The Average Level Of Profit Essay

data provided, this report provides details with respect to the profit-maximizing average daily production capacity for DermaPlusTM for each possible reference-based price of $50, $100, and $150 per unit identified by the consultant. The estimated expected daily profit at each price will also be provided. All unit and price values have been rounded to the nearest whole number or dollar. Information in terms of the recommended average daily production capacity in units for the next 12 months will

1. At the current level of output a firm's marginal cost equal 16 and marginal revenue equals 10. The firms A is producing the profit-maximizing amount. B should produce more. C should produce less. D Not enough information. 2. If the demand curve a monopoly faces is P = 100 - 2Q, then profit maximization A is achieved when 25 units are produced. B is achieved by setting price equal to 25. C is achieved only by shutting down in the short run. D cannot be determined solely from

semand, and the profit maximization rule. Economics has also allowed us to identify serting behaviors such as the total variable cost, total fixed cost, average variable cost, average fixed cost and marginal cost and many more. These concepts allow us today to develop a deeper understanding of the world around us and how business affects the world on a much larger scale for example the profit maximization rule states that the overall goal of any business is to maximize its profits. And a company

is $6.00 per widget. a. Fill in the formula for Average Fixed Cost, Average Variable Cost, Average Total Cost, Marginal Cost, Total Revenue, Marginal Revenue, and Total Profit at the top of the column in the gray section within the table. b. Fill in the missing values for Total Fixed Cost, Total Variable Cost, Average Fixed Cost, Average Variable Cost, Average Total Cost, Marginal Cost, Total Revenue, Marginal Revenue, and Total Profit in the blue sections of the table. Winsome Widget

of $10 for the last unit produced and sold. What is the average revenue per unit, and how many units were sold? a. $5 and 50 b. $5 and 100 c. $10 and 50 d. $10 and 100 When a profit-maximizing firm in a competitive market has zero economic profit, accounting

today as a corporation, as compared to a partnership, under the following conditions. Assume that all earnings will be paid out as cash dividends. Operating income (operating profit before taxes) will be $500,000 per year under either organizational form. The tax rate on corporate profits is 35 percent (Tc = 0.35), the average personal tax rate for the partners is also 35 percent (Tp = 0.35), and the capital gains tax rate on dividend income is 15 percent (Tdiv = 0.15). ANSWER P1-1a. a.

figures are above the industry average of 1.80 times and is indicative of the business having sufficient current assets to both cover for any current liabilities and maintain the business in operation, (Horngren, 2013, p. 803). The immediate payment of current liabilities can be measured

Furthermore, new policies were generated on every level, save three. Going forward, Company X can become profitable by changing its rating algorithm to maximize its demographically more profitable customers while reducing those that are loss-making. 2 GOAL AND STRATEGY The goal, of my proposed changes to the ratemaking algorithm, is to transform Company X from a firm in deficit to one in surplus. Additionally we will seek to have an acceptable underwriting profit while still staying competitive. And furthermore

Average cost is different from the price, and depends on the contact with demand through elasticity of demand and elasticity of supply. In cases of perfect competition, price may be lesser than average cost due to marginal cost pricing. In the short-run increase its level of output with the same fixed plant; the economies of that scale of production change into diseconomies and the average cost then begins to increasebrusquely. Average cost curve is a “U” shaped curve

Answers to Questions for Review 1. (Market Structure) Define market structure. What factors are considered in determining the market structure of a particular industry Market structure refers to the important features that determine the level of competition in an industry. These factors include (a) the number of buyers and sellers, (b) the products degree of uniformity, (c) the ease with which new firms enter or old firms exit the market, and (d) the ways in which firms in the industry compete