Answer:
a. 1, 5 and 7
b. Resources will be allocated inefficiently
c. Differing sizes and capacities
d. Benefits due to economies of scale
e. Reduce prices and improve resource allocation.
Explanation:
The correct combination is 1, 5 and 7. The price of a pure monopoly firm is much higher than that of purely competitive firm because the later is a price taker while the former is a price fixer. Because of this, output of monopoly is lower while the profit margin is higher than that of competitive firm.
Assuming that a pure monopolist and a purely competitive firm have the same unit costs. In the case of a pure monopolist, resources will be allocated inefficiently because the monopolist does not produce at the point of minimum Average Total Cost and does not equate price and Marginal cost.
Even though both monopolists and competitive firms follow the MC = MR rule in maximizing profits, there are differences in the economic outcomes because pure competitors lack capacity and are smaller in size while the monopolist has the capacity to expand inorder to maximize profits.
The costs of a purely competitive firm and a monopoly may be different because the monopolist is capable of taking advantage of cost reduction arising from economics of scale. Pure competitors does not experience economies of scale due to their small sizes.
If a monopoly can experience economies of scale, it can reduce prices beyond that of the pure competitor thereby ensuring a more efficient resource allocation.
Answer:
It will take 51 months.
Explanation:
As we know the constant payment of $290 monthly is the annuity payment to pay $12,000 with interest rate of 0.84% per month. The Number of Months can be calculated by following formula.
Loan amount = PV = $12,000
Rate of interest = r = 0.84 %
Monthly Payment = P = $290
PV of annuity = P x [ ( 1- ( 1+ r )^-n ) / r ]
$12,000 = $290 x [ ( 1 - ( 1 + 0.84% )^-n / 0.84% ]
$12000 x 0.84% / $290 = 1 - ( 1 + 0.84% )^-n
0.347586 = 1 - ( 1 + 0.84% )^-n
0.347586 - 1 = - ( 1 + 0.84% )^-n
-0.652414 = - ( 1 + 0.84% )^-n
1 / 0.652414 = 1.0084^n
1.532769 = 1.0084^n
Log 1.532769 = n x log 1.0084
n = Log 1.532769 / log 1.0084
n = 51
Answer: exchange
Explanation: Brianna is most likely to use the exchange influence tactic which is given as a tactic that suggests that making express or implied promises and trading favors. This is observed when she proposes that Ollie pay its employees on their breaks instead of making them clock out in response to the new employee end-of-shift policy. The tactics is especially useful for influencing peers and surbodinates.
Answer:
a. -$210,000
b. $455,000
Explanation:
a. Company's net income
Sales. 2,275,000
Less:
Cost of goods sold
1,285,000
Administrative and selling expenses
535,000
Depreciation expense
420,000
EBIT
35,000
Less interest
245,000
Taxable income
-$210,000
Taxes 21%
Nil
Net income
-$210,000
b. The operating cash flow for the year
OCF = EBIT + depreciation - taxes
OCF = 35,000 + 420,000 - 0
OCF = $455,000
c. Net income was negative due to the deductibility of interest expense and depreciation.
The actual operating cash flow was positive due to the fact that depreciation is a non cash expense, and also interest is a financing and not an operating expense.
Based on earlier studies or history of the supermarket they would know when the busy times of the day are, with that they would deliver in more crowd.
They would need the various server systems to cost out how many crowds they would want to have worked to help limit the number of customers in line and their wait time in line.
