Answer:
$46,900,000
Explanation:
Calculation for the erosion cost of adding the mid-range camper
Erosion cost = [(1,100 - 850) × $140,000] + [(2,200 -2,000) × $59,500]
Erosion cost =(250×$140,000)+(200×$59,500)
Erosion cost =$35,000,000+$11,900,000
Erosion cost = $46,900,000
Therefore the erosion cost of adding the mid-range camper will be $46,900,000
Answer:
(a) Continue to operate.
(b) Shut down
(c) Continue to operate.
Explanation:
(a) It is given that the firm will experiencing a loss of $5000. Therefore, it means that a loss of $5,000 is borne by the producer of the fixed cost. It is a portion of fixed cost but the firm will continue to operate in the short run if it covers all of the variable cost in the short run.
(b) The firms in the long run try to cover all of its variable and fixed cost. If this situation persists then this firm unable to cover its all costs. Therefore, the firm will shut down its operation and go out of the business.
(c) Now, if the firm’s fixed costs are $2,000.
There is a reduction in the fixed cost by $6,000
Previously firm able to cover = $8,000 - $5,000
= $3,000
It means that it cover its fixed cost and hence, the firm will operate in both short run and long run.
Answer: Nontariff barriers
Explanation:
Nontariff barriers are trade barriers that are used whereby the import and export of goods and services are restricted. It should be noted that the restriction is not by tariffs but can include include embargoeds, quotas, sanctions, and levies.
The main reason for trade barriers are to generate revenue for the government and also to protect the local industries.
Answer:
the most spend on research will be $12,000
Explanation:
given data
earn = 2% more
trading costs = 0.5%
stock portfolio = $800,000
solution
we know that here net earnings due to research is expected is
net earnings due to research = 2% - 0.5 % = 1.5 % of stock portfolio
so
spend on research is = 1.5 % of stock portfolio
spend on research is = $800,000 × 1.5%
spend on research is = $12,000
so here when we spend more than $12,000 it end up in a net loss
so the most spend on research will be $12,000