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Ann [662]
2 years ago
14

Assume that Clark Electronics has a monopoly in the production and sale of a new device for detecting and destroying a computer

virus. Clark Electronics currently incurs short-run losses, but it continues to operate.
a. What must be true for Clark to continue to operate in the short run?
b. Draw a correctly labeled graph, and show each of the following for Clark.
i. The profit-maximizing price and output
ii. Area of loss
C. Assume Clark is maximizing profit. What will happen to its total revenue if Clark raises its price? Explain.
d. If demand for the new device increases, explain what will happen to each of the following in the short run.
i. Profit-maximizing output
ii. Total cost
Business
1 answer:
Triss [41]2 years ago
3 0

Solution :

c. MC=MR is the profit maximizing equilibrium point. The price rise beyond that is likely to raise the total revenue. But the total cost might increase equally or more then that to nullify or decrease the profit.

d. (i). The demand increase implies that the AR (demand) curve shifts rightwards. This will increase the equilibrium price.

(ii). Change in demand does not affect the total cost.

a. Monopoly might continue to produce in short earn even if its AR < AC. It continues to do so until shut down point. It refers that production continued until average revenue (AR) is greater than equal to the average variable cost (AVC). The monopoly is a market with a single seller.

This market's average revenue (AR) demand curve is above its marginal curve . The curves are downward sloping, illustrating price demand inverse relationship.

Equilibrium quantity : when the marginal revenue = marginal cost

Equilibrium price : equilibrium quantity corresponding price at AR (demand ) curve.

 

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Explain how each of the five pillars of sustainable change could be applied to sustain the learning organization environment of
Vanyuwa [196]

Answer:

Following are the five pillars of sustainable change could be applied to sustain the learning organization environment of the company:

1) Leadership

2) Strategy

3) Culture

4) Structure

5) System

Explanation:

1) Leadership

Leadership provides the way forward for sustainable change i.e. they show the right direction to their employees . They will develop strategies to keep the momentum going within the learning environment that has now been created. Leadership will coach and mentor individuals, teams, and departments to keep the new systems in alignment and working well together.

2) Strategy

By strategizing means to get positioned itself as a market leader or more customer centric . In order to maintain the competitive edge, development of new learning organizational structure to make good use of all employee knowledge for changes in the market and especially for efficiencies and continuous improvements in operations.

3) Culture

Culture will include the attitude of open communication, a willingness to always be open minded, an encouragement for create thinking and sharing new ideas or conflict, and to support the value of lessons learned from mistakes. It will set the tone for the importance of working together toward a common goal, and will be dedicated to recognizing accomplishments to inspire innovation.

4) Structure

Deciding about the best organizational structure, say the flat one. This will allow employees to communicate freely, share knowledge in real time and work and problem solve cross-functionally. Since the company promotes culture that encourages creative thinking, the employees are confident their talents are being used at the highest capacity to support the company’s drive for continuous improvement.

5) System

As part of the change management project, reliance on new technologies and system is increasing, and using of expert and decision making system, stronger controls can be in placed which would be asset to the learning organization.

5 0
2 years ago
At the local banking institution the branch manager doubles as the IT "go-to" by handling printer setups, resettingLAN passwords
andrezito [222]

Answer: d. The FTC’s Red Flags Rule

Explanation:

The Federal Trade Commission has a Red Flags Rules that requires that financial institutions like Banks should implement a program that is capable of flagging instances of suspicious activity that could point to identity theft in the covered accounts that it holds.

This bank's customers are seeing some suspicious activity in their checking accounts which could point to a case of identity theft. The Red Flags rule could therefore be the most relevant rule to the manager's discovery.

3 0
2 years ago
If we accept "consumer satisfaction" as the objective of our macro-marketing system, this means that: consumer educators should
Ad libitum [116K]
If we accept "consumer satisfaction" as the objective of our MACRO-marketing system, this means that <span>each consumer should decide how best to satisfy his or her own wants. In marketing, there are 4 Ps which are product, price, plan and promotion. Regarding MACRO-marketing, this is the study on how marketing (the 4 Ps) impacts our economy and society. Since each consumer can decide what is best for them, experts then see what each consumer desires and tries to make items appeal to them. </span>
5 0
2 years ago
All of the following are true about the basic EOQ model except One half the order size equals the average inventory level. The a
Gemiola [76]

Answer:

Hence, the second statement describing the average inventory is false

Explanation:

<em>The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost. It is the order size that optimizes the investment in stock ordering</em>.

The following statements

The number of orders = Annual demand/order size

Re-order level(point) Average daily usage × average lead time

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The average Dollar value = Unit price × average inventory

Hence, the second statement describing the average inventory is false

7 0
1 year ago
At the beginning of the year, Brick Makers had cash of $183, accounts receivable of $392, accounts payable of $463, and inventor
Pie

Answer:

amount of the net source $15

Explanation:Working\ capital= Current\ assets-Current\ liabilities

source\ of\ cash =[Cash+AR+Inventory]- [Amount\ Payable]

cash = $183

received amount = $392

inventory =$714

payable amounts =$463

current assest = (183+392+714)-463=$826

current liabilities =(167+682+409-447)=$811

cash = $167

received amount = $409

inventory =$682

payable amounts =$447

current liabilities =(167+682+409-447)=$811

Hence since current liabilities is more than current assests, therefore there will be loss of accounts

Hence source of cash= (826-811) = $15.

7 0
2 years ago
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