Answer:
a. Profit; $520
b. Firms will enter; Left
c. Zero profits or normal profits
Explanation:
A restaurant is operating in a monopolistic competitive market.
The restaurant is producing 260 meals per day.
This is the profit maximizing level of output where the marginal cost is equal to marginal revenue.
The average total cost at this point is $10.
The price level is $12.
The profit or loss to the restaurant will be equal to the difference between total revenue and total cost.
a. Profit
= Total Revenue - Total cost
= $12
260 - $10 260
= $3,120 - $2,600
= $520
b. This supernormal profit will attract other firms to enter the market, as a result the market share of existing firms will decline. The demand curve of the restaurant will move to the left.
c. In the long run, the firms in a perfectly competitive market earn only zero economic profits as positive profits attract new firms and negative profits cause the firms to leave.
So the restaurant will have zero or normal profits in the long run.
Answer: $4,000
Explanation: Economic profit can be defined as the difference between the total revenues generated from operations and cost incurred plus any opportunity cost taken.
Opportunity cost is the cost of next best alternative foregone, that is loss of profits that occurred due to choosing one alternative over other. In the given case loss of interest and loss of highest salary are opportunity cost for Jacqui .
Hence,
economic profit = revenues - (interest + salary)
= $50,000 - ($1000 + $45,000)
= $4,000
Answer:
Basic corrective action
Explanation:
Basic corrective action is undertaken by management to its staff or employees in order to eliminate further recurrence of non-conformity with organization procedures, rules and policies. The written warning to Elena is an example of basic corrective action in order for her to stop absenteeism from work.
Answer:
0%
30%
Explanation:
Given:
Average return = 15%
Standard deviation = 15%
Computation:
On assuming 68% chance,
Lowest point = Average return - Standard deviation
Lowest point = 15% - 15%
Lowest point = 0%
Highest point = Average return - Standard deviation
Highest point = 15% + 15%
Highest point = 30%
Therefore, on 68%, Lowest point is 0% and highest point is 30%.
Answer:
Intercultural communication is important as it helps in cross culture communication process. It helps in the process where different people belonging to different cultures communicate together on one platform. The communication can be verbal or non verbal among the people who belong to different cultural backgrounds.
Explanation:
High context communication is one in which communication is in such a way that relies heavily on non verbal language and emphasis the cultural values. Low context cultures communication is when people communicate in direct and precise manner. They rely heavily on verbal communication.
