The federal reserve can be considered as the one which is known was to be option D. created in 1913.
What is federal reserve?Federal Reserve is the central bank of the United States, not Canada. The central bank of Canada is called the Bank of Canada. Both institutions are responsible for managing monetary policy in their respective countries, but they operate independently and have different mandates and structures.
The Federal Reserve was created by the U.S. Congress in 1913 to provide the nation with a stable and flexible monetary and financial system, while the Bank of Canada was established in 1934 to "promote the economic and financial well-being of Canada."
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fill in the blank A human resource ______ of an organization reveals the demographic of the firms labor force and whether it is technically up to date an thoroughly trained.
A human resource audit of an organization reveals the demographic of the firms labor force and whether it is technically up to date an thoroughly trained.
What is Human Resource Audit?Human resource audit is an examination of policies, procedures, documentation, systems, and practices of a human resource function.
The primary purpose of HR audit is to determine the effectiveness of HR policies and practices in order to ensure the HR department is in compliance with employment laws and to improve the overall functioning of the organization.
The audit identifies areas of HR where deficiencies exist and what actions need to be taken in order to rectify those deficiencies.
An HR audit should cover:
Employment policies and procedures
Personnel files
Benefits administration
Payroll Administration of human resources programs and functions
Training and development programs
Equal employment opportunity and affirmative action programs
Performance appraisal systems
Labor relations and compliance with employment laws
Occupational health and safety policies and practices
Personnel transactions conducted on an HRIS
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an economy in which elements of both private enterprise and government intervention are present is known as:
An economy that contains elements of private enterprise and government intervention is called a mixed economy.
A mixed economy is an economic system that combines elements of both capitalism and socialism. It has characteristics of both capitalism and socialism, but it is not purely either of them. It's a hybrid system that blends the best of both worlds.
What is a private enterprise? A private enterprise is a system in which businesses are owned and operated by individuals or groups of individuals. In a private enterprise system, the government has little or no involvement in the operation of businesses.
What is government intervention? Government intervention refers to the involvement of the government in the operation of the economy. The government may use its power to regulate or control economic activity, to redistribute income and wealth, or to provide public goods and services. Government intervention is often seen as necessary to correct market failures and ensure that the economy operates efficiently and fairly. However, too much government intervention can be harmful to economic growth and development.
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question number 2) government regulation influences the operations of most businesses. which regulatory topic did software ag's ceo briefly discuss?
Every industry is subject to certain government rules, and institutions are required to abide by these regulations.
What is the purpose of software AG?Enterprise software integration solutions are offered by the technology firm Software AG (SAG). The company provides a number of platforms, including adabas & natural, apis, integration, and microservices platforms, as well as IoT and analytics systems.
What would you say about Software AG's growth plan?Its declared objective is to grow through a "string of pearls" acquisition plan that emphasizes selective purchases that offer value in certain areas and are in demand by current clients.
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kamiya plans to open a business writing software. while researching her strategy, kamiya discovered a profitable niche in children's educational software. how will pursuing this niche help kamiya outperform her competitors?
Focusing on a profitable niche like children's educational software can help Kamiya differentiate herself from her competitors, develop a loyal customer base, and ultimately grow her business more effectively.
Reduced competition: By targeting a niche market, Kamiya can reduce the number of competitors she faces. This can make it easier for her to stand out and attract customers.Customer loyalty: If Kamiya creates high-quality educational software for children, she can develop a loyal customer base. Parents are often willing to invest in their children's education, and if they find a product that works well for them, they are likely to stick with it.Higher profit margins: By focusing on a niche market, Kamiya can charge higher prices for her software. Parents are often willing to pay a premium for educational products that they believe will help their children succeed.Opportunities for innovation: A niche market can provide Kamiya with opportunities to innovate and develop new products. By understanding the specific needs of her target market, she can create products that meet those needs in unique and effective ways.You can learn more about market niche at
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during times of economic recession, what can stimulate the economy? group of answer choices both monetary and fiscal policy can be used to influence economic activity the government erases debt for both individuals and businesses the central bank uses monetary policy to determine how much money and credit is available to consumers the government uses fiscal policy to impact government spending and taxes
During times of economic recession, both monetary and fiscal policy can be used to influence economic activity. The central bank uses monetary policy to determine how much money and credit is available to consumers, while the government uses fiscal policy to impact government spending and taxes.
What is Fiscal Policy?Fiscal policy is the use of government revenue collection and expenditure to influence the economy. The two major instruments of fiscal policy are government spending and taxation.
Changes in the level and composition of taxation and government spending can influence the following macroeconomic variables in an economy:
Aggregate demand and the level of economic activity;The pattern of resource allocation;The distribution of income;Fiscal policy is frequently used in conjunction with monetary policy, which attempts to influence the supply of money and credit in the economy.What is Monetary Policy?Monetary policy is the process by which the monetary authority of a country, like a central bank, controls the supply of money, often targeting an inflation rate or interest rate to guarantee price stability and general trust in the currency. Monetary policy is usually contrasted with fiscal policy, which focuses on government spending and taxation, and is implemented by the government rather than the central bank.
In monetary policy, the central bank uses several policy tools to influence the availability and cost of money and credit. These include open market operations, the discount rate, and reserve requirements, among others. Monetary policy is executed through a variety of channels, such as interest rates and credit flows. Monetary policy can be used to stabilize macroeconomic variables like inflation, output, employment, and foreign exchange rates, among others.
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if the nominal interest rate is 8% and the real interest rate is 3%, then the inflation rate equals:
The inflation rate is equal to 5%.
The nominal interest rate is the rate of interest that is quoted and publicized by the lender. It does not take into account the decrease in purchasing power due to inflation.
The real interest rate is the nominal rate minus the inflation rate. Therefore, if the nominal rate is 8% and the real rate is 3%, then the inflation rate is 5%.
To calculate the inflation rate, we must take the nominal interest rate minus the real interest rate. The nominal interest rate is the rate of interest that is advertised and publicized by the lender, while the real interest rate takes into account the decrease in purchasing power due to inflation.
In this example, the nominal interest rate is 8% and the real interest rate is 3%. By subtracting the real interest rate from the nominal interest rate, we get the inflation rate of 5%. This means that the inflation rate is 5% for this example.
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normative economic statements group of answer choices violate the law of ceteris paribus. contain value judgments. are usually irrational. are easily testable.
Normative economic statements "contain value judgments" and are usually irrational. Thus, Option B is correct.
Normative economic statements are subjective statements that involve value judgments and opinions. These statements cannot be easily tested or proven true or false, as they are based on personal beliefs and opinions. They are different from positive economic statements, which are objective and based on empirical evidence.
Normative statements violate the law of ceteris paribus, which means that they do not consider all the factors that could affect an economic decision. As a result, they cannot be easily tested or verified. It is important to differentiate between normative and positive statements when analyzing economic theories and policies.
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if a company understates its ending inventory in the current period, what effect will this have on cost of goods sold in the following period?
If a company understates its ending inventory in the current period, this will cause cost of goods sold in the following period to be overstated.
When a company understates its ending inventory in the current period, it is recognizing less inventory than is actually present. This results in the cost of goods sold in the following period being higher than it would be if the company had reported the accurate ending inventory.
To illustrate this concept, assume a company had $10,000 of inventory on hand at the end of a period. If the company understates this ending inventory by $2,000 and recognizes only $8,000 in inventory, then the cost of goods sold in the following period will be overstated by $2,000 because the company is effectively accounting for more inventory than actually exists.
As a result, cost of goods sold in the following period will be overstated by $2,000.
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what is an advantage of direct marketing? multiple choice question. it can be customized to match the needs of a target
An advantage of direct marketing is that it can be customized to match the needs of a target audience.
What is direct marketing?Direct marketing is a marketing strategy that involves communicating with customers directly without using intermediaries such as advertising, public relations, or salespeople. Companies use direct marketing to contact customers with targeted messages, encouraging them to make purchases, respond to surveys, or take some other action.
Direct marketing has several advantages, including:
Personalization - Direct marketing allows businesses to tailor their messaging to the needs and preferences of individual customers, providing a more personalized experience. This is important because customers are more likely to respond positively to messages that are relevant to their interests.Cost-effectiveness - Direct marketing is a cost-effective way to reach customers because businesses can target specific segments of the population with tailored messages.Improved response rates - Direct marketing has been shown to have higher response rates than traditional forms of advertising because it is more targeted and personalized.Measurability - Direct marketing campaigns can be easily tracked and measured, allowing businesses to determine the effectiveness of their messaging and adjust their strategies accordingly.Greater control - Direct marketing gives businesses greater control over the messages they send to customers, allowing them to tailor their messaging to specific segments of the population as needed.To know more about direct marketing refer here :
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according to sponsorship, based on a 2015 study, what percentage of the north american sponsorship market is sports?
According to sponsorship, based on a 2015 study, 70% of the North American sponsorship market is sports.
What is sponsorship?Sponsorship refers to the monetary or in-kind support given by businesses to organizations, events, or causes. Businesses benefit from increased brand recognition, improved consumer perception, and increased sales when they sponsor something.The practice of sponsoring anything in exchange for something in return is known as sponsorship.
When one firm supports another, they typically do so to increase recognition, reputation, or influence. Companies can also sponsor events, which can help them attract new customers and boost their brand image.
What percentage of the North American sponsorship market is sports?According to a 2015 report, sports events are the most popular sponsorship item, accounting for around 70% of the North American sponsorship market. Sports events are followed by entertainment and non-profit organizations, respectively, in terms of popularity.
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All else equal, what happens to the price level and unemployment when investment spending by firms increases?
When investment spending by firms increases, "the price level tends to increase, while unemployment decreases" due to increased demand for labor and production.
This relationship is based on the theory that increased investment spending leads to an increase in aggregate demand, which causes an upward pressure on prices as demand exceeds supply. At the same time, the increased demand for goods and services also creates more job opportunities, reducing the number of unemployed workers seeking jobs.
Therefore, as firms invest more, the economy tends to experience a higher level of economic growth, which leads to lower unemployment and higher inflation.
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the toy box pays an annual dividend of $2.40 per share and sells for $46.60 a share based on a market rate of return of 15 percent. what is the capital gains yield?
The capital gains yield is 9.44%.
Capital gains yield is the percentage of an investment's value that increases in a given year as a result of share price increases. In this question, we are asked to find the capital gains yield of the toy box that pays an annual dividend of $2.40 per share and sells for $46.60 a share based on a market rate of return of 15 percent. The formula to calculate capital gains yield is: Capital gains yield = (P1 - P0) / P0 × 100%Where:P0 is the purchase price of the stock, which is $46.60P1 is the selling price of the stock, which is unknown at this point.
Therefore, the formula to calculate the capital gains yield can be written as: Capital gains yield = (P1 - $46.60) / $46.60 × 100%We need to solve for P1. To do that, we can use the following formula: Market rate of return = dividend yield + capital gains yield Or Capital gains yield = market rate of return - dividend yield .Substituting the values into the above formula: Capital gains yield = 15% - ($2.40 / $46.60)Capital gains yield = 9.44%Therefore, the capital gains yield is 9.44%.
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who at ucf is required to comply with the prohibition of discrimination, harassment and related interpersonal violence policy? group of answer choices faculty and staff only faculty, staff, students and ucf-affiliated vendors non-affiliates of ucf, such as visitors students only
The group of people at UCF who are required to comply with the Prohibition of Discrimination, Harassment and Related Interpersonal Violence Policy are faculty, staff, students, and UCF-affiliated vendors.
Prohibition of Discrimination, Harassment and Related Interpersonal Violence Policy is an official university policy that prohibits acts of discrimination, harassment, sexual harassment, dating violence, domestic violence, stalking, retaliation, and any other forms of interpersonal violence.
It aims to prevent and promptly address all forms of violence and harassment, foster a safe, respectful, and inclusive learning and working environment, and ensure that the university community is free from any form of discrimination or harassment.
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individual taxpayers are not taxed on their cancellation of debt (cod) income if their debt was forgiven as part of bankruptcy proceedings group of answer choices true false
True. Individual taxpayers are not taxed on their Cancellation of Debt (COD) income if their debt was forgiven as part of bankruptcy proceedings.
This applies to any debts forgiven in the tax year, such as credit card debt, student loan debt, business debt, or other forms of debt.
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philip morris markets marlboro cigarettes, the number-one selling cigarette brand in the world. outside the united states, marlboro generates huge profits that philip morris uses to support other less successful sbus. according to the bcg matrix, marlboro is an example of a .
Marlboro is an example of a cash cow according to the BCG Matrix.
Cash cows have high market share in a mature market, meaning that they have already established themselves as a leader in their market, and the demand for their product is stable and consistent.
Marlboro cigarettes have been the leading brand of cigarettes in the world for decades and the demand for their product remains steady. The profits from Marlboro cigarettes outside the United States are used to support other, less successful SBUs within the Philip Morris company. As a cash cow, Marlboro brings in steady profits to the company, which can then be used to support the other parts of the business.
In summary, according to the BCG Matrix, Marlboro cigarettes are classified as a cash cow. A cash cow is a product that has a high market share in a low-growth industry, generating excess cash that can be used to fund other business units that are not as profitable.
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a differentiator will always seek out ways of distinguishing itself from similar competitors to justify price premiums greater than the costs incurred by differentiating. group of answer choices true false
Answer: The statement is generally true.
Differentiation is a strategy that businesses use to make their products or services stand out from similar offerings in the market. By highlighting unique features, benefits, or attributes, businesses can create perceived value for their offerings and justify price premiums that are greater than the costs incurred by differentiating.
However, it is important to note that the success of differentiation depends on several factors, such as the target market, the level of competition, the quality of the offering, and the effectiveness of marketing and branding efforts. Differentiation is not always a foolproof strategy and may not always result in sustained competitive advantage or increased profitability.
Explanation:
when there is a sharp decline in the cboe volatility index (vix), stock prices also tend to decline. group of answer choices false true
The statement that when there is a sharp decline in the CBOE Volatility Index (VIX), stock prices also tend to decline, is true. The CBOE Volatility Index (VIX) is a measure of market volatility and is often referred to as the “fear gauge”, as it is a measure of the expectation of volatility over the next 30 days.
When the VIX is high, it typically indicates that investors are expecting a sharp market move, either up or down. When the VIX is low, it typically indicates that investors are expecting a relatively calm and steady market. Therefore, when the VIX experiences a sharp decline, this is often a sign that investors are becoming more confident and less fearful, and that stock prices will tend to follow suit.
To illustrate this, consider the recent market volatility caused by the coronavirus pandemic. As the virus spread, market uncertainty increased and the VIX spiked to an all-time high of 82.69. This was followed by a sharp decline in the VIX, as investors became increasingly confident that the worst of the crisis was over. This confidence was reflected in the stock market, and the S&P 500 rose by approximately 25%.
Overall, the statement that when there is a sharp decline in the CBOE Volatility Index (VIX), stock prices also tend to decline, is true. The VIX is a measure of market volatility, and when it declines, it typically indicates that investors are becoming more confident and stock prices will rise as a result.
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if 63 million workers produced gdp in mexico in 2018, using the bar graph, how much output did the average worker produce?
To calculate the output of the average worker, we need to divide the GDP by the number of workers. Using the bar graph, we can estimate that the GDP for Mexico in 2018 is approximately $2 trillion.
Therefore, the output of the average worker can be calculated as follows: Output of the average worker = GDP / Number of workers Output of the average worker = $2 trillion / 63 million Output of the average worker ≈ $31,746Therefore, the output of the average worker in Mexico in 2018 was approximately $31,746.
GDP measures the monetary value of final goods and services—that is, those that are bought by the final user—produced in a country in a given period of time (say a quarter or a year). It counts all of the output generated within the borders of a country.
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what three things do businesses typically do when faced with increased risk from cross-border investments?
Businesses typically take the following three steps when faced with increased risk from cross-border investments: diversification, hedging, and insurance.
Diversification means investing in a variety of assets, as it reduces the risks of a single investment. Hedging is the use of financial instruments to reduce the potential losses of a particular investment.
Lastly, insurance can be purchased to protect against any losses due to unexpected changes in the market.
By diversifying, hedging, and insuring investments, businesses are able to reduce their risk from cross-border investments.
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lawyers work in pleasant surroundings at low risk of injury, but they generally receive higher pay than construction workers. this is because
The statement that lawyers work in pleasant surroundings at low risk of injury, but they generally receive higher pay than construction workers because: Lawyers work in pleasant surroundings at low risk of injury, but they generally receive higher pay than construction workers because of their higher education and specialized skills.
The level of education required for a lawyer is much higher than for a construction worker. Lawyers usually have completed an undergraduate degree and then have gone to law school for at least three years. During their education, they have learned skills such as research, writing, and critical thinking, as well as specialized knowledge of the law. These skills and knowledge are in high demand and are what allow lawyers to command higher salaries.Construction workers typically do not require as much education and training as lawyers. While there may be some specialized skills required for certain construction jobs, the overall level of knowledge and education required is generally lower than that of a lawyer. This is why construction workers typically receive lower pay than lawyers, even though their jobs may involve more physical labor and a higher risk of injury.
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aunt butch borrows $19,500 from the bank at 8 percent annually compounded interest to be repaid in 10 equal annual installments. the interest paid in the third year is
The interest paid in the third year is $1,336, which can be calculated using the formula for the present value of an annuity.
To calculate the interest paid in the third year, we first need to find the amount of each annual installment. We can use the formula for the present value of an annuity to do this:
[tex]PV = PMT x\frac{(1 - 1/(1+r)^n) }{r}[/tex]Where PV is the present value (the amount borrowed), PMT is the amount of each annual payment, r is the annual interest rate (8% or 0.08), and n is the number of payments (10). Plugging in the given values, we know:
PV = $19,500r = 0.08n = 10So:
[tex]PMT= PV /\frac{(1 - 1/(1+r)^n) }{r}[/tex][tex]PMT= 19,500 /\frac{(1 - 1/(1+0.08)^10) }{0.08}[/tex]PMT = $3,050.87So the amount of each annual payment is $3,050.87.
Now we need to find the interest paid in the third year. Since the payments are equal, we can use the formula for the future value of an annuity to find the amount of the remaining payments after two years:
[tex]FV = PMT x\frac{((1+r)^n - (1+r)^t) }{r}[/tex]where FV is the future value, t is the number of years already passed (2), and all other variables are the same as before. Plugging in the values, we get:
[tex]FV = 3,050.87 x\frac{((1+0.08)^10 - (1+0.08)^2) }{0.08}[/tex]FV = $22,376.98So after two years, Aunt Butch still owes $22,376.98. To find the interest paid in the third year, we subtract the remaining balance after two years from the total amount borrowed, and then calculate 8% of that amount:
Interest paid in third year = 0.08 x ($19,500 - $22,376.98)Interest paid in third year = $1,336.16Therefore, the interest paid in the third year is $1,336 (rounded to the nearest dollar).
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what is the term for the negative result of an organization raising the price of a product too far above the equilibrium
The term for negative result of an organization raising the price of a product too far above the equilibrium is "price ceiling" or "price floor."
What is a price ceiling?A price ceiling is a government-imposed limit on the maximum price that can be charged for a particular good or service. The intention behind a price ceiling is often to make that good or service more affordable and accessible to consumers, especially those with lower incomes. Price ceilings are typically implemented during times of economic hardship or crisis, such as during a natural disaster or a recession. However, setting a price ceiling can have unintended consequences, such as shortages, decreased quality, and even a black market for the product or service. In some cases, businesses may stop producing or offering the good or service altogether if they cannot earn a profit under the price ceiling, which can worsen the situation for consumers.
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martha and liz have applied for a mortgage. they both have excellent credit and very successful careers and they are perfect on paper. martha and liz are partners and are expecting the birth of their first child together. they are denied a loan. what's the violation here?
Martha and Liz have likely been denied a mortgage due to their marital status. In some jurisdictions, it is illegal to deny a loan to individuals based on their sexual orientation or marital status. This practice is a violation of their civil rights and would be considered discriminatory.
The violation in the given situation is likely based on discrimination against Martha and Liz due to their sexual orientation or marital status. Mortgage discrimination is against the law in the United States, and it occurs when a lender refuses to lend to someone based on their characteristics that are protected by the Fair Housing Act. Discrimination based on race, gender, national origin, disability, and familial status is prohibited under the Fair Housing Act, as well as discrimination based on sexual orientation or marital status in certain states or localities.
It is entirely possible that the lending institution denied Martha and Liz's mortgage loan because of their sexual orientation or marital status. They may have looked perfect on paper in terms of their credit scores and job stability, but discrimination can come in many forms, and it is not always evident.
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which of the following would ordinarily be classified as current assets on the balance sheet? note: select all that apply. check all that apply accounts receivable accounts receivable accounts payable accounts payable cash cash
A: Accounts Receivable and C: Cash are ordinarily classified as current assets on the balance sheet.
Based on typical accounting practices, the following items would ordinarily be classified as current assets on the balance sheet:
Accounts receivable: This is money that a business is owed by its customers for goods or services that have been sold but not yet paid for.Cash: This includes all the cash that a business has on hand or in bank accounts.Accounts payable, on the other hand, is typically classified as a current liability on the balance sheet. Accounts payable refers to the money that a business owes to its suppliers or vendors for goods or services that have been purchased but not yet paid for.
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a change in relative prices between two counties has caused net exports to increase, resulting in real gdp increasing from $12,000 to $17,000. what is the percent change in real gdp? round your answer to the nearest tenth.
The percent change in real GDP between two countries is (17000 - 12000) / 12000 = 41.7%. The percent change in real GDP is 41.7%, rounded to the nearest tenth.
To find the percent change in real GDP, we can use the following formula:
Percent change in real GDP = ((New real GDP - Old real GDP) / Old real GDP) x 100%
Substituting the given values, we get:
Percent change in real GDP = ((17000 - 12000) / 12000) x 100%
Percent change in real GDP = (5000 / 12000) x 100%
Percent change in real GDP = 41.7%
Therefore, the percent change in real GDP is 41.7%, rounded to the nearest tenth.
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the receivable that is usually evidenced by a formal instrument of credit is a(n) a.accounts receivable. b.note receivable. c.intangible receivable. d.income tax receivable.
The receivable that is usually evidenced by a formal instrument of credit is a note receivable.
What is Receivable?Receivable is a bookkeeping term for money that a business is owed. An accounts receivable, for example, is money that a customer owes a business for goods or services purchased on credit. A note receivable is a more formal type of credit that is used less often.
The following are the various types of receivables:
Trade receivables are receivables that result from the provision of services or goods by a business. In other words, it is the sum of money owed to a company by its customers. Accounts receivables, trade notes, bills of exchange, and promissory notes are all examples of trade receivables.
Non-trade receivables are financial assets that do not result from the primary activities of a company. This sort of receivable, unlike trade receivables, does not arise from commercial activity. Tax refunds, dividends receivable, and insurance claims are examples of non-trade receivables.
Conclusion:Thus, the receivable that is usually evidenced by a formal instrument of credit is a note receivable.
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the announcement of an increase in the cash dividend should, according to mm, leads to an increase in the price of the firm's stock. true false
The announcement of an increase in the cash dividend should, according to MM, leads to an increase in the price of the firm's stock.
MM, also known as the Modigliani-Miller theorem, is an influential economic theory on capital structure. It implies that the market price of a company is decided by its future profits and should be independent of the financing choices made to achieve those profits. When a company announces an increase in the cash dividend, it can lead to an increase in the price of the firm's stock. It is because the dividend payment is an essential component of a firm's value for its investors. Companies use dividend payments to return capital to shareholders and also as a way of signalling that the company is doing well financially, which makes it more attractive to investors. Therefore, an increase in the cash dividend can have a positive impact on the value of the firm's stock.
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project risk is lowest during the: concept stage of the project life cycle. implementation stage of the project life cycle. termination stage of the project life cycle. development stage of the project life cycle.
The project life cycle stage where risk is lowest is when the project is terminated.
When in a project's life cycle is risk the greatest?Stakeholders have the most power to affect project results during the project's first phases. Due to the huge proportion of unknowable elements, risk is at its maximum during this phase.
Why is a project considered low risk?Minimal risk suggests that there won't be a significant negative effect on the organisation should the project fail. Hard implementation describes the resources needed to successfully accomplish the project, which include both a large number of people and a large sum of money or assets.
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if 12,500 units were produced and sold, what is the average fixed manufacturing cost per unit produced?
The average fixed manufacturing cost per unit produced is calculated by dividing total fixed costs by the number of units produced. In this case, if 12,500 units were produced and sold, the average fixed manufacturing cost per unit is calculated by dividing total fixed costs by 12,500 units.
Total fixed costs can be found by subtracting the variable manufacturing costs from the total costs. This can be calculated by multiplying the variable costs by the number of units produced and subtracting it from the total cost of production. After subtracting variable costs, divide the resulting number by the number of units produced to find the average fixed manufacturing cost per unit.
Therefore, the formula to calculate the average fixed manufacturing cost per unit produced is as follows: Average fixed manufacturing cost per unit produced = (Total cost of production - (Variable cost per unit x Number of units produced)) / Number of units produced.
In this case, the average fixed manufacturing cost per unit produced is equal to (Total cost of production - (Variable cost per unit x 12,500)) / 12,500.
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Assume the market price is $65, marginal cost is $35, marginal revenue is $35, and average total cost is $39. In this market, the monopolist will
A)operate at a loss.
B)operate at a profit.
C)have zero profits.
D)expand their output.
If the price is higher than the average total cost, the monopolist will operate at a profit. Option B is correct.
In this market, the monopolist will B) operate at a profit.
To determine this, we can follow these steps:
1. Compare marginal cost (MC) and marginal revenue (MR). If MC = MR, the monopolist has maximized their profit.
2. Check if the average total cost (ATC) is less than the market price.
In this case, MC = $35 and MR = $35, so the monopolist has maximized their profit. Additionally, ATC = $39, which is less than the market price of $65. Since the price is higher than the average total cost, the monopolist will operate at a profit. Option B is correct.
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