Problem on price mark up
A company consists $27 per unit in variable costs and $1,000,000 annually in fixed costs. Demand is predicted to be 100,000 units annually. Determine the price if a markup of 40% on total cost is used to determine the price?
Expert
Total variable cost 1, 00,000 * 27 = $27, 00,000+ Fixed Cost = $10, 00,000
Thus total cost is $37, 00,000 i.e. $37 per unit.
Thus price is 37 + 40% i.e. $51.80.
When output is expanded, then a firm's total revenues: (1) are maximized where marginal revenue is zero. (2) decline whenever average revenue falls. (3) rise more quickly the faster marginal returns diminish. (4) are maximized where profit is maximize
One of the main disadvantages of operating a corporation in relative to operating a sole partnership or proprietorship is that corporations tend to: (i) Offer just limited legal liability to their stockholders. (ii) Utilize specialized management pers
A firm under monopoly a price maker by the reasons shown below:A) The monopolist is a single seller of the product in market. Therefore it has full control over supply.B) There are no close replacements of the monopoly product,
When a monopolist which does not price discriminate produces output where is demand is unitarily elastic, in that case the firm will: (i) never be capable to maximize profit. (ii) maximize profit only when all costs are fixed. (iii) maximize profit wh
illustrate a firm under monopolistic competition?
Poverty within the United States can be explained most properly by: (w) differences in effort and sacrifice. (x) voluntary choices of low income persons to consume more leisure at the expense of more income. (y) monopsonistic exploitation of labor by
What happens to equilibrium price if increase in demand is equivalent to increase in supply? Answer: In case of equivalent increase in demand and supply the equilib
For a purely competitive market at any equilibrium point on the short-run supply curve: (w) all firms have identical marginal costs. (x) economic profit is positive. (y) accounting profit is normal. (z) marginal revenue = average cost. Q : Problem on Exploitation Exploitation Exploitation takes place when firms pay resource owners less than their: (i) Maximum resource cost. (ii) Values of marginal product. (iii) Rates of the economic profit. (iv) Marginal revenue products. Find out the
Exploitation takes place when firms pay resource owners less than their: (i) Maximum resource cost. (ii) Values of marginal product. (iii) Rates of the economic profit. (iv) Marginal revenue products. Find out the
Maximizing profit needs every firm to manufacture the output level where marginal is: (i) revenue is maximized. (ii) cost equals the lowest possible average total cost. (iii) revenue equals marginal cost. (iv) revenue exceeds ma
18,76,764
1932430 Asked
3,689
Active Tutors
1425459
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!