In the product market there is a situation of sophisticated competition. The firm signed a contract to rent a factory for a year. bloody The rent is NIS 12,000 per month. Below are the firm's monthly expenses 3 2 quantity (in units) 18,000 Total variable expenses Total expense 5 88,000 100,000 64,000 45,000 28,000 76,000 57.000 40.000 30,000 After the contract was signed, the market price dropped to NIS 17,000 per unit. As a result, what will be the profit that the firm will refer to in its decisions regarding production in the short term (what is the operating profit)!

Managerial Economics: A Problem Solving Approach
5th Edition
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Chapter5: Investment Decisions: Look Ahead And Reason Back
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In the product market there is a situation of sophisticated competition. The firm signed a contract to rent a factory for a year. bloody
The rent is NIS 12,000 per month. Below are the firm's monthly expenses
3
5
88,000
100,000
question (4)
64,000 45,000
28,000
76,000 57.000 40.000 30,000
quantity (in units)
18,000 Total variable expenses
Total expense
After the contract was signed, the market price dropped to NIS 17,000 per unit. As a result, what will be the profit that the firm
will refer to in its decisions regarding production in the short term (what is the operating profit)!
Transcribed Image Text:In the product market there is a situation of sophisticated competition. The firm signed a contract to rent a factory for a year. bloody The rent is NIS 12,000 per month. Below are the firm's monthly expenses 3 5 88,000 100,000 question (4) 64,000 45,000 28,000 76,000 57.000 40.000 30,000 quantity (in units) 18,000 Total variable expenses Total expense After the contract was signed, the market price dropped to NIS 17,000 per unit. As a result, what will be the profit that the firm will refer to in its decisions regarding production in the short term (what is the operating profit)!
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