The shut-down price is:
option A:the price at which economic profit is zero.
option B:the minimum of the AVC curve.
option C: the intersection of the MC and ATC curves.
option D: the minimum of the AFC curve.
In: Economics
Why do firms prefer being price setters over being price takers, even in the absence of monopoly? explain with an example.
In: Economics
Because of scarcity, we have a price system. What functions does this price system perform? What happens when the price system for certain goods or services does not produce a socially acceptable outcome (example, low-cost housing): are there any alternatives
In: Economics
Qd : 50-p
Qs :-10+p
Calculate the price elasticity of demand at the equilibrium
price? Also, calculate the price elasticity of
supply at the equilibrium price? Explain your result for both.
In: Economics
Adams Manufacturing Company established the following standard price and cost data:
| Sales price | $ | 8.50 | per unit |
| Variable manufacturing cost | $ | 3.70 | per unit |
| Fixed manufacturing cost | $ | 2,800 | total |
| Fixed selling and administrative cost | $ | 600 | total |
Adams planned to produce and sell 2,200 units. Actual production and sales amounted to 2,400 units.
Assume that the actual sales price is $8.15 per unit and that the actual variable cost is $3.95 per unit. The actual fixed manufacturing cost is $2,500, and the actual selling and administrative costs are $620.
Required
a.&b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
In: Accounting
QUESTION 8
For a monopolist:
|
price equals average total cost. |
||
|
price is above marginal revenue. |
||
|
marginal revenue equals zero. |
||
|
marginal cost equals zero. |
QUESTION 9
An example of price discrimination is the price charged for:
|
an economics textbook sold at a campus bookstore. |
||
|
gasoline. |
||
|
theater tickets that offer lower prices for seniors. |
||
|
a postage stamp. |
QUESTION 10
There is only one gas station within hundreds of miles. The owner finds that if she charges $3 a gallon, she sells 199 gallons a day, and if she charges $2.99 a gallon, she sells 200 gallons a day. The marginal revenue of the 200th gallon of gas is:
|
$0.01 |
||
|
$1 |
||
|
$2.99. |
||
|
$600. |
QUESTION 11
At the long-run equilibrium level of output, the monopolist's marginal cost will:
|
exceed price. |
||
|
be equal to price. |
||
|
be less than price. |
||
|
be less than marginal revenue. |
QUESTION 12
A monopolist will earn economic profits as long as his price exceeds:
|
MR. |
||
|
AFC. |
||
|
AVC. |
||
|
ATC |
QUESTION 13
A monopolist will maximize its profit by:
|
Setting its price as high as possible. |
||
|
Producing a quantity where MR = MC. |
||
|
Producing a quantity where P = MC. |
QUESTION 14
Both a perfectly competitive firm and a monopolist:
|
Always earn an economic profit. |
||
|
maximize profit by setting MR = MC. |
||
|
maximize profit by setting P = MC. |
||
|
are price takers. |
QUESTION 15
Without government regulation, the market outcome of monopoly:
|
Is inefficient and results in deadweight loss. |
||
|
Can be either efficent or inefficient. |
||
|
All consumers who value the good higher than its marginal cost will be able to get the product. |
||
|
None of the above. |
In: Economics
From time to time governments impose price controls. Some economists have argued that price controls are an inefficient policy. Why then do governments implement price controls? Discuss two types of price controls that you are familiar with? Under what circumstances would these types of policy be considered an efficient/inefficient policy?
In: Economics
From time to time governments impose price controls. Some economists have argued that price controls are an inefficient policy. Why then do governments implement price controls? Discuss two types of price controls that you are familiar with? Under what circumstances would these types of policy be considered an efficient/inefficient policy?[20 marks]
In: Economics
INSTRUCTIONS: Select a price from the scenarios below and compute the contribution for each service based on your selected price. Variable cost per unit comes from your Variable_Fixed tab completed in Milestone
1. SCENARIO (choose one from each category):
Dog Day Care
1. With pricing at $18 per dog per day, you can expect to have 22 dogs per day.
2. With pricing at $20 per dog per day, you can expect to have 15 dogs per day.
3. With pricing at $25 per dog per day, you can expect to have 10 dogs per day.
Overnight Boarding
1. With pricing at $25 per dog per day, you can expect to have 12 dogs per day.
2. With pricing at $28 per dog per day, you can expect to have 10 dogs per day.
3. With pricing at $30 per dog per day, you can expect to have 7 dogs per day.
Basic Groom
1. With pricing at $25 per dog per day, you can expect to have 5 dogs per day
. 2. With pricing at $30 per dog per day, you can expect to have 4 dogs per day.
3. With pricing at $35 per dog per day, you can expect to have 3 dogs per day.
| DAY CARE | BOARDING | GROOMING | |||||
| Sales Price | $ 18.00 | $ 25.00 | $ 25.00 | ||||
| Variable Cost per Unit | 4.65 | 7.36 | 9.97 | ||||
| Contribution Margin | $ 13.35 | $ 17.64 | $ 15.03 | ||||
In: Accounting
"Price Discrimination"
Does your company use price discrimination? Explain how the practice works of direct and indirect price discrimination works and estimate the effect of price discrimination on profits compared to charging a flat price.
If your company doesn’t currently use price discrimination, are there opportunities to use this pricing technique?
How would you design the scheme?
In: Economics