Earlier we mentioned the special case of a monopoly where mc = 0. let’s find the firm’s best choice when more goods can be produced at no extra cost. since so much e-commerce is close to this model—where the fixed cost of inventing the product and satisfying government regulators is the only cost that matters—the mc = 0 case will be more important in the future than it was in the past. for each demand curve, calculate the profit-maximizing level of output and price as well as the monopolist's profit.

a. p=200− fixed cost = 1,000.

profit-maximizing output q =

profit-maximizing price p = $

monopolist's profit: $

Why entrepreneurs start businesses. a) monopolistic competition b) perfect competition c) sole proprietorship d) profit motive

Vortex company operates a retail store with two departments. information about those departments follows. department a department b sales $ 800,000 $ 450,000 cost of goods sold 497,000 291,000 direct expenses salaries 125,000 88,000 insurance 20,000 10,000 utilities 24,000 14,000 depreciation 21,000 12,000 maintenance 7,000 5,000 the company also incurred the following indirect costs. salaries $36,000 insurance 6,000 depreciation 15,000 office expenses 50,000 indirect costs are allocated as follows: salaries on the basis of sales; insurance and depreciation on the basis of square footage; and office expenses on the basis of number of employees. additional information about the departments follows. department square footage number of employees a 28,000 75 b 12,000 50 required: 1. determine the departmental contribution to overhead and the departmental net income for department a and department b.

According to fiedler, in situations that are very unfavorable for the leader, it would be wise to choose someone who: a. is task oriented. b. is likely to engage in behaviors that are classified as consideration behaviors. c. has a low lpc score. d. has a high lpc score.