Make a prediction of where the program will be in five years. Remember, this is a course in business not political science. Also, do not swallow China’s predictions of success without a careful assessment. Focus on the program’s likely revenue outcome and its ability to spur new business.
In: Economics
13. Now assume that the market for JAMS is a Perfectly Competitive market and that demand in this market is given by Pd=300−1/2Qd. Further assume that Supply in this market is given by Ps=60+Qs
Now assume that Trendsetting Tavares owns one of the firms in the JAMS market and that his Marginal Cost and Total cost are as given below.
MC=60+4q Total Cost=60q+2q^2
What is the marginal revenue on the 10th Pair of JAMS that Tavares produces?
In: Economics
Suppose you are in charge of sales at a pharmaceutical company, and your firm has a new drug that causes bald men to grow hair. Assume that the company wants to earn as much revenue as possible from this drug. If the elasticity of demand for your company’s product at the current price is 1.4, would you advise the company to raise the price, lower the price, or to keep the price the same? What if the elasticity were 0.6? What if it were 1? Explain your answer.
In: Economics
Suppose that a market is described by the following supply and demand equations:
QS = 2P
QD = 400 - 2P
Suppose that a tax of $40 is placed on buyers, so the new demand equation is:
QD = 400 – 2(P + 40)
a) Solve for the new equilibrium. What happens to the price received by sellers, the price paid by buyers, and the quantity sold? Calculate the new consumer surplus, producer surplus and total surplus.
b) Calculate the Tax revenue and the deadweight loss generated by the tax.
In: Economics
A monopolist faces a market demand: P = 200 – Q. The monopolist has cost function as C = 1000 + Q2, and marginal cost MC = 2Q. (
1) Solve for Marginal Revenue (MR) function.
(2) Find the profit-maximizing quantity? Profit?
(3) Suppose the monopolist decides to practice 3rd degree price discrimination. Without solving for the 3rd degree price discrimination, can you compare the new profit earned by the monopolist with the old profit?
In: Economics
1.
A monopolist has average cost AC = .2Q - 4 + 100/Q and marginal cost MC = .4Q - 4. Market demand is Q = 44 - P, implying that the firm’s marginal revenue is MR = 44 - 2Q. Its profit-maximizing output is
a. 92
b. 46
c. 40
d. 20
2.
Consider the same monopoly situation as in the previous question. The firm’s profit will be
a. 760
b. 660
c. 830
d. 380
In: Economics
Record each of the following Fred Co. events in
T-accounts:
a. Received $11,500 cash by issuing common
stock.
CASH , COMMON STOCK
Debit Credit , Debit Credit
_____ ______ , ______ ______
b. Purchased supplies for $620 cash.
CASH , SUPPLIES
Debit Credit , Debit Credit
_____ ______ , ______ ______
c. Purchased land for $9,700 cash.
CASH , LAND
Debit Credit , Debit Credit
_____ _____ , ______ _____
d. Performed services for $4,400 cash.
CASH , SERVICE REVENUE
Debit Credit , Debit Credit
____ ______ , ______ ______
In: Accounting
Your company has 100 units in inventory, purchased at $16 per unit, and this inventory could be replaced at $14 per unit.
Multiple Choice
The company should debit revenue for $200 and credit inventory for $200.
The company should debit loss in inventory value for $200 and credit inventory for $200.
The company should debit inventory for $200 and credit cash for $200.
The company should debit inventory for $200 and credit cost of goods sold for $200.
In: Accounting
In: Accounting
When we formed the construction contract, do we need the margin
percentage for the percentage-of-completion method? I am trying to
calculate the revenue. I have information about the estimated cost,
cost incurred per year, the finalized cost, project years, and
margin. However, I am not sure it is necessary. It said that the
worker wants to add a margin of % on its cost estimate.
Can anyone help me to use an example to explain to me?
In: Accounting