Business
Business, 15.04.2021 15:20, pamisueparke

Kalamazoo Competition-free Concrete (KCC) is a local monopolist of ready-mix concrete. Its annual demand function is Qd = 16,000 – 200P, where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yard sold per year. Suppose that Kalamazoo’s marginal cost is $20 per cubic yard and its avoidable fixed cost $100,000 per year. What is its profit-maximizing sales quantity and price? How would your answer change if Kalamazoo had an avoidable fixed cost of $200,000 a year? What if that $200,000 fixed cost were instead sunk? [Hint: Recall that when the fixed cost is sunk, the monopolist has to pay $200,000 in cost even if he decides to shut down.]

answer
Answers: 1

Other questions on the subject: Business

image
Business, 22.06.2019 04:10, maddylaugh
Lynch company manufactures and sells a single product. the following costs were incurred during the company’s first year of operations: variable costs per unit: manufacturing: direct materials $ 12 direct labor $ 6 variable manufacturing overhead $ 1 variable selling and administrative $ 1 fixed costs per year: fixed manufacturing overhead $ 308,000 fixed selling and administrative $ 218,000 during the year, the company produced 28,000 units and sold 15,000 units. the selling price of the company’s product is $56 per unit. required: 1. assume that the company uses absorption costing: a. compute the unit product cost. b. prepare an income statement for the year. 2. assume that the company uses variable costing: a. compute the unit product cost. b. prepare an income statement for the year.
Answers: 1
image
Business, 22.06.2019 07:10, carlybeavers50
In a team environment, a coordinator is? a person with expert knowledge or skills in a particular area the team needs. a good listener who works to resolve social problems among teammates. a leader who team members focus on their tasks. a good networker who likes to explore new ideas and possiblities.
Answers: 2
image
Business, 22.06.2019 16:00, ari313
What impact might an economic downturn have on a borrower’s fixed-rate mortgage? a. it might cause a borrower’s payments to go up. b. it might cause a borrower’s payments to go down. c. it has no impact because a fixed-rate mortgage cannot change. d. it has no impact because the economy does not affect interest rates.
Answers: 1
image
Business, 22.06.2019 19:00, RoyalGurl01
Describe how to write a main idea expressed as a bottom-line statement
Answers: 3
Do you know the correct answer?
Kalamazoo Competition-free Concrete (KCC) is a local monopolist of ready-mix concrete. Its annual de...

Questions in other subjects:

Konu
Mathematics, 29.03.2021 23:50
Konu
Mathematics, 29.03.2021 23:50