Answer:
Explanation:
the sarbane oxley act was introduced due to the high rate of fraud cases that was prevalent in the financial market. It protects investors from fraud.
This answer is to highlight some of the pros and cons of the Act
SOX has both merits and demerits to the companies who implement it.
The Pros are:-
1. After it was the introduced there have been no major cases financial statement fraud in the United States of America. It has been advantageous in this aspect.
2. Financial information has become more reliable than it was in the past. It has brought about an increase in the reliability of financial information to members of the public as certain guidelines have been specified that must be followed by all organizations.
3. it has brought about transparency, no important information is withheld from financial statements.
cons
1. greater cost are required for auditing to be done by an organisation. following sox guidelines auditors put in more efforts
2. the cost of implementation is great. more resources are usually hired by an organization because sox has some procedures that could be said to be complicating.
Identify effective decision making techniques?
Answer:
Step 1: Identify the decision. You realize that you need to make a decision. ...
Step 2: Gather relevant information. ...
Step 3: Identify the alternatives. ...
7 STEPS TO EFFECTIVE.
Step 4: Weigh the evidence. ...
Step 5: Choose among alternatives. ...
Step 6: Take action. ...
Step 7: Review your decision & its consequences.
ctual and budgeted fixed overhead $1,092,000 Standard variable overhead rate $27.00 per standard labor hour Actual variable overhead costs $137,144 Overhead is applied on standard labor hours. (Round interim calculations to the nearest cent.) The direct labor rate variance is
Answer:
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Explanation:
Giving the following information:
Actual and budgeted fixed overhead $1,092,000
Standard variable overhead rate $27.00 per standard labor hour
Actual variable overhead costs $137,144
We weren't provided with enough information to calculate the direct labor rate variance. But I will provide the formula.
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Actual rate= actual direct labor costs/total actual hours worked
Most Solutions, Inc., issued 12% bonds, dated January 1, with a face amount of $420 million on January 1, 2021. The bonds mature in 2031 (10 years). For bonds of similar risk and maturity the market yield is 14%. Interest expense is recorded at the effective interest rate. Interest is paid semiannually on June 30 and December 31. Most recorded the sale as follows:
January 1, 2021
Cash (price) 375,505,452
Discount on bonds (difference) 44,494,548
Bonds payable (face amount) 420,000,000
Required:
What would be the amount(s) related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2021? (List any cash outflow with a minus sign. Enter your answers in whole dollars.)
Answer:
Most Solutions, Inc.
Amounts related to the bonds that Most would report in its statement of cash flows for the year ended December 31, 2021:
Operating activities:
Interest payments -$50.4 million
Financing activities:
Bonds issue $375,505,452
Explanation:
a) Data and Calculations:
January 1, 2021:
Face value of bonds issued = $420 million
Maturity period of bonds = 10 years (2031)
Coupon interest rate = 12%
Market yield = 14%
Payment of interest expense = semiannually (June 30 and December 31)
Debit Cash (price) 375,505,452
Debit Discount on bonds (difference) 44,494,548
Credit Bonds payable (face amount) 420,000,000
To record the bonds proceeds and discount.
Cash payments for Bonds Interests:
June 30 $25.2 million
December 31 $25.2 million
Rank the five following levels of post secondary education based on the average yearly income .
Examine a Twitter feed or other social media (e.g., LinkedIn) for persuasive micromessages that feature AIDA components, such as attention getters, reader benefits, calls for action, limited-time offers, freebies, and so on.
Explain digital-age persuasion, identify effective persuasive techniques, and apply the 3 x 3 writing process to persuasive messages in print and online.
Describe the traditional four-part AIDA strategy for creating successful persuasive messages.
Apply the four elements to draft effective and ethical business messages.
Create effective and ethical direct-mail and e-mail sales messages.
Answer:
27 messages and points
Explanation:
Ayo Baseball Fans who do you think will win the World Series! (I’m really bored lol)
Answer:
Joe.....................
Super Carpeting Inc. (SCI) just paid a dividend (Do) of $1.68 per share, and its annual dividend is
expected to grow at a constant rate (9) of 3.50% per year. If the required return (rs) on SCI's stock is
8.75%, then the intrinsic value of SCI's shares. .............................
per share.
Which of the following statements is true about the constant growth model?
с
The constant growth model can be used if a stock's expected constant growth rate is less than its
required return.
C
The constant growth model can be used if a stock's expected constant growth rate is more than
its required return.
Use the constant growth model to calculate the appropriate values to complete the following
statements about Super Carpeting Inc.:
• If SCI's stock is in equilibrium, the current expected dividend yield on the stock will
be..................per share.
• SCI's expected stock price one year from today will be........
...per share.
. If SCI's stock is in equilibrium, the current expected capital gains yield on SCI's stock will
be.............
....per share.
The constant growth model can be used if a stock's expected constant growth rate is less than its required return. So, the correct answer is option a.
Dividends (D1) For next period = D1 (1 + g)
= 1.65 x(1.035)
= 1.7388
P0 = (Div1 )/(r - g)
= 1.7388
= .0875- .35
= $33.12 per share
Div 1 = Dividend for next period
r = required rate of return
g = growth rate of dividend
A dividend is the payment of business profits to qualified shareholders.
The board of directors of an organisation decides on dividend distributions and quantities.
When expressed as a percentage of a company's stock price, the dividend yield is the dividend paid out per share.
Many businesses save their profits to reinvest in the business rather than paying dividends.
Shareholders with voting rights must approve dividends. Although they are less prevalent, dividends can also be distributed as stock shares.
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What is wrong with this sentence? The report applies to western Europe, where people are interested in these exports.
The issue with the sentence is that : The sentence is grammatically correct, but it is unclear what "these exports" refer to
What is wrong with this sentence?The sentence is grammatically correct, but it is unclear what "these exports" refer to. To improve clarity, the sentence should be revised to provide more context or specificity about the exports in question.
For example: "The report applies to western Europe, where people are interested in buying cars from Japanese manufacturers."
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Tony Hsieh is a big thinker and Zappos is clearly his baby. But he's also into philanthropy and community development activities that are taking up more of his time. And, perhaps he'll come up with other new business ideas as well. As a leadership coach, what steps would you recommend that he take now to ensure that his leadership approach and vision lives on at Zappos long after his departure? What can a strong and secure leader like him do to ensure a positive leadership legacy in any situation?
To ensure a positive leadership legacy, Tony Hsieh can focus on mentorship, succession planning, and fostering a strong company culture at Zappos.
What is positive leadership legacy?Character, decisions, behavior, consistency, confidence, and compassion are the six pillars of your leadership legacy that may decide how you establish, create, grow, and are remembered. From inside, take the initiative.
Leaving a leadership legacy does not imply leaving something for future generations. It's leaving an impression on folks.
Legacy is determined not just by your accomplishments and vision, but also by how you conduct yourself as a leader and the decisions you make on a daily basis. "If you decide to do the right thing when no one is looking, you build a track record, and people trust you," Bates explained.
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acts as a medium of exchange between buyers and sellers.
Example of a market for a good or service that is not rely on a physical store or location 
An example of a market for a good or service that does not rely on a physical store or location is the online marketplace. With the advent of the internet and e-commerce platforms, businesses and individuals can sell products and services entirely online without the need for a brick-and-mortar store.
Online marketplaces, such as Amazon, eBay, and Alibaba, provide a platform where buyers and sellers can connect and conduct transactions electronically. These platforms enable businesses to showcase their products, provide detailed descriptions, and facilitate secure online payments. Customers can browse through a wide range of products, compare prices, read reviews, and make purchases from the comfort of their own homes.
The online marketplace has revolutionized various industries, including retail, entertainment, travel, and professional services. It allows businesses to reach a global customer base, operate 24/7, and reduce overhead costs associated with physical stores. Additionally, it provides convenience for consumers, who can shop anytime, anywhere, and have products delivered to their doorstep.
Overall, the online marketplace has transformed the way goods and services are bought and sold, offering a virtual alternative to traditional physical stores and locations.
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NewTech purchases computer equipment for $255,000 to use in
operating activities for the next four years. It estimates the equipment's
salvage value at $20,000. What’s the year end hook value formula ?
The year-end book value formula for the computer equipment is given as
Year-End Book Value = Cost of Equipment - Accumulated Depreciation
At the end of the fourth year, the year-end book value will be 0
How to calculate Year-end book valueThe year-end book value formula for the computer equipment as
Year-End Book Value = Cost of Equipment - Accumulated Depreciation
To know the accumulated depreciation for each year, use the following formula:
Annual Depreciation = (Cost of Equipment - Salvage Value) / Useful Life
Where the useful life is the estimated number of years the equipment will be used in the business before it is sold or retired.
With 4 years of use, we can calculate the annual depreciation as follows:
Annual Depreciation = ($255,000 - $20,000) / 4
Annual Depreciation = $63,750
Therefore, the year-end book value formula for the computer equipment at the end of each year would be:
Year 1: $255,000 - $63,750 = $191,250
Year 2: $255,000 - ($63,750 x 2) = $127,500
Year 3: $255,000 - ($63,750 x 3) = $63,750
Year 4: $255,000 - ($63,750 x 4) = $0
At the end of the fourth year, the accumulated depreciation will equal the cost of the equipment minus its estimated salvage value, so the year-end book value will be zero.
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Click to review the online content. Then answer the question(s) below, using complete sentences. Scroll down to view additional
questions.
Online Content Site 1
This site shows the occupations with the highest expected growth rates over the period 2014 - 2024. Which occupation is expected
to grow at the highest percentage increase? Is this occupation also expected to have the largest increase in the number of jobs?
Explain.
Answer:
there's is no meaning to this question
Question 5 of 10
Identifying people who might have the desire and ability to buy is called
O A. approaching
O B. order taking
O C. closing
O D. prospecting
2. Carson Inc.'s manager believes that economic conditions during the next year will be strong, normal, or weak, and she thinks that the firm's returns will have the probability distribution shown below. What's the coefficient variation for this firm’s returns??
Economic
Conditions Prob. Return
Strong 25% 30.0%
Normal 45% 12.0%
Weak 30% -14.0%
The coefficient variation for Carson Inc.'s returns is 4.06.
The coefficient of variation (CV) is a measure of relative dispersion or risk for a set of data. It is calculated as the standard deviation divided by the mean of the data, expressed as a percentage.
First, we need to calculate the expected return for Carson Inc.'s returns:
Expected return = (0.25 x 0.30) + (0.45 x 0.12) + (0.30 x -0.14) = 0.045 or 4.5%
Next, we need to calculate the standard deviation
Standard deviation = √((0.25 x (0.30 - 0.045)²) + (0.45 x (0.12 - 0.045)²) + (0.30 x (-0.14 - 0.045)²)) = 0.1828 or 18.28%
Finally, we can calculate the coefficient of variation
Coefficient of variation = standard deviation / expected return = 0.1828 / 0.045 = 4.06
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When planning acts like a ritual in modern organization, then it suffers from which problem?
When planning acts like a ritual in modern organizations, it suffers from the problem of being a bureaucratic exercise rather than a meaningful process of decision-making.
This means that the planning process becomes a routine, symbolic activity rather than a dynamic, strategic exercise that produces useful insights and effective strategies. As a result, the plan may become disconnected from the realities of the organization and its environment, leading to undesirable results. This not only wastes time, resources and energy, it can miss opportunities and risks that could have been identified and addressed through a more effective planning process. Therefore, it is important for organizations to ensure that the planning process is not reduced to mere ritual, but is a dynamic and strategic process that drives performance and success.
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Mahre, Incorporated, a New York corporation, runs ski tours in a several states. Mahre also has a New York retail store and an Internet store, which ships to out-of-state customers. Assume sales transactions in all states, except New York, are under 200 and that all states have adopted Wayfair legislation. The ski tours operate in Maine, New Hampshire, and Vermont, where Mahre has employees and owns and uses tangible personal property. Mahre has real property only in New York. Mahre has the following sales: Mahre Sales State Goods Services Total Alaska $ 23,214 $ 0 $ 23,214 Colorado 10,632 0 10,632 Maine 35,983 156,154 192,137 New Hampshire 26,801 325,557 352,358 New York 65,521 0 65,521 Vermont 42,062 277,631 319,693 Totals $ 204,213 $ 759,342 $ 963,555 Assume the following sales tax rates: Alaska (0 percent), Colorado (7.75 percent), Maine (8.5 percent), New Hampshire (0 percent), New York (8 percent), and Vermont (5 percent). How much sales and use tax must Mahre collect and remit
Answer: $11,228.31
Explanation:
Given the following data :
Sales data:
State - - - - - Goods - - - - - Service - - - - - Total
Alaska - - - $23,214 - - - - - - 0 - - - - - - - $23,214
Colorado - $10,632 - - - - - - 0 - - - - - - - $10,632
Maine - - - $35,983 - - - $156,154 - - - - $192,137
N/Hampshire $26,801 - - 325,557 - - - 352,358
New York - - - $65,521 - - - - 0 - - - - - - - 65,521
Vermont - - - - $42,062 - - $277,631 - - -$319,693
Totals - - - - - $204,213 - -$759,342 - -$963,555
The amount of sales tax Mahre should collect and remit :
Sum of (goods sold * sales and use tax) in each state
ALASKA:
Sales tax rate = 0%
Sales and use tax = 0
COLORADO:
Sales tax rate = 7.75%
Sales and use tax = (0.0775×$10632) = $823.98
MAINE:
Sales tax rate = 8.5%
Sales and use tax = (0.085×$35983) = $3059.55
New Hampshire:
Sales tax rate = 0%
Sales and use tax = (0×$26801) = $0
New york:
Sales tax rate = 8%
Sales and use tax = (0.08×$65521) =$5,241.68
Vermont :
Sales tax rate = 5%
Sales and use tax = (0.05×$42062) =$2103. 1
Total sum:
(0+$823.98+$3059.55+0+$5241.68+$2103.1)
= $11,228.31
Francisco leased equipment from Julio on December 31, 2021. The lease is a 10-year lease with annual payments of $159,000 due on December 31 of each year beginning December 31, 2021. The present value of the lease payments is $1,006,192. Francisco's incremental borrowing rate is 14% for this type of lease. The implicit rate of 12% is known by the lessee. What should be the balance in Francisco lease liability at December 31, 2022
Answer: $789855
Explanation:
Initial liability = $1,006,192
Less: Payment = $159,000
Liability = $847192
× Implicit rate 12%
Interest = 12% × $847192 = $101663
Then, reduced balance will be:
= Payment - Interest
= $159,000 - $101663
= $57337
Therefore, Francisco lease liability at December 31, 2022 will be:
= $847192 - $57337
= $789855
Marsha is 23 years old and single. She cannot be claimed as a dependent by another taxpayer. Marsha earned wages of $18,500 and had $1,500 of federal income tax withholding in tax year 2020. Marsha gave birth to Shelby on November 10, 2020. Marsha paid all the cost of keeping up a home and support for Shelby. Shelby and Marsha are U.S. citizens and have valid Social Security numbers. Marsha filed Single with no dependents on her 2019 tax return and received a $1,200 Economic Impact Payment in May 2020. 3. Marsha is not required to file a return, but should file a return to claim a refund of her federal income tax withholding. True False
Answer:
a. Marsha is required to file a tax return.
Explanation:
Since in the question it is mentioned that Marsha who is 23 years old and single she earned $18,500 wages and federal income tax of $1,500 also Shelby and Marsha are U.S citizens
So as per the given situation she needs to file a tax return
Hence, the correct option is a
And, the same is to be considered
is it worth being in the national honors society? , if so why?
I got invited to join national honors society but I decided not to do it because you're kinda expected to do a lot. It sounds stressful to constantly have to keep your grades high and fulfill the other requirements they set for you. It sounds hard to manage on top of everything else you may have going on in your life.
However, to some it may be worth it because it sets a great image for you especially if you plan on going to college. By keeping your grades high all year long you'll get benefits to college and are more likely to get accepted in wherever you want to go. It's up to you to decide if it's worth it or not.
00 For Market failures means that the market has not achieved its optimum production outcome. This means that it has not produced the correct quantity of goods and services. QUESTION 1 Conduct a research to any small business that is manufacturing goods in your community. Make an appointment to interview the owner for the purpose of collecting the information using the questionnaire below. 1.1 General information: ● Name of the firm / business Specify the type of goods or service ● ● Position of the person interviewed ● Date of the interview 1,2 Explain briefly the negative impact the following factors have in your business. (10) Lack of information: ● Price discrimination Immobility of factors of production with special reference to: Physical capital Structural changes ● ● (1) ● (1) (1) (1) [14] QUESTION 2: Interview 3-4 community members that reside near the business you have visited. 2.1 Ask them to name any TWO negative externalities and TWO positive externalities caused by the local business, (2 x 2) (4) 2.2 Request them to list any TWO characteristics of public goods. (2 x 1) (2) 2.3 Use the negative externality and positive externality graphs to explain the impact this business have to the society (10) [16]
The first step in researching a small business in your neighborhood is to find a suitable nearby manufacturing company.
Once you do, contact the manager or owner to arrange an interview. Gather general information during the interview, such as the name of the company or business, what types of products or services they provide, the interviewer's position, and the time and date of the interview.
Then, focus on the detrimental effects different situations can have on the company. Briefly describe the impact on business of informational gaps, price discrimination, immobility of production variables (with a focus on physical capital), and structural changes.
Interview three to four locals who live close to the establishment you just visited. Ask them to list two unfavorable and two beneficial externalities brought about by the neighborhood business. Ask them to add two properties of public goods to the list as well.
Finally, use the data from the interviews to create graphs showing the positive and negative externalities of business on society. These infographics will graphically describe the costs and benefits that the company's neighborhood has.
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deciding the objectives and to decide the resource marshalling in order to
realize the objectives
Organizations are known for their firm objectives. The act of deciding the objectives and to decide the resource marshalling in order to realize the objectives are said to be the focus of strategic and business planning.
The act of strategic and business planning?A business strategy often needs the information that are general, high level etc. A business plan or strategy must have a define objectives.
A tactic is often employed to know the ways which some products enter the market.
Resource marshalling is known as a strategic plan that is often long-term plan, and one that helps to known the right actions to support in terms of the mission and goals of the organization.
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An income statement compares: a) revenue and sales. b) sales and expenses. c) expenses and assets. d) assets and liabilities
The purpose of an income statement is to compare b) sales and expenses.
What is an income statement?An income statement is a financial statement that a company uses to find out how much profit they have made over the course of an operating period which is often a year.
The first entry into an income statement is sales. This can also be called service revenue for service providing companies. Expenses are then deducted from this revenue to find out the net income. This means that an income statement compares revenue / sales and expense.
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What factor has the biggest impact on a credit score?
Answer:
Probrably how often you've been in debt or how much money you owe to someone or how many loans you've taken
The competitive threat that outsiders will enter a market is weaker when
The competitive threat that outsiders will enter a market is weaker when the incumbents enjoy substantial cost advantages.
The competitive threat that outsiders will enter a market refers to the possibility that new firms will enter a market to compete against existing firms. It is the degree of competition in a market that is determined by the ability of other companies to enter the same market and offer similar goods or services at a lower cost.
There are certain factors that determine the competitive threat of outsiders, these are:Ease of Entry: When the cost of entering a market is low, the threat of new entrants is high and vice versa.Brand loyalty: In markets where consumers are more loyal to the existing brands, the competitive threat of new entrants is weaker.
Patents: In markets where incumbents hold many patents, the competitive threat of new entrants is weaker.Cost advantage: The competitive threat of outsiders is weaker when incumbents enjoy substantial cost advantages.Cost advantage is the answer to your question.
The competitive threat that outsiders will enter a market is weaker when incumbents enjoy substantial cost advantages.
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What is Social Security?
a) A private insurance system just for the elderly
b) A free insurance system
c) The amount of money someone has
d) None of the above
The purpose of taxes is to
a) Improve roads
b) Support government
C) Pay retirement benefits
d) All of the above
What might be required of a job candidate today that would not have been necessary 20 years ago?
A. a firm handshake
B. a self-guided video interview
C. a solid resume
D. relevant experience
20 years ago there was less technology available and candidates were not required to interview through a video, B. A self-guided video interview is required to get a job.
What is Interview?Interview is the screening process of a candidate to find out if he or she is suitable for the job or not. The candidate with the best skills, education and experience is selected and seated to the job.
Employee screening process includes tests and interview however due to technological advancements the interview is now turned virtual, most of the employers now required a self guided video interview.
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In a process used by Kane Company, conversion cost is incurred uniformly throughout the process. Material is added at the end of the process. Which of the following statements is true?
The True statement is that "Kane Company must calculate the unit cost of materials and the unit conversion cost separately." Option B
This is further explained below.
What is a conversion cost ?Generally, The manufacturing expenses that are incurred in the process of transforming raw materials into finished goods are referred to as conversion costs.
In cost accounting, the idea is used to determine the value of ending inventory, which is subsequently stated in the balance sheet. This value is then reflected in the financial statements.
The calculation of the unit cost of materials and the unit conversion cost separately will allow for the best overview of the manufacturing process
In conclusion, The assertion that "Kane Company must compute the unit cost of materials and the unit conversion cost separately" is one that is deserving of the label "true." Alternative B
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CQ
In a process used by Kane Company, conversion cost is incurred uniformly throughout the process.
Material is added at the end of the process. Which of the following statements is true?
a. Kane Company cannot use process costing and must use job-order costing.
b. Kane Company must calculate the unit cost of materials and the unit conversion cost
separately.�
c. Kane Company will report the cost of materials with the cost of the ending inventory.
d. Kane Company uses parallel processing.
Which of the following careers does NOT work with patients or the public?
A.
Social worker
B.
Laboratory technician
C.
Hair stylist
D.
Substance abuse counselor
Answer:
B. Laboratory technician
Explanation:
Laboratory technicians don't work with patients or the public.
Answer:
B.Laboratory technician
Explanation:
"A lab technician analyzes samples such as body fluids and chemicals. They assist scientists and medical personnel with tasks such as keeping records and conducting tests." They do not have patients, or work with the public, they work for them, to make scientific analises. Hope this help!!
Consider a monopolist that produces for two periods. The demand curves in both periods are qe = 1-pt for t = 1,2. The marginal costs are c in the first and and c-lg" in the second period. Here, I is a small and positive number. There is a discount factor of 8 between the periods.
1. Explain briefly how the monopolist's problem changes compared to a situation where the marginal cost is c in both periods.
2. Find the quantities q' and g? that the monopolist chooses in the two periods. Hint: Start by solving the monopolist's problem in the second period and then continue to the first period.
3. Derive the restriction on that ensures that the profit function is strictly concave
Answer:
In a situation where the marginal cost is c in both periods, the monopolist's problem does not change between the two periods. This means that the monopolist will face the same demand curve and marginal cost in both periods, and will therefore make the same quantity and price decisions in both periods. In contrast, when the marginal cost changes between the two periods, the monopolist's problem will change. In this case, the monopolist will have to consider how their quantity and price decisions in one period will affect their profit in the next period, due to the discount factor and the changing marginal cost.
To find the quantities q' and g? that the monopolist chooses in the two periods, we first need to solve the monopolist's problem in the second period. In the second period, the monopolist's profit can be expressed as:
π = (1 - p2)(c - lg") - c
The monopolist will choose the quantity q2 and price p2 that maximize this profit. Taking the first-order conditions, we get:
1 - p2 - c + lg" = 0
p2 = 1 - c + lg"
Substituting this value of p2 into the demand curve, we get:
q2 = 1 - (1 - c + lg") * 2
q2 = 2c - lg"
Next, we need to solve the monopolist's problem in the first period. In the first period, the monopolist's profit can be expressed as:
π = (1 - p1) * (c - 8 * (c - lg")) - c
The monopolist will choose the quantity q1 and price p1 that maximize this profit. Taking the first-order conditions, we get:
1 - p1 - c + 8 * (c - lg") = 0
p1 = 1 - c + 8 * (c - lg")
Substituting this value of p1 into the demand curve, we get:
q1 = 1 - (1 - c + 8 * (c - lg")) * 1
q1 = 9c - 8 * lg"
Therefore, the quantities that the monopolist chooses in the two periods are q1 = 9c - 8 * lg" and q2 = 2c - lg".
To derive the restriction on that ensures that the profit function is strictly concave
Producing at the level where marginal revenue and marginal cost are equal, or when MR = MC, is the decision that will maximize profits for the monopoly. The firm can increase profits by increasing output if the monopoly produces fewer goods because MR > MC at those output levels.
What is the monopolist's change in marginal revenue?With each additional unit sold in a monopoly, marginal revenue decreases and eventually reaches or falls below average revenue because the price fluctuates as the quantity sold fluctuates.
The marginal cost curves that monopolies encounter are comparable to those that perfectly competitive businesses experience. Since most businesses can take advantage of efficiency opportunities as they start to grow, they will typically have low marginal costs at low levels of production. As output rises, marginal costs rise as well.
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