The monopoly is currently profit maximizing and has a total profit of $250. The profit maximization formula depends on profit = total revenue - total cost.
Therefore, firms maximize profits when MR = MC. This is the first order and the second order depends on the first. This concept differs from wealth maximization in terms of the length of time it takes to make a profit and the goals of the business. A monopoly calculates profit or loss by determining the cost of production using the average cost (AC) curve and subtracting that figure from the total revenue (TR). Recall from our earlier lecture that companies use average cost (AC) to determine profitability. There are three main ways to increase the benefits of a monopoly to society.
Remove or lower barriers to entry imposed by antitrust laws to allow other companies to enter and compete in the market. Regulates the price that a monopoly can charge. Exclusive operation as a public company.
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what are the main assets of the federal reserve banks? multiple choice question. cash and checks securities and loans checkable deposits stocks and bonds
Option (b) is the best choice. Securities and loans make up the bulk of the Federal Reserve Banks' assets.
What are the Federal Reserve Bank's key assets?Securities and loans to commercial banks make up the Federal Reserve Banks' two primary assets. The Federal Reserve Bank has acquired the assets, which are government bonds, in order to raise the amount of money available to the economy. Commercial bank loans also assist banks in building up their reserves.
What is the largest holding of the Federal Reserve?About 95% of the Fed's overall balance sheet is made up of securities that are held outright. Treasury securities, such as shorter-term Treasury bills, notes, and bonds, make up over two thirds of the total. Another approximately one-third is made up of mortgage-backed securities.
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assume that the new zealand inflation rate is higher than the u.s. inflation rate. this will cause u.s. consumers to
The New Zealand inflation rate being higher that the US inflation rate will cause US consumers to increase their imports from New Zealand and New Zealand consumers to reduce their imports from the United States.
What is the definition of inflation?Inflation is defined to be the rate of increase in prices over a given period of time. Typically, inflation is a broad measure, such as the increase in the cost of living in a country or the overall increase in prices. However, it can also be more narrowly calculated—for certain goods, such as electronics, or for services, such as a wedding organizer, for instance. Inflation, whatever the context, represents how much more expensive the relevant set of goods and/or services has become over a certain period.
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a call option with 6 months to expiration currently sells for $2.05. a put option with the same expiration sells for $.60. the options are european style. the risk-free rate is 3.0% and the strike price of both options is $50. what is the current stock price? multiple choice $47.89 $52.08 $49.19 $51.29 $50.72
A call option with 6 months to expiration currently sells for $2.05. A put option with the same expiration sells for $0.60. The options are European style. The risk-free rate is 3.0 percent and the strike price of both options is $50.
Stock price = $2.05 - $0.60 + $50 / (1 + 0.03)^(6 / 12) = $50.72
The risk-free rate of return are mostly shortened to the risk-free rate, is the rate of return of a hypothetical investment with scheduled payments over a fixed period of time that is assumed to meet all payment obligations.
How do you calculate risk-free rate?
Risk Free Rate Formula: Real vs. Nominal
Real Rf Rate = (1 + Nominal Rf Rate) / (1 + Inflation Rate)Nominal Rf Rate = (1 + Real Rf Rate) * (1 + Inflation Rate) – 1.Equity Risk Premium (ERP) = Expected Market Return – rf Rate.What is an example of a risk-free rate?
United States Treasuries are a good example of a risk-free investment since the government cannot default on its debt. As such, the interest rate on a three month United States Treasury bill is often used as a stand in for the short term risk-free rate, since it has almost no risk of default.
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The net profit margin ratio can mathematically be broken down as "tax impact x capital structure impact x. ".
Tax impact x Capital structure impact x EBIT / Sales are the components that make up the net profit margin ratio.
What is EBIT / Sales?EBIT, or earnings before interest and taxes, is a measure of how profitable a business is. Revenue less expenses, without taxes and interest, is EBIT. Operating earnings, operating profit, and profit before interest and taxes are other names for EBIT.The net income is obtained when expenses are subtracted from revenues, and the net income could be calculated by dividing the net income from sales.Additionally, the capital structure combines debt, preferred shares, and equity. It is divided primarily into three categories: net profit margin ratio, capital structure impact, and tax impact.Operating income, or EBIT, is another name for the amount that remains after all operating costs (both production and non-production costs) are subtracted from sales.To learn more about EBIT / Sales refer to:
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what rate of return results in a present value of $432 for $250 received one year from now and another $250 received two years from now?
In financial analysis, the internal rate of return (IRR) is a statistic used to calculate the profitability of possible investments.
What Is Internal Rate of Return (IRR)?IRR is a discount rate that, in a discounted cash flow analysis, reduces all cash flows' net present values (NPV) to zero.The same formula is used for NPV calculations and IRR calculations. Remember that the project's actual dollar value is not represented by the IRR. The annual return is what brings the NPV to a negative value.Generally speaking, an investment is more Favourable to make the greater the internal rate of return. IRR can be used to rank a variety of potential investments or projects on a relatively even basis because it is consistent for investments of all types. Generally speaking, the investment with the highest IRR would be regarded as the best when comparing options with other similar characteristics.To Learn more About internal rate of return Refer to:
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Which type of market structure is characterized by the smallest number of firms?.
An oligopoly is a market with a small number of businesses that are aware of their interdependence in terms of price and output practices. Each company has some market power because there aren't many businesses.
What is an oligopoly market?A small number of providers control oligopoly marketplaces, which are dominated by them. All nations and a wide range of industries contain them. Other oligopoly markets are substantially less competitive, though they may at first appear to be so in some cases.In a market arrangement known as an oligopoly, a few major sellers or manufacturers control the majority of the market or industry. Oligopolies frequently arise as a result of corporate collaboration and the drive to maximize profits.An oligopoly is a market with a small number of businesses that are aware of their interdependence in terms of price and output practices. Each company has some market power because there aren't many businesses.To learn more about Oligopoly refer to:
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benjamin retired at age 62 and began to collect social security benefits. after a year of playing 3 rounds of golf a day, ben is a bit bored and decides to go back to work part time. in 2021 (when benjamin is age 63) he earns $28,960 at his part time job. his social security benefit before any adjustments for 2021 is $18,000. what will his actual social security benefit be for 2021?
13,000 will be his actual social security benefits be for 2021. Benjamin has earned $25,720 at his part time job.
The total age retirement is 66 for Benjamin. So we can understand that he is not at the full age retirement and continued his working in 2015. Benefits from Social Security are payments paid to eligible retired adults, disabled individuals, and their spouses, children, and survivors. An extensive federal benefits programme, Social Security—officially known in the United States as the Old-Age, Survivors, and Disability Insurance (OASDI) program—is created to partially replace income for retired adults and their spouses, people who have lost a spouse or a qualifying ex-spouse, and people with disabilities. It also provides assistance to the beneficiaries' children under certain circumstances.The maximum benefit is based on your retirement age. For illustration, if you reach full retirement age in 2022 and decide to retire, your maximum benefit will be $3,345. However, your maximum benefit would be $2,364 if you retired at age 62 in 2022. The maximum benefit you could receive in 2022 if you retired at age 70 would be $4,194.
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imagine you own your own business. how would you evaluate opportunity costs and comparative advantage when making business decisions?
When evaluating opportunity costs, it's important to keep these three things in mind to make well-informed business decisions.
The value of the opportunity should be evaluated based on both the benefits and costs involved. Investors calculate the opportunity cost by comparing the returns of the two options. This can be done by estimating future earnings during the decision-making process. Alternatively, the opportunity cost can be calculated retroactively by comparing returns since the decision was made. The concept of opportunity cost is used in decision making to help individuals and organizations make better decisions, primarily by considering alternatives. Opportunity cost includes the costs and benefits of each decision, which can be difficult to estimate. Opportunity cost is positive.
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leads and lags are evaluated and, if necessary, modified as part of which process? a. scope development b. duration estimation c. analogous cost estimating d. schedule development
Leads and lags are evaluated and, if necessary, modified as part of which process schedule development.
Lead and lag are each used withinside the improvement of the mission schedule. Lead is an acceleration of the successor interest and may be used most effective on finish-to-begin interest relationships. Lag is a put off withinside the successor interest and may be discovered on all interest dating types.The Lead Time is an improve in wearing out the activities. The Lead Time corresponds to the time “saved”. The Lag Time is a put off in wearing out activities.
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Given a stock index with a value of $1,125, an anticipated dividend of $33, and a risk-free rate of 4%, what should be the value of one futures contract on the index?.
The fair value of a futures contract is the price of the contract that is neutral between a stock buyer buying on a physical exchange and actually buying the stock and agreeing to buy the futures contract.
An index futures contract is a legally binding contract between a buyer and a seller that tracks the price of the underlying stock of the index. It allows traders to buy and sell contracts on financial indices and settle at a later date. A futures lot size is the minimum ticket size of a stock that can be traded on a futures contract. When trading futures and options, these instruments may only be bought or sold in at least 1 lot or multiples of the lot size. For example, Nifty's lot size is 75 units, so Nifty can only trade in multiples of 75.
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on october 1, pinnacle company signs a note for $360,000 to provide the funds needed to build a new facility. the note is due in 10 years, includes an annual interest rate at 7%, and requires semiannual interest payments each april and october. the journal entry to record the issuance of the promissory note should debit:
Cash and credit Notes Payable for $360,000.The amount that the lender charges the borrower over and beyond the principal amount is referred to as the interest rate.
What is interest rate?
A person who deposits money in a bank or other financial institution also earns additional income in terms of the recipient, known as interest, taking into account the time value of money.
Interest rates on loans and deposits may vary depending on the goal and recipient of the funds. The amount of interest on a loan that has already accrued but has not yet been paid by the borrower or received by the lender is recorded using an accrued interest journal entry. The interest earned on unpaid bills during a specific financial term is known as accrued interest.
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The question was incomplete. Check below the complete question.
On October 1, Pinnacle Co. signs a note for $360,000 to provide the funds needed to build a new facility. The note is due in 10 years, includes an annual interest rate at 7%, and requires semiannual interest payments each April and October. The journal entry to record the issuance of the promissory note should debit:
A. Notes Payable for $360,000, debit Interest Expense for $25,200, credit Cash for $360,000, and credit Interest Payable for $25,200.
B. Cash and credit Notes Payable for $360,000.
C. Cash for $360,000, debit Interest Expense for $25,200, credit Notes Payable for $360,000, and credit Interest Payable $25,200.
D. Accrued Interest and credit Cash for $25,200.
seasonal indices of sales for the black lab ski resort are for 1.20 for january and .80 for december. if december sales for 1998 were $5,000, a reasonable estimate of sales for january 1999 is
The seasonal sales indexes for the Black Lab ski resort are 1.20 for January and .80 for December. If December sales in 1998 were $5,000, a reasonable estimate of sales in January 1999 is $7,500.
(1.20 * 5000) % .80 = 7,500.
Sales are actions related to selling or the number of products sold in a specific time period. A sale is also defined as the provision of a service for a fee. The seller, or the provider of the products or services, completes a sale in response to an acquisition, appropriation, requisition, or direct interaction with the customer at the point of sale. The item's title (property or ownership) is transferred, and a price is agreed upon. The seller, not the purchaser, normally executes the sale, and it may be done prior to the obligation of payment.
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During the economic downturn, alejandro’s neighbor, a successful accountant, lost his job and had to sell his house. Alejandro decided that this neighbor "must have really messed up at his work. " this is an example of.
During the economic downturn, alejandro’s neighbor, a successful accountant, lost his job and had to sell his house. Alejandro decided that this neighbor "must have really messed up at his work. " this is an example of just world belief.
What is meant by just world belief?This refers to the idea that, generally speaking, everyone gets what they deserve, is treated fairly, and will be made up for any injustices they have faced.
The idea that if anything unpleasant happens to someone, they must have done something wrong to deserve it is a simple illustration of the just-world theory. For instance, if someone gets a rare illness, this implies that they must have committed a sin for which they are now paying the price.
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a market in which the economies of scale are so great that the largest firm has the lowest costs and is able to drive out competitors is called a(n)
A market in which the economies of scale are so great that the largest firm has the lowest costs and is able to drive out competitors is termed as a natural monopoly.
If one business can serve a market more affordably than any combination of two or more enterprises, that market has a natural monopoly. A natural monopoly is a type of monopoly that typically arises as a result of high start-up costs or significant economies of scale associated with conducting business in a particular industry, which can result in a significant restrictions to entry for potential competitors.
It's possible for a business with a natural monopoly to be the sole supplier of a good or service in a given sector or region. In industries where the operation depends on specialized technology, raw materials, or other elements, natural monopolies may develop. One sort of monopoly that develops because of certain conditions is a natural monopoly.
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sparky sees quality control in terms of detecting potential problems to prevent their occurrence and thus save minimotors money. the quality control process that is most closely linked to sparky's goal is know as:
The quality control process most closely linked to sparky's goal is known as Six Sigma.
What is the importance of the quality control process?In order to protect the brand of the business, avoid unreliable products, and foster consumer trust, quality control is crucial. Quality helps a company reduce waste, expenses, and hazards.
The Six Sigma methodology gives businesses the tools they need to enhance the efficiency of their company operations. Doing the right things, it is utilized to boost a process's efficiency and effectiveness.
In the given case, it is explained that Quality control, in Sparky's opinion, is the process of identifying possible issues before they arise. Here the use of six sigma is required in order to meet the goal.
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what is the likely result for a country of rapidly increasing population and limited economic development?
More widespread poverty is the likely result for a country of rapidly increasing population and limited economic development.
Economic and social development is the process through which the economic well-being and quality of life of a country, region, local community, or an individual are enhanced in accordance with specific aims and objectives, according to the economics study of the public sector.
An improvement in a nation's wealth and standard of living is referred to as economic development. Improvements in productivity, literacy rates, and public education, for instance, are all effects of economic development in a nation. Land, labor, capital, and entrepreneurship are the four main drivers of economic growth.
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if a firm in a perfectly competitive market is producing at a level of output where marginal costs exceed marginal revenue,when a firm faces a perfectly competitive market and buys its inputs from perfectly competitive markets, the only choice the firm has to affect its profits is to:the firm's profits:
When a company faces a perfectly competitive market and sources its inputs from perfectly competitive markets, if it is producing at a level of output where marginal costs are greater than marginal revenues.
At the output level where MR=MC, a perfectly competitive firm will make the decision that maximizes profits. Through the interaction of market supply and demand, the equilibrium price of raspberries is established at $4.00. The marginal returns start.
At the time where marginal revenue equals marginal cost (MR=MC), a fully competitive firm will maximize profit or minimize loss.
As a result, the firm's profits are maximized when it selects an output level where its marginal revenue and marginal cost are identical.
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which group of attorneys for indigent clients is part of the system paid for and supported by tax dolalrs
Every person who is represented by a court-appointed attorney in California, including the Public Defender's Office, may be required to pay the County of Napa a registration fee of up to $25.
If you cannot afford to pay the registration fee, you will not be required to pay anything.
In New Jersey, how do you get a public defender?
A public defender may be available to anyone in New Jersey accused of an indictable offense (a felony) or disorderly conduct.Indigent individuals may also have access to a public defender in the following instances:Cases of juvenile delinquency.Drug cases in court.
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a tax on consumers of a good would shift the curve down and cause the price paid by consumers to .
A tax imposed on consumers of a good would cause the demand curve to shift downward and raise consumer prices.
The relationship between the price of an item or service and the quantity demanded over a specific time period is represented graphically by the demand curve. The price will typically be shown on the left vertical axis and the amount needed on the horizontal axis in a depiction.
The law of demand states that when the price of a given good rises, the quantity required falls, all other things being equal. This is expressed by the demand curve moving downward from the left to the right. It should be noted that this formula suggests that quantity is the dependent variable and price is the independent variable.
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which of the following documents will a project manager use to evaluate the impact of a project? scope document risk register final budget final schedule
Project manager will use Scope document to evaluate the impact of a project.
What is Scope document?
A scope document is just a formal piece of writing that outlines the project's and the product's scope. You must decide on the project's scope before you and your team (as well as any other stakeholders) get started. You can create a basic scope document by listing those requirements.
A scope document enables you and your team to establish expectations up front, promotes accountability throughout the project life cycle, and aids in keeping the project's expenses, needs, and timeframe under control. Specificity is important while drafting a project scope document.
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FILL IN THE BLANK focuses on using information about the customer to create marketing strategies that develop and sustain desirable customer relationships.
Customer Relationship Management (CRM) focuses on using information about the customer to create marketing strategies that develop and sustain desirable customer relationships.
What does Customer Relationship Management (CRM) entail?
A technology for managing all of your company's interactions with customers and potential customers is customer relationship management (CRM). The objective is clear: Enhance business connections. A CRM system aids businesses in enhancing profitability, streamlining procedures, and maintaining customer contact.
With an example, what is Customer Relationship Management?
Client relationship the executives (CRM) is the blend of practices, techniques and advancements that organizations use to oversee and examine client cooperations and information all through the client lifecycle. The objective is to boost sales, assist in customer retention, and enhance relationships with customers.
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In 2015 (current year) the total GDP was $750, and in 2014 (base year) the total GDP was $625. What is the CPI in 2015?
a 1.20
b 120
c 120%
d 83.3
e 8.33%
more than 80 percent of mcdonald's restaurants worldwide are owned and operated by franchisees. this illustrates a(n) marketing system.
Around the world, franchisees own and run more than 80% of McDonald's restaurants. This serves as an example of a contractual vertical marketing system.
An agreement between the tiers of marketing associated with a certain product is introduced by the contractual vertical marketing system. Businesses that operate through franchising, for instance, employ this strategy to profit from the general marketing of the brand name in a way that benefits each particular location. Chain stores have this benefit, among others.
In order for the benefits to accrue cumulatively for each firm engaged, this contractual distribution system strives to synchronize advertising at each level - manufacturing, shipping, wholesale, and distribution.
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Compared to a single-price monopoly, a firm that operates in a perfectly competitive market is similar to a monopoly firm that is able to perfectly price discriminate in which of the following ways?
Deadwieght loss is eliminated
Price charged would be the same
Quantitiy sold would be the same
Total surplus is maximized
They are able to perfectly price discriminate in the following ways like
Deadweight loss is eliminatedQuantity sold would be the sameTotal surplus is maximizedHence, Option 1 , Option 2 and Option 3 is correct.
What is single price monopoly ?
A single-price monopoly can be determined as a firm that needs to sell each unit of output for the same price to all its customers.It never produces an output at which demand is inelastic.It helps to determine price where the marginal revenue equals the marginal cost.Examples include Natural gas, electricity companies, and other utility companies.By analyzing the case Option 1, 3 and 4 is correct.
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markov manufacturing recently spent $15 million to purchase some equipment used in the manufacture of disk drives. the firm expects that this equipment will have a useful life of five years, and it will be worthless afterwards. assume the marginal corporate tax rate is 35%. if the company plans to use straight-line depreciation, what is the annual depreciation tax shield?
The annual depreciation tax shield is $1050000 of the equipment
The value of an asset is equally decreased over each period with the straight-line depreciation method until it reaches its salvage value. The most popular and simple depreciation method for dividing up the cost of a capital asset is straight line depreciation. It is determined by merely dividing the asset's cost, less its salvage value, by its useful life.
Computing the annual depreciation:
Annual depreciation = (Cost - salvage value)/useful life
= 15000000/5 = $30,00,000
Computing the tax shield as follows:
Annual depreciation tax shield = Annual depreciation*Tax rate
= 3000000*35%
= 3000000*0.35 = $1050000
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If one were to examine all the producers, consumers, and apex predators in an ecosystem, and define their relationships to one another, this would be a ___ analysis. If one were to examine one phytoplankton species and identify an herbivore that consumes it, and then identify a predator that consumes that herbivore, then this would be an example of a ___ study.
The correct answers are Food web; food chain thus If one were to examine all the producers, consumers, and apex predators in an ecosystem, and define their relationships to one another, this would be a Food web analysis.
If one were to examine one phytoplankton species and identify an herbivore that consumes it and then identify a predator that consumes that herbivore, then this would be an example of a food chain study.
All the food networks in a single ecosystem make up a food web. Each organism in an ecosystem is a link in a number of food chains. Energy and nutrients can go along different food chains as they move through the ecosystem.
Both food chains and food webs demonstrate how energy is transferred through many consumers. Food chains display one set of predator/prey relationships, while food webs display all predator/prey links in an ecosystem.
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corn call options with a $1.75 strike price are trading for a $0.14 premium. farmer donald decides to hedge his 20,000 bushels of corn by selling short call options. the continuously compounded risk-free interest rate is 7.84% and he plans to close his position in 6 months. what is the total premium he will earn on his short position? g
the total premium he will earn on his short position is:
Actual Premium Earned
= 20,000*$0.14
= $2,800
Total Premium earned Including Interest Earned on the Premium
= $2,800*e(4%*1/2)
= $2,856.56
A top rate is the charge of the insurance you've chosen, charged via your coverage organization. A deductible is a quantity you have to pay earlier than your coverage business enterprise initiates coverage. For instance, if your vehicle insurance premium is $800 according to 12 months, you ought to pay your insurer $800 consistent with yr to have the coverage.
The premium rate is calculated by using dividing the sum insured by the sum assured. Because of this if you have a sum insured of Rs 10,000 and a sum confident of Rs 1,000 then your premium charge might be 10%. Calculating the insurance top rate is a critical step in the method of buying insurance.
Top-class merchandise is generally described as products that price 20% extra than the common category price. The reality that calls for developing more luxurious products would possibly appear counterintuitive, but it is true.
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g a registered trademark used in interstate is only protected under state common law. true false
This assertion is accurate. Only state common law provides protection for an interstate use of an officially registered brand.
Can a common law trademark be transferred?Common-law trademarks are exempt from written assignment requirements, however it is still preferable for practical reasons. Tinnerman Products Inc. v. Speed Products Co., 179 F.
State common law provides protection for intrastate trademark usage. Under the Lanham Act, trademarks used in interstate commerce may be protected. If a mark is registered, the owner of the mark may seek compensation from a violator who misrepresents products as being theirs.
Can a trademark exist without being registered?If you don't register your trademark, your legal rights will only apply to the regions in which you conduct business. This indicates that you might be able to prevent a later user of the mark from using it exclusively in your region, even if that user is a larger corporation.
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most people occupy many statuses at a particular point in time (e.g., student, son or daughter, employee, citizen). this list of statuses is known as the
Most people occupy many statuses at a particular point in time (e.g., student, son or daughter, employee, citizen). This list of statuses is known as the status set.
What is Status set?
A person's collection of social statuses is known as their status set. One can be a daughter, wife, mother, student, employee, churchgoer, and citizen, among other titles.
Robert K. Merton first used the phrase "status set" in 1957. He distinguished clearly between a "role set" and a "status set."
According to Merton, a society's status set is its set of statuses, whereas its role set is its set of duties.
When a person's statuses have both positive and bad effects on them, that circumstance is called status inconsistency.
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Suppose University Cereal operates in a monopolistic competition market and its cost and revenue curves are represented in the figure. Which of the following statements is true at the profit-maximizing production level?
Price
$10
MC
$9
$8
ATC
$7
$6
$5
$4
$3
$2
MR
$1
D
$0
0 10 20 30 40 50 60 70 80 90 100
Quantity
University Cereal is having a loss since its total cost exceeds total revenue and is in short-run equilibrium.
University Cereal is having zero profit since its total cost equals total revenue and is in the long-run equilibrium.
University Cereal is having positive profits since its total cost is less than total revenue and is in short-run equilibrium.
University Cereal is having a loss since its total cost is less than its marginal cost and is in long-run equilibrium.
The statement that is true at the profit-maximizing production level is B. University Cereal is having zero profit since its total cost equals total revenue and is in the long-run equilibrium.
How to illustrate the profit maximizing level?When the value of the last unit of product (marginal revenue) equals the cost of producing the last unit of production, a manager maximizes profit (marginal cost). Maximum profit is defined as the level of output at which MC equals MR.
Profit will be maximized where MR = MC because Universal Cereal operates in a monopolistically competitive market.
This happens for a quantity of 30 units, and the corresponding price (as determined by the demand curve) is $7.
The average price for 30 units is $7.
So, for Universal Cereal, total revenue equals total costs, it has zero profit, and it is profitable in the long run. In conclusion, the correct option is B.
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