To maximize profit, a monopolist will produce and sell a quantity such that for the last unit sold, marginal revenue equals marginal cost, and charges a price given by the demand curve at that output level.

a. True
b. False

Answers

Answer 1

Answer:

True.

Explanation:

True, the statement given is true because the profit maximization condition of the monopolist is “MR=MC” and it charges the price that is derived from the demand curve. For a monopolist, the demand curve and the marginal revenue (MR) curve is downward sloping. Therefore, the point where the marginal cost (MC) curve cuts the marginal revenue (MR) curve is the profit-maximizing point.


Related Questions

Match each example of a study to the type of method used. researchers develop a survey and ask the same questions to 40,000 randomly selected people. researchers interview or survey the same 1,000 families every 5 years over a 40-year period. researchers conduct long interviews with open-ended questions with 40 couples. researchers observed 15 families in their homes over a period of 1 year. researchers survey family members on how many hours per week they spend doing various tasks or ask them to keep a diary of what they do every 30 minutes over an entire day over a period of a week.

Answers

Answer:

1. Researchers develop a survey and ask the same questions to 40,000 randomly selected people. - Sample Survey

Sample surveys involve using a subset of the population that is randomly selected as the basis for the research.

2. Researchers interview or survey the same 1,000 families every 5 years over a 40-year period. - Longitudinal survey

In a Longitudinal survey, participants are observed and studied at regular intervals over a period of time which can either be long or short term.

3. Researchers conduct long interviews with open-ended questions with 40 couples. - In-depth Interviews

In-depth interviews aim to find out as much on a topic as possible and as such can take some time to complete. Questions are usually open ended so subjects can express themselves fully.

4. Researchers observed 15 families in their homes over a period of 1 year. - Observation

Observational study involves observing the subjects often in their natural settings.

5. Researchers survey family members on how many hours per week they spend doing various tasks or ask them to keep a diary of what they do every 30 minutes over an entire day over a period of a week. - Time use studies.

Time use studies are studies on the way people spend their time which is what the researchers here hope to find out.

Gundy Company expects to produce 1,200,000 units of Product XX in 2017. Monthly production is expected to range from 80,000 to 120,000 units.
Budgeted variable manufacturing costs per unit are direct materials $5, direct labor $6, and overhead $8. Budgeted fixed manufacturing costs per unit for depreciation are $2 and for supervision are $1.
In March 2017, the company incurs the following costs in producing 100,000 units: direct materials $520,000, direct labor $596,000, and variable overhead $805,000. Actual fixed costs were equal to budgeted fixed costs.
Required:
1. Prepare a flexible budget report for March.
2. Were costs controlled?

Answers

Answer:

Gundy Company

Flexible production budget report

For the month of March, 202x

                                               budgeted        actual            variance

                                               costs                costs

Units produced                      100,000           100,000              -

Variable costs:

direct materials              $500,000       $520,000      $20,000 Udirect labor                     $600,000       $596,000        $4,000 Fvariable overhead          $800,000       $805,000       $5,000 U

Fixed costs:

Depreciation                   $200,000       $200,000            -Supervision                     $100,000        $100,000             -

Generally when we say that costs were controlled or under control, we mean that actual costs were equal or less than the budgeted costs. Only direct labor and fixed costs can be considered controlled, since we have unfavorable variances for direct materials and overhead.

Anheuser-Busch and Miller Brewing both experienced market failures in the United Kingdom when they used the phrase "light beer" which was misinterpreted as

Answers

Answer:

"Having reduced alcohol levels" is the correct answer.

Explanation:

The given is seems to be an American beer organization with its headquarters throughout St. Louis, Missouri. It would be the world has ever known largest revenue-based brewing firm, although 3rd in brewing volume, until InBev confirmed its investment procurement 13 July in the year 2008.Ever since they suffered negative externalities throughout the UK when they used the term " light or hot beer" which again was misunderstood as having reduced caffeine contents.

"For an investor seeking a tax sheltered investment, the primary advantage of a real estate direct participation program is the:"

Answers

Answer:

ability of the program to generate losses for tax purposes but provide positive cash flow.

Explanation:

To estimate a stock's beta from historical data, we should regress the (excess) return of the stock on the (excess) return of _____.

Answers

Answer: c. the market portfolio

Explanation:

A stock's beta measures how the stock moves in relation to the general movement of the market. It is therefore possible to estimate it based on the returns of both the market and the historical return of the stock.

To do so, one can run a regression analysis of the excess return of the stock on the excess return of the market portfolio. This will allow for knowing the amount of risk that is from the market and the one from the stock itself thereby allowing for the calculation of the stock's beta.

According to Accenture's Technology Vision 2014, becoming a(n) _______ is crucial to how enterprises innovate and differentiate from competitors.

Answers

Answer:

Truly digital business.

Explanation:

Accenture's technology team are seen to take researches on companies that have technological features are most times results from their desk are set to be criterion or bench mark to tech development to ever company that wants/have dealings with technological materials.

Their approach compels firms to savage tech opportunities, utilizing them for the growth of their companies. Therefore companies that aim at growing further in this form in era like this details that everyone has an app. Furthermore, companies that are dominating in the mobile space don’t stop at offering. Also companies that put digital at the center of what they do know where their customers are attacking them rightly or not.

WalMart grants credit to consumers who purchase for personal or family use. This type of credit is called:

Answers

Answer:

consumer credit

Explanation:

The type of credit being mentioned is known as consumer credit. This is a personal debt taken on by the future consumer in order to be able to purchase goods and/or services. This includes any type of personal loan used for this reason such as a credit card, mortgage loan, or even a store grant like the one that WalMart is providing in this scenario. Such store loans are usually given to individuals which will buy the goods and services from the store that provided the loan.

Why is a football game on ESPN a quasi-public good but a game on the NBC, CBS, or ABC is a public good

Answers

Answer:

The correct answer is explained below.

Explanation:

To begin with, the concept of a "Quasi-public good" refers to the type of good  that has the characteristics of both the private goods and the public goods. A common example of them are the roads and the tunnels. These goods has partial excludability, partial rivalry, partial diminishability and partial rejectability and the market for them are considered to be incomplete markets.

Secondly, when it comes to the football game on ESPN the good is considered to be a quasi-public one due to the fact that the channel is only for sports and the company provides the service to the operator who provides it to the consumer who wants that specific service and it does it after collecting some charges for telecasting the channel and that is why the good is quasi-public.

"A Registered Investment Adviser has a retired client who wishes to put aside funds for the purchase of a car 5 years from now. Preservation of capital is important to this client. The RIA should recommend investments in:"

Answers

Answer:

C. I, II, III

Explanation:

As it is mentioned that the customer wants the funds for the 5 years and the preservation of the capital is significant to the client.

In this, the certificate of bank and the money market is relevant, also the 5 year treasury bond is considered as the fund is required for 5 years so it would be matured till that time

But the treasury strips for the 30 days is not considered as the given time period is 5 years but it is only for 30 days

Hence, the correct option is C.

If a short-run equilibrium occurs at a level of output above the natural rate, then in the transition to the long run prices will ______, and output will ______.

Answers

Answer: increase; decrease

Explanation:

An economy is said to be in short run equilibrium when when the quantity of the total output that is supplied by the producers in the economy is equal to the quantity of the aggregate output that is demanded by the consumers.

If short-run equilibrium occurs at a level of output above the natural rate, then in the transition to the long run prices will increase and output will decrease.

Kayden decided to attend college and gain a degree in accounting. He is now starting his degree. The yearly cost of tuition is $10,000 and he left his auto mechanic shop management job giving up a $32,000 a year to attend college. Kayden’s decision resulted in

Answers

Answer:

opportunity cost of $32,000

explicit cost of $10,000

Explanation:

Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.

the decision to leave his job is the opportunity cost of attending college. So, the opportunity cost is the income he would be forgoing to attend college.

the tuition fee he pays is the explicit cost. explicit cost is the actual cost incurred in carrying out a particular action

A Work Breakdown Structure (WBS) identifies deliverables, activities, and tasks. Which statement describes a task? Work performed to complete or manage the deliverables for a project Discrete work required to complete parts of a project Tangible and measurable outcome expected from a project A list that identifies the logical way to progress through work

Answers

Answer:

The correct option is;

Work performed to complete or manage the deliverables for a project

Explanation:

In other to manage project tasks, and make them easier to perform and approachable, it is a common methodology to split the entire tasks into smaller units that are easily managed

Work Breakdown Structure (WBS) is a project tool that is used to sort the project goal into smaller required activities, deliverables and tasks of the project

Project task is the work unit that brings about progress or advancement of the aims of the project that has a due date for completion.

Shivaram and Kiran are buying a home in a new subdivision. Due to all of the subdivisions in the area, a new elementary school is being built. Additionally, a new area park is planned. Shivaram and Kiran have been informed the taxes on their new home are substantially higher than their previous property. Why

Answers

Answer:

The Mello-Roos Community Facilities Act of 1982

Explanation:

The Community Facilities Act enacted in 1982 with the motive to generate the alternative method of financing required to improve every type of services with respect to schools, areas, etc

Here in the question, it is mentioned that there is plan of new area park and also the new home taxes are more than the last property they have. This is done due to this above act

hence, the same is to be considered

Things that are able to be seen and touched Group of answer choices

Answers

Answer: Tangible

Explanation:

Tangible things by definition are able to be seen and touched as opposed to intangible things which cannot be seen or touched but whose effects can be felt.

Because Tangible things can be seen, they can be easily measured and evaluated. In Business, most assets are tangible such as Land, Buildings, Equipment, Inventory etc.

ou work for a company that manufactures food products. A new "wonder food" contains only carbon, oxygen, and hydrogen. At this point, your research can say with certainty that the food ______.

Answers

Answer: B)does not include proteins or nucleic acids.

Explanation:

Carbon, oxygen, and hydrogen are very important elements in the production of various compounds that result in food for the human race and perhaps the most popular of those is carbohydrates.

They are also important in the formation of Proteins and nucleic acids. In these two however, the aforementioned elements need another element to form them. That element would be Nitrogen. As this new wonder food is lacking in nitrogen it can be confidently said that it does not include any proteins or nucleic acids.

Which of the following is true about competitive pricing? a. It is set by covering costs only. b. It is set by figuring out just how much a customer is willing to pay and pricing near that mark. c. It is at a medium level, somewhere in between extremes, using competitors’ prices as a starting point, and adjusting from there. d. It is set by covering costs and then adding some margin.

Answers

Answer: c. It is at a medium level, somewhere in between extremes, using competitors' prices as a starting point, and adjusting from there.

Explanation:

There is a lot of competition going on in most markets as this competition continues brands begin to look at what each other is doing to be able to beat themselves in the market. They understand that a good price and assured product will make them either loose or gain more clients and customers. This makes them focus on the price of each other and adjust or make out their own price from there.

Companies and firms often engage in competitive pricing. The true statement about competitive pricing is that It is at a medium level, somewhere in between extremes, using competitors’ prices as a starting point, and adjusting from there.

Competitive pricing is simply known as the act of selecting strategic price points to use in taking a degree of advantage of a product or service based market when compared to its competition.

It is a pricing method that is often used by businesses selling similar products

This type of pricing strategy is often used when a price for a product or service has attained a level of equilibrium.

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Suppose demand is given by Qxd = 50 − 4Px + 6Py + Ax, where Px = $4, Py = $2, and Ax = $50. A is the amount of the advertising. What is the quantity demanded of good x?

Answers

Answer: 96

Explanation:

Since the demand is given by:

Qxd = 50 − 4Px + 6Py + Ax,

where Px = $4,

Py = $2, and

Ax = $50.

where A is the amount of the advertising.

The quantity demanded of good x will be:

Qxd = 50 − 4Px + 6Py + Ax

= 50 - 4(4) + 6(2) + 50

= 50 - 16 + 12 + 50

= 1112 - 16

= 96

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