Answer:
Explanation:
Given the following data about Dayna's Doorstep Inc(DD) :
Cost given by; C = 100 - 5Q + Q^2
Demand ; P = 55 - 2Q
A.) Set price to maximize output;
Marginal revenue (MR) = marginal cost (MC)
MR = taking first derivative of total revenue with respect to Q; (55 - 2Q^2)
MC = taking first derivative of total cost with respect to Q; (-5Q + Q^2)
MR = 55 - 4Q ; MC = 2Q - 5
55 - 4Q = 2Q - 5
60 = 6Q ; Q = 10
From
P = 55 - 2Q ;
P = 55 - 2(10) = $35
Output
35(10) - [100-5(10)+10^2]
350 - 150 = $200
Consumer surplus:
0.5Q(55-35)
0.5(10)(20) = $100
B.) Here,
Marginal cost = Price
2Q - 5 = 55 - 2Q
4Q = 60 ; Q = 15
P= 55 - 2(15) = $25
Totally revenue - total cost:
(25)(15) - [100-(5)(15)+15^2] = $125
Consumer surplus(CS) :
0.5Q(55-25) = 0.5(15)(30) = $225
C.) Dead Weight loss between Q=10 and Q=15, which is the area below the demand curve and above the marginal cost curve
=0.5×(35-15) ×(15-10)
=0.5×20×5 = $50
D.) If P=$27
27 = 55 - 2Q
2Q = 55 - 27
Q = 14
CS = 0.5×14×(55 - 27) = $196
DWL = 0.5(1)(4) = $2
Answer: C) the demand for coffee beans has increased
Explanation:
The law of supply states that: "all things being equal" the higher the price the higher the quantity supplied and the lower the price, the lower the quantity supplied.
Coffee growers sold just 200 million pounds of coffee when the price was $2 per pound but they increased their supply of coffee to 240 million pounds when the price per pound is $3.
This is an evidence to show that suppliers supply more products when price increase in order for them to make more profits.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
Month Number of snow cones Total operating costs
January 6,400 $5,980
February 7,000 $6,400
March 5,000 $5,000
April 6,900 $6,330
May 9,000 $7,000
June 7,250 $6,575
To calculate the fixed costs using the high-low method, first, we need to calculate the unitary variable cost:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (7,000 - 5,000) / (9,000 - 5,000)= $0.5 per unit
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 7,000 - (0.5*9,000)= 2,500
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 5,000 - (0.5*5,000)= 2,500
Answer:
B. 14
Explanation:
ES = early start
ES = finished point of the predecessor activity
Considering we have two activities which are:
5-7 which is expected to start at 6 and finish in 5 thus It will end at 11
6-7 which is expected to start at 7 and has a duration of 7 thus, ending at 14
The 7-8 activity will start as soon as the precedecessor end. These activities are finished at point 14 thus, that is the earliest activity 7-8 can start.
The free cash flow can be calculated as below:
Revenue 12000000
Less: Expense (8000000)
Less: Depreciation (1500000)
Earnings Before Tax 2500000
Less Tax (750000)
Earnings after tax 1750000
Add Depreciation 1500000
Total Cash Earnings 3250000
Less: Change in Working Capital (500000)
Less : Purchase of Asset (700000)
Free Cash Flow 2050000
Thus Free Cash Flow can be calculated as above.
