Tu oi, minh co 2 bai Quiz 4 day. Quiz 3 thi de minh tim da nhe, hinh nhu khong luu thi phai.
Linh
Question 1 10 out of 10 points
A monopoly will usually produce
Answer
Selected Answer: where its demand curve is elastic.
Correct Answer: where its demand curve is elastic.
Question 2 10 out of 10 points
Suppose a firm is currently maximizing its profits (i.e., following the MR=MC rule). Assuming that it wants to continue maximizing its profits, if its fixed costs increase, it should
Answer
Selected Answer: maintain the same price.
Correct Answer: maintain the same price.
Question 3 10 out of 10 points
A firm that seeks to maximize its revenue is most likely to adhere to which of the
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Suppose its average cost is $15 and its average variable cost is $8. Its contribution margin (i.e., contribution to fixed cost) is
Answer
Selected Answer: $30.
Correct Answer: $30.
Question 9 10 out of 10 points
Which of the following is true for a monopoly?
Answer
Selected Answer: P > MR
Correct Answer: P > MR
Question 10 10 out of 10 points
Which of the following products is the best example of perfect competition?
Answer
Selected Answer: apples
Correct Answer: apples
2010/1/26 Linh DoQuy Workmail <linhdoquy@gmail.com>
Question 1 10 out of 10 points Which of the following conditions would definitely cause a perfectly competitive company to shut down in the short run?
Answer
Selected Answer: P < AVC
Correct Answer: P < AVC
Question 2 10 out of 10 points Which of the following products is the best example of perfect competition?
Answer
Selected Answer: apples
Correct Answer: apples
Question 3 10 out of 10 points Which of the following is true for a monopoly?
Answer
Selected Answer: P > MR
Correct Answer: P > MR
Question 4 10 out of 10 points When a firm produces at the point where MR = MC, the profit that it is earning is considered to be
Answer
Selected Answer: Not enough information is provided.
Correct Answer: Not enough information is provided.
Question 5 10 out of 10 points Assume a profit
Total contribution needed to cover the old fixed costs + new fixed cost + profit is just the three factors added together.
New Contribution Margin = New Price per unit – Variable cost per unit =$8.5-$2.5 =$6
* If the fixed cost rose to 20% the total margin cost would be $ 87,580 which would be a substantial increase of $16,112 from question 1
-Mohair farmers have earned a subsidy from the federal government for decades because the mohair farmers can get large payments from the government without taxpayers ever really noticing because the farmers who get the subsidy care a lot about it, while the rest of us taxpayers (paying mere pennies extra in taxes) do not really care. And, “any politician with a preference for job security can calculate that a vote for the mohair subsidy will earn the strong support of the mohair farmers while costing nothing among other voters” (Wheelan 177).
A corporate business enterprise is established under a specific legal framework where laws governing the operations and functioning of the enterprise are outlined. The activities of the enterprise are monitored and therefore such an enterprise is recognized by law. This is important due to the fact that legal suits can be filed by the enterprise within the provisions of the law.
Throughout this task I will do my best to explain how firms determined to maximize profit do just that. Specifically I will delineate how such firms choose the optimum level of production or output for the goods they produce and how they behave with respect to various elevations of marginal revenue. In my attempt it will be appropriate for me to clarify the definitions of various economic terms in order to assure a proper understanding of my thoughts on this topic, I will provide these definitions throughout.
5. Suggest three (3) reasons a monopoly may or may not be efficient in any economy.
Contribution Margin = (Unit selling price – unit variable cost) / unit selling price = ($9.00 – $2.60) / $9.00 = 0.7111 = 71.111%
Perfect competition is an idealised market structure theory used in economics to show the market under a high degree of competition given certain conditions. This essay aims to outline the assumptions and distinctive features that form the perfectly competitive model and how this model can be used to explain short term and long term behaviour of a perfectly competitive firm aiming to maximise profits and the implications of enhancing these profits further.
This assignment has a maximum total of 100 marks and is worth 10% of your total grade for this course. You should complete it after completing your course work for Units 1 through 5. Answer each question clearly and concisely.
1. SteamScot face a ‘basic economic problem’ what is this ‘problem’ and what is the opportunity cost of the replace and repair programme?
As an example, if fixed costs are $100, price per unit is $10, and variable costs per unit are $6, then the break-even quantity is 25 ($100 ÷ [$10 − $6] = $100 ÷$4). When 25 units are produced and sold, each of these units will not only have covered its own marginal (variable) costs, but will have also have contributed enough in total to have covered all associated fixed costs. Beyond these 25 units, all fixed costs have been paid, and each unit contributes to profits by the excess of price over variable costs, or the contribution margin. If demand is estimated to be at least 25 units, then the company will not experience a loss. Profits will grow with each unit demanded above this 25-unit break-even level.
Most companies are profit oriented. Companies survive and live on profit. Even governmental institutions, NGO's and NPO's are profit oriented, what they do with profit is different though. Saying this means that companies seek always to be at a position where profit is maximized. As we know by now this happens when MC=MR but this is an always changing point as supply and demand are dynamic, effectively meaning that if firms get it right once they can't just do the same eternally, they still need to adapt to every market factor as a new change is a new reality all together that needs to be studied and addressed. All