A firm has a demand curve: P = 403 – 2Q and Total Cost = 100 + 3Q
Find equations for:
a. Total Revenue
b. Marginal Revenue
c. Marginal Cost
d. Find the profit-maximizing Quantity
e. If we cut the firm’s Fixed Costs in half, would the answers to any of the above (parts a
through d) change? Explain. (You don’t need to redo them all, just explain the basic concept.)
Answers
a. Total Revenue (TR) = (403 - 2Q) * Q
b. Marginal Revenue (MR) = 403 - 4Q
c. Marginal Cost (MC) = 3
d. Profit-maximizing Quantity (Q) = 100
e. Halving the firm's fixed costs may potentially change the profit-maximizing quantity as it can affect the breakeven point and overall profitability. However, it does not directly impact the equations for total revenue, marginal revenue, and marginal cost.
a. Total Revenue (TR) can be calculated by multiplying the price (P) by the quantity (Q) sold. In this case, TR = P * Q. Substituting the given demand curve equation, we have TR = (403 - 2Q) * Q.
b. Marginal Revenue (MR) is the change in total revenue resulting from selling one additional unit of the product. Mathematically, MR is the derivative of the total revenue function with respect to quantity (Q). Taking the derivative of the total revenue equation found in part a, we get MR = 403 - 4Q.
c. Marginal Cost (MC) represents the change in total cost resulting from producing one additional unit of the product. Since the total cost equation is given as TC = 100 + 3Q, MC is the derivative of the total cost function with respect to quantity (Q). Taking the derivative of the total cost equation, we find MC = 3.
d. To find the profit-maximizing quantity, we need to set MR equal to MC and solve for Q. In this case, setting 403 - 4Q equal to 3, we get 4Q = 400, which gives Q = 100.
e. If the firm's fixed costs are halved, it will not directly affect the equations for total revenue (a), marginal revenue (b), and marginal cost (c) since these equations are solely based on the demand and cost functions. However, the profit-maximizing quantity (d) may change because lower fixed costs can reduce the breakeven point and potentially lead to a different quantity that maximizes profits. The change in fixed costs could affect the overall profitability of the firm and potentially shift the optimal quantity.
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Related Questions
please help (;´༎ຶٹ༎ຶ`)
Answers
Lenders who make FHA loans must be approved by:
Answers
Answer:
FHA loans are loans from private lenders that are regulated and insured by the Federal Housing Administration (FHA), a government agency.
Explanation:
The FHA doesn't lend the money directly–private lenders do.
I rlly need answers quick guys! This isnt Business tho!
Subtracting money.
$ c. $ c.
395.12 - 275.64
Answers
Answer:
$119.48
Explanation:
hope this helped :)
Hi can you please answer this question for me?
___________________________ is the interest that the bank pays you on the principal plus on the interest that you earned the preceding year
simple intrest
compound interest
complex interest
Answers
Answer:
compound interest
Explanation:
Compounding interest refers to the action of adding the interest earned in a period to the principal amount. This action increases the principal amount invested. In compound interest, both the principal amount and the interest earned increases every financial year.
Compound interest contrasts with simple interest, which is the interest earned on the principal amount only. Whereas compound interest amount increases every year, simple interest remains constant throughout the life of the investment.
Answer:
Compound Interest
Explanation:
We are a regional leader in industrial ice machines and only face competition from one other vendor in our relevant market. Because of our preferred supplier contracts we are able to bring our product to the market before our rival does, so we currently have a Stackelberg leadership advantage.
Moreover, we are out competing our rival in terms of marginal costs. Our accounting department has informed me that our monthly costs are roughly C(Q1) = 1,200 + 4Q1, while those of the competitor are C(Q2) = 1,000 + 8Q2.
According to our sales department we are both facing the following inverse monthly market demand curve: P(Q) = 600 – 2Q.
Since we have enough capacity to supply the entire relevant market in this time period, we are considering buying the rights of our competitor to become the sole supplier to the relevant market. Before I go into negotiations, I would like you to estimate what our maximum willingness to pay should be for monopoly control of the relevant market. I want to make sure that I do not over-pay!
Answers
We are a regional leader in industrial ice machines and only face competition from one other vendor in our relevant markets the scope element of a strategy is most closely tied to the markets we wish to compete in.
A company may employ this tactic to provide products or services to a certain consumer. When firms want to reuse or resell the products or services of another, business markets frequently make this possible.
• Four segments make up the commercial market.
costs are roughly C(Q1) = 1,200 + 4Q1, while those of the competitor are C(Q2) = 1,000 + 8Q2. They comprise the producer, institutional, government, and reseller markets. Businesses that purchase products in producer marketplaces do so with the goal of turning a profit.
• Your understanding of the six market segmentation categories—transactional, needs-based, needs-based geographic, psychographic, and demographic—is now complete.
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why is rationing sometimes good
Answers
Answer:
I got you gurl, becuase you could potentially change how it fits some places or put the good face facing forward, or if it was your pillow, to have the best sleep on the cold side, you never know everthing has its advantages, btw im supposed to do my hwk rn and i got bored so i dediced to be a good person and snoop around for some good questions to answer!!
freshman- doing biology hwk!
good luck ~ hope this helps!!
Explanation:
yall, life is goood!
Answer:
Rationing is the practice of controlling the distribution of a good or service in order to cope with scarcity.Explanation:
Hope It HelpsTalk about the challenges that can arise when forest and mineral
resources are found in the same region. What options are there for
resolving the problems? With reference to hoteling rule (25
points)?
Answers
When forest and mineral resources are found in the same region, challenges may arise.
The challenges that can arise when forest and mineral resources are found in the same region include the following:
One of the most significant challenges that arise is the question of how the resources in question will be allocated. Because both resources are valuable, it can be difficult to determine which resource should take precedence. When one resource is prioritized over another, it can result in resource depletion and a host of other problems.
Resource depletion is another major challenge that arises when forest and mineral resources are found in the same region. Because both resources are valuable, they are often over-exploited. This can result in the loss of habitat, the extinction of certain species, and the depletion of soil fertility. In turn, these can have far-reaching effects on the ecosystem as a whole.
There are several options for resolving the challenges that arise when forest and mineral resources are found in the same region.
One such option is to use the hoteling rule, which is a method for determining the optimal rate of resource extraction over time. The hoteling rule suggests that the optimal rate of resource extraction is the rate at which the marginal benefit of using an additional unit of the resource is equal to the marginal cost of extracting it. By using this rule, policymakers can ensure that the resources in question are being used in a sustainable manner.
In turn, this can help to mitigate the challenges that arise when forest and mineral resources are found in the same region.
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Chapter 2 Mastery Problem
The T –
Hassan Rahim won a concession to rent bicycles in the local park during the summer. During the month of June, Hassan completed the following transactions for his bicycle rental business:
Chart of Accounts
Cash
Hassan Rahim Capital
Accounts Receivable
Hassan Rahim, Withdrawals
Supplies
Rental Income
Shed
Wages Expense
Bicycles
Maintenance Expense
Accounts Payable
Repair Expense
Concession Fee Expense
June
2
Began business by placing $7,200 in a business checking account.
3
Purchased supplies on account, $150
4
Purchased 10 Bicycles for $2,500, paying $1,200 down and agreeing to pay the rest in thirty days.
5
Purchased for cash a small shed to hold the bicycles and to use for other operations, $2,900
6
Paid cash for shipping and installation costs (considered as an addition to the cost of the shed) to place the shed at the park entrance, $400.
8
Received cash of $470 for rentals during the first week of operation.
13
Hired a part-time assistant to help out on weekends at $7.50 per hour
14
Paid a maintenance person to clean the grounds, $75.
15
Received cash, $500, for rentals during the second week of operation.
16
Paid the assistant for a weekend’s work, $150.
20
Paid for the supplies purchased on June 3, $150.
21
Paid repair bill on bicycles, $55.
22
Received cash for rentals during the third week of operation, $550.
23
Paid the assistant for a weekend’s work, $150.
26
Billed a company for bicycle rentals for an employee outing, $110
27
Paid the fee for June to the Park District for the right to the bicycle concession, $100.
28
Received cash for rentals during the week, $410.
29
Paid the assistant for a weekend’s work, $150.
30
Transferred $500 to personal checking account.
Answers
Answer:
27.
Explanation:
Write a three- to five-sentence paragraph that defines economics. Based on your definition, explain why it is difficult to consider economics an exact science. You may want to consider how economists approach economics to help you explain your answer.
Answers
Answer: See explanation
Explanation:
Economics is referred to as a social science that is concerned with how goods are produced, how they're distributed and how they're consumed. Economics is the social science that studies why human beings behave the way that they do.
It is difficult to consider Economics as a science because it lacks a hypotheses that's testable. Also, there is lack of consensus and the scientific method is not followed in Economics.
Steele Corporation has the following information for January, February, and March:
January February March
Units produced 10,000 10,000 10,000
Units Sold 7,000 8,500 10,500
Production costs per unit (based on 10,000 units) are as follows:
Direct materials per unit
$12
Direct labor per unit 8
Variable overhead per unit 6
Fixed overhead per unit 4
Variable selling cost per unit 10
Fixed selling & administrative costs per unit 4
There were no beginning inventories for January, and all units were sold for $50. Costs are stable over the three months. Absorption costing income for March was _____________ than variable costing income.
Answers
Answer:
d. $2,000 less
Explanation:
The computation is shown below:
Particulars January February March
Units beg.
inventory 0 3,000 4,500
Units produced 10,000 10,000 10,000
Units sold -7,000 -8,500 -10,500
Units ending
inventory 3,000 4,500 4,000
Now
= $4 × (4,500 - 4,000)
= $2,000
So, here the income arise from absorption costing should be lower than the variable costing as the inventory is reduced
It is important to find a hotel that has a five star rating to base the training off of. what aspect of service quality would this be considered?
Answers
The aspect of service quality would be the objective measure of goodness.
What is service?In contrast to products, which we can physically touch or handle, services are the non-physical, intangible components of our economy.The majority of the economies of the wealthy countries are based on services like banking, education, healthcare, and transportation. They also represent the bulk of the economies of the developing countries. There is no transfer of ownership when a business offers a service and the client pays for it. We are unable to ship or store a service. They are only present as long as the customer is consuming them and the provider is supplying them.For instance, getting a haircut is a service that cannot be stored or transported.
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Eastern Motors Auto Dealership wanted to estimate the average CLV over a 5 year time horizon of a customer who purchases a new vehicle. The average vehicle sells for $25,148 and has a margin of 8%. Based on historical averages, 89 of people buying a new vehicle at Eastern will return for service 7 times over the next 5 years. Though it varies considerably, Eastern generates approximately $96 in margin on each service visit after accounting for parts and direct labor costs.
Not including service, what is the average dollar margin for each new vehicle sold?
Answers
The total estimated CLV over a 5 year time horizon for someone who purchases a new vehicle at Eastern Motors is $2,609.92
Given,
Year time horizon = 5 year
Average vehicle sells for = $25,148
Margin = 8%
So, margin on selling vehicle = Average vehicle selling price * Margin = $25,148 * 8% = $2,011.84
Margin generated by 89% of people who return for service over 5 years = Number of times * Margin generated on each service = 7 * $96 = $672
Total estimated customer lifetime value (CLV) at Eastern Motors = Margin on selling vehicle + (Margin generated by 89% of people who return for service over 5 years * 89%) +
(Margin generated by 226% of people who do not return for service over 5 years * 22%) = $2,011.84 + ($672 * 89%) + ($0 * 22%) = 2,609.92
Hence, the total estimated CLV over a 5 year time horizon for a person who purchases new vehicle at Eastern Motors is $2,609.92
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A government spends money in order to:
O A. make sure government programs can function properly.
B. influence which products will be available to U.S. consumers.
C. prevent foreign businesses from competing with U.S. companies.
O D. decide what each employee at a U.S. company will be paid. SUBMIT
Answers
Answer:
A. make sure government programs can function properly.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The different types of tax include the following;
1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
The main reason for government spending such as building public schools, power supply, water, development of infrastructures, etc., is to ensure and facilitate the proper functioning of all government programs.
Hence, the government of a particular country is saddled with the responsibility of spending on basic projects or programs so as to create a sustainable, growing and efficient economy for its citizens.
which one of the government actions would most enhance efficiency in a free market, according to most economists? allocating resources to ensure adequate production of goods that are produced at less cost overseas protecting private property regulating profits to prevent extreme disparities in wealth placing limits on the amount that landlords can increase rent to protect renters per most economists, which of the possible government activities would not enhance the operation of a free market? issuing a patent for a water purifier that prevents anyone but the inventor from producing it providing legal protection equally enforcing a contract between a restaurant and a local farmer promising farmers a certain price for their crops to keep them profitable
Answers
Allocating resources to ensure adequate production of goods that are produced at less cost overseas would most enhance efficiency in a free market, according to most economists.
The government action that would most enhance efficiency in a free market, as supported by most economists, is allocating resources to ensure adequate production of goods that are produced at less cost overseas. This refers to the concept of comparative advantage, which suggests that countries should specialize in producing goods for which they have a lower opportunity cost compared to other countries. By allowing resources to flow towards industries where they can be utilized most efficiently, countries can take advantage of cost savings and increase overall economic efficiency. This action promotes international trade and allows consumers to access goods at lower prices, leading to greater economic welfare.
On the other hand, issuing a patent for a water purifier that prevents anyone but the inventor from producing it, while providing legal protection and enforcing a contract between a restaurant and a local farmer promising farmers a certain price for their crops, would not enhance the operation of a free market. These government activities create artificial barriers to entry and hinder competition. Patents, although intended to incentivize innovation, limit competition by granting exclusive rights to the inventor, potentially leading to higher prices and reduced consumer choice. Similarly, enforcing contracts that promise certain prices or providing protection to specific industries can distort market forces and hinder the efficient allocation of resources. Free markets thrive on competition and the unrestricted flow of goods and services, allowing market forces to determine prices and encourage innovation and efficiency.
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what do you understand by attributes in HTML?
this question is of computer.
Answers
Use this formula to help solve the problem.
• gross income = total of all incomes added together
Given the following information what does the gross income for the month equal?
Cash $100, Checks = $200, Credit Card Charges = $400
O $600
O $300
O $700
O $500
Answers
What has the biggest positive impact on workplace cooperation?
Answers
Answer: I would say its being able to talk to people and be social and not awkward
Explanation:
Listing contracts, disclosures, and seller net sheets all have to do with
an understanding of:
Answers
Answer:the seller's expected expenses related to the transaction and the expected profit based on a specific sales price.
Explanation:
what are the benefits to boeing for outsourcing the manufacturing parts of the 787 to foreign companies that manufacture outside the u.s
Answers
The benefits to Boeing for outsourcing the manufacturing parts of the 787 to foreign companies that manufacture outside the US include lower labor costs, access to specialized expertise, and the ability to focus on their core competencies.
By outsourcing to foreign companies, Boeing can take advantage of lower labor costs in other countries, which can help reduce the overall cost of production. Additionally, outsourcing allows Boeing to access specialized expertise that may not be available within the US, which can improve the quality of their products. Finally, by outsourcing the manufacturing of certain parts, Boeing can focus on their core competencies, such as design and engineering, which can help improve the overall efficiency and effectiveness of their operations.
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what financial tools described in this chapter can help you make better financial decisions?
Answers
There are several financial tools described in this chapter that can help individuals make better financial decisions. These tools include budgeting, financial planning, investment strategies, risk management, credit monitoring, and debt management.
By utilizing these tools, individuals can gain a better understanding of their financial situation, develop a plan to achieve their financial goals, and make informed decisions about spending, saving, and investing.
Additionally, tools such as financial calculators, financial software, and online resources can provide valuable insights and guidance for making smart financial decisions.
Overall, the use of these financial tools can help individuals achieve greater financial stability and success.
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If motorcycles have elastic demand, how would a small increase in price affect demand for motorcycles?
Answers
Answer:not much
Explanation:
If it's elastic then i switchs
Yvette, age 72, just purchased a long-term care partnership policy. Based on NAIC standards, all of the following must be included in her policy EXCEPT:
a. coverage for home and community-based care
b. inflation protection
c. an extension of benefits provision
d. an offer to purchase a nonforfeiture benefit
Answers
Yvette, age 72, just purchased a long-term care partnership policy. Based on NAIC standards, all of the following must be included in her policy EXCEPT an extension of benefits provision
According to NAIC (National Association of Insurance Commissioners) standards, all of the listed options are typically required to be included in a long-term care partnership policy except for an extension of benefits provision. The other options, such as coverage for home and community-based care, inflation protection, and an offer to purchase a nonforfeiture benefit, are commonly included to ensure comprehensive coverage and protection for policyholders. However, the specific requirements may vary by state, so it is important to consult the relevant regulations and guidelines for the specific jurisdiction in question.
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Why is a higher interest rate important when saving money?
Answers
A higher interest rate is important when saving money because it allows for greater growth of your savings over time.
Interest rates are the percentage of the principal (or original amount of money) that is added to your savings each year. With a higher interest rate, the amount of money you earn in interest will be greater, allowing you to accumulate more savings over time. This is especially important for long-term savings goals, such as retirement or saving for a down payment on a house.
By choosing a savings account or investment option with a higher interest rate, you can maximize the growth of your savings and reach your financial goals more quickly.
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Assume you are using the dividend growth model to value stocks.
If you expect the market rate of return to increase across the board on all equity securities, then you should also expect the:
a. market values of all stocks to increase, all else constant.
b. market values of all stocks to remain constant as the dividend growth will offset the increase in the market rate.
c. market values of all stocks to decrease.
d. dividend-paying stocks to maintain a constant price while non-dividend paying stocks decrease in value.
e. dividend growth rates to increase to offset this change.
Answers
If you expect the market rate of return to increase across the board on all equity securities, then you should also expect the market values of all stocks to decrease as per dividend growth model. The correct option is C.
What is the dividend growth model?
The dividend growth model (DGM), also known as the Gordon growth model, is a valuation technique that investors and analysts use to estimate the value of a stock based on its future dividends. The dividend growth model assumes that the value of a stock is the sum of all future dividend payments, discounted back to their present value using a rate that represents the investor's required rate of return.As per the question, if you expect the market rate of return to increase across the board on all equity securities, then you should also expect the market values of all stocks to decrease.
Thus, the correct option is c. market values of all stocks to decrease.
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What does a single point on the supply curve represent?a. The cost of producing the given quantity of filmb. the amount of profit the producer hopes to receivec. the cost, at the current level of production, of producing one more roll of filmd. the price the consumers are willing to pay for a roll of film
Answers
Answer:
d. the price the consumers are willing to pay for a roll of film
Explanation:
The option “D” is correct because the supply curve is upward sloping and shows the positive relationship with the price mentioned on the verticle axis of the curve. This price is the same price that a person pays for the commodity. If the price paid by the person is more, then the supplier will supply more. If the price is lower, then the supplier will supply less. Thus, this shows that price and supply and positively related to each other.
What does the phrase "like animals escaped from their caves" imply about the sun's impact on the children?
Answers
How do employers figure out how much federal income tax to withhold from your paycheck?.
Answers
Employers use the employee's Form W-4 and the IRS's income tax withholding table to determine the amount of federal income taxes they should withhold from an employee's salary or compensation.
Explain about the federal income tax?
Seven tax brackets apply to federal income: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. Your filing status and taxable income define your tax bracket.
Individuals' wages and salaries, investment income, and other types of income are all subject to income taxes. The second-largest source of federal revenue, accounting for nearly one-third of all annual receipts, payroll taxes support Social Security, Medicare, and unemployment benefits.
In a nutshell, we take gross income and subtract tax deductions to estimate taxable income. Taxable income is all that is left. Then, to determine the amount of tax due, we apply the correct tax bracket (depending on income and filing status).
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A supplier is an external stakeholder that?
Answers
Answer: A supplier is an external stakeholder that a business must communicate with.
Explanation: It is very important that good communication is maintained with suppliers as they provide the goods and services that are necessary for a business to operate.
The chapter explain five international marketing orientation. Which one mot applie to Tommy Hilfiger? Explain why
Answers
Utilizing a marketing mix framework that includes the 4Ps, Tommy Hilfiger's marketing strategy analyses the brand.
What is Tommy Hilfiger Product Strategy?Following are explanations of the product mix and strategy used by Tommy Hilfiger in its marketing campaign:Having a broad selection of garments and a significant global presence, Tommy Hilfiger is a well-known fashion brand. Numerous products in the high-end fashion and lifestyle segments are available from Tommy Hilfiger. In addition to focusing on American classic designs and giving them a contemporary spin, they offer buyers style, quality, and value. Its marketing mix offers a variety of product categories, such as: Denim GarmentsA watchShoesHandbags. Home furnishings and style Flavorings Eye protectionThe company has introduced a number of lines of brands and collections that enable it to appeal to a wider range of customers while also comprehending the various fashion preferences of each section. With offerings for men's, women's, men's, women's, shoes, and accessories, Tommy Hilfiger's core product line offers designs across 25 categories and is targeted at customers aged 25 to 40. There is a children's section of Tommy Hilfiger's website. The 18 to 30 age group is the target market for the Tommy Hilfiger Denims brand, which features more edgy and casual designs.To Learn more About Tommy Hilfiger's marketing strategy refer To:
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A key assumption of the supply and demand model is that: firms will continue to raise prices until profits become positive. each firm produces at a level of output at which price exceeds marginal cost. each firm's good is unique and cannot be duplicated by other firms in the market. each firm in the market produces an identical good.
Answers
Answer:
each firm in the market produces an identical good.
Explanation:
In the case of the supply and demand model there is a key assumption that tells that each & every firm in the market would generate or produce the same kind of good as it produced homogenous product instead producing different kind of goods
So according to the given situation the last option is correct
ANd the rest of the options would be wrong