advertisements run on these channels are essentially aimed at them. These women are the company's <u>Target audience</u>
Explanation:
In the question above the women between the age of 25-54 years are the Target Audience because the interactives and the advertisement on the Scripps network are aimed at these women's.
Now evaluating the other options
A )<u>Strategic Window</u> refers to a time duration during which the particular strategy adopted will work .In this case no time duration is discussed.So its is not a correct answer.
B)<u>Advertising medium
:</u>The medium using which a message is communicated to the targeted audience(like TV,radio,newspaper)
<u>C)Consumer jury
</u>:In this method the consumer play the role of a jury and they are asked to rank an advertisement
So we can say that These women are the company's <u>Target audience</u>
Answer:
Equations best describes the equation to determine total profit for a sales volume: Total profit = $10.00X – ($4X + $30,000)
Explanation:
Total variable costs to produce 1 units = Direct materials + Direct labor + Manufacturing Overhead + Selling and administrative = $1.25 + $0.75 + $1.00 + $1.00 = $4 per unit
Fixed Costs = Manufacturing overhead + Selling and Administrative = $20,000 + $10,000 = $30,000
Box sells each unit for $10.00. X is the number of units are sold
Total profit = Sales revenue - (Total variable costs + Fixed Costs) = $10.00X – ($4X + $30,000)
