Final answer:
The monopoly should continue producing at the current output level where marginal revenue equals marginal cost, as it's the profit-maximizing condition. However, since the price is less than average total costs, the firm is currently making a loss on each unit sold.
Explanation:
In this scenario, the monopoly is currently producing output where the marginal revenue (MR) equals the marginal cost (MC), both at $40. To maximize profit, a monopoly should follow the rule of producing up to the quantity where MR equals MC. Since this condition is already met, no change in output level is required to maximize profits in the short run despite the current loss due to average total cost (ATC) being greater than the price.
However, because the firm's price ($80) is currently below its ATC ($100), the firm is making a loss on each unit sold. In the long run, if the firm cannot reduce costs or increase the price, it might need to consider shutting down if it cannot sustain these losses. But in the short term, the firm should continue producing since the price is covering the variable cost, and by producing, the firm can cover some portion of its fixed costs.
Danner corporation reported net sales of $650000, $720000, and $780000 in the years 2016, 2017, and 2018, respectively. if 2016 is the base year, what percentage do 2018 sales represent of the base?
A shift to a more expansionary monetary policy will generally _________ in the short run, but if the rapid monetary expansion persists, the long-run result will be ______.(fill in the blanks.)
Henry lives in a country where the government gives many incentives to produce military goods and few incentives to produce consumer goods. Henry knows a more efficient way to finish his task at work and feels like sharing it with his boss. However, he has no incentive to share it. Which type of economy does Henry most likely live in?
Answer:
The correct answer is: Command Economy.
Explanation:
A Command Economy is one where the government controls the economy, acting as a central planner, dictating production quotas and distribution levels, and setting prices. Such economies exist in communist or socialist states as China, North Korea, or the former Soviet Union. These economies have low to none incentives for individual planners and government workers.
Suppose the economy starts off producing natural real gdp. next, aggregate demand rises, ceteris paribus. as a result, the price level rises in the short run. in the long run, when the economy has moved back to producing natural real gdp, the price level will be
In related linked diversified firms, ____ are a complex set of resources that link the different businesses through managerial and technological knowledge, experience, and expertise.
a. corporate core competencies
b. strategies
c. support activities
d. intangible assets
The answer to this question is Corporate core competencies.
Corporate core competencies are the set of skills that the business / company have that shows how competitive the company is and it shows the organization’s strategic strengths. The corporate core competency should be unique and is difficult to be copied by the competitors.(tco
b.if today you put $10,000 into an account paying 10% annually, how much will there be in the account after 5 years? show your work.
Changes in the lives of women in the last 50 years reflect __________ employment and educational attainment.
The answer to this question is that it reflects an increase in woman’s employment and educational attainment.
Woman now are given equal rights with regards to employment and educational attainment. Before women are just being neglected and was just allowed to take care of the kids and be a normal housewife. Today, woman has a vital role in the society and given equal opportunities.