Cutting Edge Pharmaceuticals Pty Ltd (a monopoly firm) has the following demand (average revenue) function: AR = 100 – Q
The marginal cost of production is given as constant and equal to $10.
a) What is the equation for the MR function? In showing this equation for the MR function explain the relationship between average revenue and marginal revenue. Determine the profit maximizing level of output of the firm (1 mark)
b) What is the equilibrium monopoly price set by the firm and what will be the monopoly profit earned? (1 mark)
c) Illustrate the market demand and marginal cost, average cost of this firm as well as, profit maximizing price quantity and profit level on a diagram (1 mark)
In: Economics
Optimal Chapter-Flight Fare
If exactly 180 people sign up for a charter flight, Leisure World Travel Agency charges $316/person. However, if more than 180 people sign up for the flight (assume this is the case), then each fare is reduced by $1 for each additional person. Determine how many passengers will result in a maximum revenue for the travel agency. Hint: Let x denote the number of passengers above 180. Show that the revenue function R is given by
R(x) = (180 + x)(316 − x).
passengers
What is the maximum revenue?
$
What would be the fare per passenger in this case?
dollars per passenger
In: Math
Table 14-9
Suppose that a firm in a competitive market faces the following
revenues and costs:
Quantity | Total Revenue | Total Cost |
0 | $0 | $10 |
1 | $9 | $14 |
2 | $18 | $19 |
3 | $27 | $25 |
4 | $36 | $32 |
5 | $45 | $40 |
6 | $54 | $49 |
7 | $63 | $59 |
8 | $72 | $70 |
9 | $81 | $82 |
Refer to Table 14-9. If the firm produces 4 units
of output,
| a)marginal revenue is less than marginal cost. | |
| b)marginal cost is $4. | |
| c)the firm is maximizing profit. | |
| d)total revenue is greater than variable cost. |
In: Economics
1. Demand: P=120-Q Total Cost: TC=Q2
Marginal Revenue: MR=120-2Q Marginal Cost: MC=2Q
What is the amount of profit for this monopolist?
2. Demand: P=120-Q Total Cost: TC=Q2
Marginal Revenue: MR=120-2Q Marginal Cost: MC=2Q
For this monopolist, the profit-maximizing price is ________ and the profit-maximizing quantity is _________.
3. Demand: P=120-Q Total Cost: TC=Q2
Marginal Revenue: MR=120-2Q Marginal Cost: MC=2Q
Compared to perfect competition where P=MC, what is the amount of deadweight loss caused by this monopolist _________.
In: Economics
Macroeconomic Conditions and Company Performance: RE: Walmart, Neighborhood Market
a) Describe the trends of Net Profit And Total Revenue over the past three years. (Generally Macro efects of increased net profit and revenue)
b) Analyze the relationship between Net Profit And Total Revenue (performance variables) and Unemployment, Inflation, and Interest Rates (macroeconomic variables) for the past three years. Include Any relating graphs or suggested graphing methods**
c) Assess how the current monetary policy and fiscal policy in the United States may impact Walmanr't Neighborhood Markets financial performance in the short term (six months to one year). Justify your response.
In: Economics
Carlo and Anita make mailboxes and toys in their craft shop near Lincoln. Each mailbox requires 1 hour of work from Carlo and 2 hours from Anita. Each toy requires
1 hour of work from Carlo and 1 hour from Anita. Carlo cannot work more than 5 hours per week and Anita cannot work more than 8 hours per week. If each mailbox sells for $8 and each toy sells for $12?, then how many of each should they make to maximize their? revenue? What is their maximum? revenue?
Carlo and Anita should make _mailboxes and _toys. Their maximum revenue is _?$.
In: Economics
|
Ryan Company Trial Balance December 31, 2017 |
||
| Debit | Credit | |
| Cash | 21,800 | |
| Accounts Receivable | 18,800 | |
| Prepaid Insurance | 1,000 | |
| Equipment | 5,000 | |
| Accumulated Depreciation-Equipment | 9,600 | |
| Accounts Payable | 11,600 | |
| Salaries and Wages Payable | 2,200 | |
| Unearned Rent Revenue | 1,600 | |
| Common Stock | 20,000 | |
| Retained Earnings | 11,000 | |
| Dividends | 5,600 | |
| Service Revenue | 69,200 | |
| Rent Revenue | 26,200 | |
| Salaries and Wages Expense | 36,200 | |
| Supplies Expense | 4,000 | |
| Rent Expense | 21,600 | |
| Insurance Expense | 3,000 | |
| Depreciation Expense | 2,400 | |
| 151,400 | 151,400 |
Prepare the income and statement of changes in stockholders' equity statements for the year and the classified balance sheet at December 31.
In: Accounting
| Price (RM) | Quantity demanded (tonnes) | Quantity supplied (tonnes) |
| 1 | 90 | 30 |
| 2 | 75 | 45 |
| 3 | 60 | 60 |
| 4 | 45 | 75 |
| 5 | 30 | 90 |
| 6 | 15 | 105 |
(a) What is the equilibrium price and quantity? [4 marks] (b) Calculate the revenue received by the seller at equilibrium. [4 marks] (c) Due to medical journals reporting that wheat is good for health, the quantity demanded is increased by 30 tonnes. (i) Calculate the new quantity demanded. [2 mark] (ii) What is the new equilibrium price and quantity? [4 marks] (d) Calculate the new revenue. Did the revenue increase or decrease? [6 marks]
In: Economics
Which of the statements below describes how TIF accounts for sales of gift cards on its balance sheet and income statement? You may select more than one.
Select one or more:
a. Revenue is recognized when the gift card is sold
b. Revenue is recognized when merchandise is purchased using the gift card and delivered to the customer
c. The gift card liability is relieved when merchandise is purchased using the gift card and delivered to the customer
d. A gift card liability is established when the gift card is sold
e. All of these answers
f. Gift card liabilities are included in the line item “Merchandise credits and deferred revenue” on the balance sheet
In: Accounting
Carlo and Anita make mailboxes and toys in their craft shop near Lincoln. Each mailbox requires 1 hour of work from Carlo and 2 hours from Anita. Each toy requires 1 hour of work from Carlo and 3 hours from Anita. Carlo cannot work more than 55 hours per week and Anita cannot work more than 12 hours per week. If each mailbox sells for $ 15 and each toy sells for $ 24, then how many of each should they make to maximize their revenue? What is their maximum revenue?
Carlo and Anita should make __ mailboxes and __ toys. Their maximum revenue is $__.
In: Advanced Math