average cost minimization, giant screen TV Inc, San Diego

Answers

Answer 1

Note that at the average cost-minimizing level of output, the company is operating at a loss of approximately $9.26 million.

What is Average Cost Minimization?

Average cost minimization is the process of finding the level of output that minimizes the average cost of production, which maximizes a firm's profits.

To determine the average cost-minimizing level of output, we need to find the quantity at which average cost (AC) is at its minimum. This occurs when marginal cost (MC) equals average cost (AC). So we set MC = AC:

MC = AC

$800 + $0.008Q = TC/Q

$800 + $0.008Q = ($12,100,000 + $800Q + $0.004Q)/Q

$800Q + $0.008Q² = $12,100,000 + $800Q + $0.004Q

$0.008Q^2 = $12,100,000 + $0.196Q

$0.008Q^2 - $0.196Q - $12,100,000 = 0

Solving for Q using the quadratic formula, we get:

Q = (-(-0.196) ± √((-0.196)² - 4(0.008)(-12,100,000))) / (2(0.008))

Q ≈ 2,969

Therefore, the average cost-minimizing level of output is approximately 2,969 units.

To find MC at this level of output, we plug in Q = 2,969 into the MC equation:

MC = $800 + $0.008Q

MC = $800 + $0.008(2,969)

MC ≈ $824

To find AC at this level of output, we plug in Q = 2,969 into the TC and Q equations:

TC = $12,100,000 + $800Q + $0.004Q²

TC = $12,100,000 + $800(2,969) + $0.004(2,969)²

TC ≈ $14,502,096

AC = TC/Q

AC = $14,502,096/2,969

AC ≈ $4,885.44

To find P at this level of output, we plug in Q = 2,969 into the MR equation and set it equal to the price (P) that consumers are willing to pay:

MR = $1,800 - $0.012Q

MR = $1,800 - $0.012(2,969)

MR ≈ $1,764.52

P = MR

P ≈ $1,764.52

Finally, to find profit (π) at this level of output, we subtract total cost (TC) from total revenue (TR):

TR = P × Q

TR = $1,764.52 × 2,969

TR ≈ $5,239,895.88

π = TR - TC

π ≈ $5,239,895.88 - $14,502,096

π ≈ -$9,262,200.12

Therefore, at the average cost-minimizing level of output, the company is operating at a loss of approximately $9.26 million.

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Full Question:

Although part of your question is missing, you might be referring to this full question:

Average Cost Minimization. Giant Screen TV, Inc., is a San Diego-based importer anddistributor of 60-inch screen, high-resolution televisions for individual and commercial customers. Revenue and cost relations are as follows:

TR = $1,800Q - $0.006

MR = ∆TR/∆Q = $1,800 - $0.012Q

TC = $12,100,000 + $800Q + $0.004

MC = ∆TC/∆Q = $800 + $0.008Q

A. Calculate output (Q), marginal cost (MC), average cost (AC), price (P), and profit (π) atthe average cost-minimizing activity level.

Related Questions

fill in the blank. by threatening trade sanctions, one country can convince another country to open its markets.

Answers

Answer:punitive

Explanation:

fill in the blank. ____ is recommended for promotion when a high degree of service or support, known as ancillary services, is required after the sale of the product.

Answers

Customer service is recommended for promotion when a high degree of service or support, known as ancillary services, is required after the sale of the product.

Providing good customer service is an important part of ensuring customer satisfaction and helps to promote a positive image of the business.

By taking extra steps to ensure a positive customer experience after the sale, businesses can encourage future sales. The word "solution" is recommended for promotion when a high degree of service or support, known as ancillary services, is required after the sale of the product. The solution is an ideal word to use in situations where customers expect more than just the sale of a product. Customers desire personalized assistance with every aspect of their purchase, including maintenance, support, and warranties

Ancillary services refer to all of the services offered to customers following the sale of the product or service. This is especially true in situations where goods or services require ongoing support, technical assistance, or maintenance. Customers expect ancillary services to provide assistance with problem resolution, help with installation, and training when necessary.

Here are some examples of ancillary services: Warranties Technical support after sales Repairs and maintenance Assistance with the installation of new products Personalized training programs for staff Software updates and technical assistance for software products, etc.

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What structural changes must an organization undertake to switch from a product to a customer orientation? Should companies start investing in such structural changes

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Answer:

To switch from a product to a customer orientation, companies must undertake structural changes that align with their new focus on customer management. Companies should invest in process harmonization, standardization, and formal IT-enabled workflows to make cross-functional and cross-unit coordination easier. Additionally, companies must adapt their organizational structure, goals, purpose, strategy, mission, and employee performance to align with the new customer orientation

Explanation:

Companies should consider the following structural changes:

Structural change: Companies must adapt their organizational structure to align with the new customer orientation. This includes changing the organization's hierarchy, chain of command, management systems, job structure, and administrative procedures.

Strategic change: Companies must make changes to the overall goals, purpose, strategy, or mission of the organization. This involves changing what products or services the company offers, the target customer segments or markets the company tries to reach, how the company distributes its products or services, its position in the global economy, and who it will partner with for manufacturers, distributors, and other logistical needs.

People changes: Companies must improve employee performance, skills, attitudes, behaviour, and loyalty to the organization, as well as enhance manager-subordinate relationships, group cohesion, and employee sense of achievement. This involves replacing all of the top-level managers in hopes of creating a new organizational culture, or small-scale changes such as working to change employee attitudes through things such as team building or other behavioral activities.

Process change: Companies must improve the overall workflow efficiency and productivity within an organization. This involves making changes to an organization's production operations, such as how it produces its products, how it delivers its services or how it handles everyday business practices.

A U.S. company that has sold its product to a German firm would be exposed to a net exchange gain on the unpaid receivable if the
a.
amount to be paid was denominated in dollars.
b.
dollar weakened relative to the Euro and the Euro was the denominated currency.
c.
dollar strengthened relative to the Euro and the Euro was the denominated currency.
d.
U.S. company purchased a forward contract to buy Euros.

Answers

A U.S. company that has sold its product to a German firm would be exposed to a net exchange gain on the unpaid receivable if the dollar weakened relative to the Euro and the Euro was the denominated currency. So option B is the answer.

The amount owed to a company for goods or services that have been sold but not yet paid for is known as receivable. For example, a business that supplies goods to a customer on credit has a receivable. The term "denominated currency" refers to the currency in which an asset, liability, or transaction is stated. The term is used to refer to bonds, loans, and other fixed-income investments, as well as foreign exchange transactions, which are typically denominated in the currency of the country where the company or government that issued the bond or loan is headquartered.

In this scenario, if the Euro was the denominated currency, and the dollar weakened relative to the Euro, a US company that sold its product to a German firm would be exposed to a net exchange gain on the unpaid receivable. So option B is the answer.

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"When the price of a good falls, consumers may increase the quantity consumed because they have greater total purchasing power."
Which of the following does this statement describe?
a. Substitution effect
b. Income effect
c. Consumer equilibrium effect
d. Price effect

Answers

When the price of a good falls, consumers may increase the quantity consumed because they have greater total purchasing power. This statement describes the income effect. Option b is the correct choice.

The income effect is defined as the change in an individual's or economy's quantity demanded of a good or service due to a change in their purchasing power caused by a change in real income. When the price of a good decreases, the consumer's purchasing power increases, resulting in an increase in their real income.

As a result, they can purchase more goods or services than before. This effect is known as the income effect because the price decrease increases the consumer's real income and leads to a change in the amount of goods and services they can purchase.

The income effect can have a positive or negative impact on the quantity of a good demanded, depending on the type of good. Normal goods, for example, are items for which demand rises as income rises, whereas inferior goods are items for which demand decreases as income rises. When the price of a normal good falls, the income effect of the lower price would cause the consumer's purchasing power to rise, allowing them to buy more of the good.

As a result, the quantity of the good demanded increases. Conversely, for inferior goods, when the price falls, the income effect of the lower price would result in the consumer's purchasing power increasing, allowing them to purchase more of the good; however, since it is an inferior good, the consumer would instead opt for a superior substitute, reducing the quantity of the inferior good demanded.

Therefore, the income effect has a significant impact on a consumer's buying decision.

So, option b is right choice.

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Which of the following are reasons why it is more difficult to value common stock than it is to value bonds? -The rate of return required by the market is not easily observed.

Answers

It is more challenging to evaluate common stock than it is to value bonds since it is harder to see the rate of return demanded by the market. Option 1 is Correct.

For various reasons, including the absence of set cash flows, uncertainty, lack of a maturity date, market volatility, and market expectations, valuing common stock is seen to be more challenging than valuing bonds.

These elements make figuring out the fair value of a common stock—which is the present value of future cash flows from common stock—more challenging. Contrarily, bond valuations are frequently based on a known coupon rate and maturity date, making it simpler to calculate the present value of future bond cash flows. Option 1 is Correct.

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Correct Question:

Which of the following are reasons why it is more difficult to value common stock than it is to value bonds? multiple select question.

1. the rate of return required by the market is not easily observed.

2. the life of a common stock is essentially forever.

3. all bond and stock cash flows are guaranteed to be paid.

4. common stock cash flows are not known in advance.

38. Which of the following procedures most likely would give the greatest assurance that securities held as investments are safeguarded?
A. There is no access to securities between the year-end and the date of the auditor's security count.
B. Proceeds from the sale of investments are received by an employee who does not have access to
securities.
C. Investment acquisitions are authorized by a member of the Board of Directors before execution.
D. Access to securities requires the presence of two designated officials.

Answers

The procedure that would most likely give the greatest assurance that securities held as investments are safeguarded is D. Access to securities requires the presence of two designated officials.

The company's responsibility is to protect and secure its investment and securities. Therefore, safeguarding the investment is a priority of the company. Securities held as investments require the use of control procedures to protect them. Such measures should not only protect investments from theft or loss but should also ensure that they are not subject to illegal transactions. Access to securities requires the presence of two designated officials. This procedure will ensure that no unauthorized person has access to the securities held as investments.

The procedure of having two designated officials should cover the holding area and the securities in the investment record. Thus, it will give the greatest assurance that securities held as investments are safeguarded. Access to securities held as investments should be protected by employing certain control procedures. These procedures include the requirement of two designated officials.

This ensures that no unauthorized person can access the securities held as investments. It also protects the securities from theft, fraud, or any other illegal transactions. Access to securities requires the presence of two designated officials, which is the procedure that would most likely give the greatest assurance that securities held as investments are safeguarded. Therefore the correct option is D.

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In the figure, curves A-D depict per capita rate increases (r). Which of the following best explains the difference between the shapes of these curves? Marked individuals have the same probability of being recaptured as unmarked individuals during the recapture phase.

Answers

The population growth rate within each curve steepens over time, as the growth rate depends on both the per capita growth rate and the current population size.

In exponential growth, the rate of population growth per capita (per capita) remains the same regardless of population size, and population grows more rapidly as size increases.

In nature, populations can grow exponentially for some time, but are ultimately limited by resource availability.

In logistic growth, the per capita growth rate of the population becomes smaller and smaller as the population size approaches the maximum imposed by the limited resources in the environment, known as carrying capacity.

Exponential growth produces a J-shaped curve, while logistic growth produces an S-shaped curve.

Bacteria grown in the laboratory are an excellent example of exponential growth. In exponential growth, the rate of population growth increases over time in proportion to the size of the population.

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Complete question:

In the figure, curves A-D depict per capita rate increases (r). Which of the following best explains the difference between the shapes of these curves?

FILL IN THE BLANK Purchase ________ and allowances are accounted for with a credit to Inventory and a debit to Cash or Accounts Payable.

Answers

In the following question, in the missing blank, Purchase "discounts" and allowances are accounted for with a credit to Inventory and a debit to Cash or Accounts Payable.

A purchase discount is a reduction in the price of an item or service that a customer is allowed to receive if payment is made within a certain period of time. For example, if a customer receives a 2% discount on the purchase price if payment is made within ten days, this is known as a "2/10 net 30" term, which means that payment is due within thirty days, but a 2% discount will be given if payment is made within ten days. This will enable the customer to save money on the purchase.

in the missing blank, Purchase "discounts" and allowances are accounted for with a credit to Inventory and a debit to Cash or Accounts Payable.

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fill in the blank. ___ refers to highly cultivated customers who are likely to follow through on an intended purchase, buy the product repeatedly, and recommend it to others.

Answers

Qualified refers to highly cultivated customers who are likely to follow through on an intended purchase, buy the product repeatedly, and recommend it to others.

Customer cultivation is the process of engaging with customers at various stages of their relationship with your company to promote customer loyalty, retention, and brand advocacy. The goal of customer cultivation is to build long-term customer relationships by engaging with them beyond the initial sale.

Qualified customers are people who have expressed an interest in your product or service, have demonstrated a willingness to learn more about it, and have provided their contact information as a result. These are individuals who are most likely to follow through on an intended purchase, purchase the product repeatedly, and refer it to others.

Customer loyalty is the likelihood of a customer purchasing goods or services from the same brand again and again. It is the outcome of a positive customer experience, and it contributes significantly to the financial success of a business.

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Here are four statements about the types of unemployment. Which of these statements is correct? 1. An unemployed graduate searching for a first job is an example of frictional unemployment. This type of unemployment arises from normal labor turnover 2. An unemployed textile worker in South Carolina who loses her job because of competition from China is an example of structural unemployment. This type of unemployment arises when changes in technology or international competition change the skills needed to perform je 3. An unemployed textile worker in South Carolina who loses her job because of competition from China is an example of cyclical unemployment. This type of unemployment arises in recessions 4. An autoworker who loses his job because of a slowdown in the economy is an example of structural unemployment. This type of unemployment arises in recessions. O A. Statements 1 and 2 are true, the others are false. OB. Statements 2 and 3 are true O C. Only statement 1 is true D. All four statements are true E. Only statement 2 is true

Answers

A. Statements 1 and 2 are true, the others are false statements about the types of unemployment.

The correct statement is that 1. An unemployed graduate searching for a first job is an example of frictional unemployment. This type of unemployment arises from normal labor turnover and 2. An unemployed textile worker in South Carolina who loses her job because of competition from China is an example of structural unemployment. This type of unemployment arises when changes in technology or international competition change the skills needed to perform.

Frictional unemployment refers to the temporary unemployment of a person who is moving from one occupation to another. It occurs as a result of the time required to match employee qualifications and job requirements. For instance, an unemployed college graduate who is looking for a first job would be a good example of frictional unemployment. This kind of unemployment is common and normally short-term.

The other kinds of unemployment include cyclical unemployment, structural unemployment, and seasonal unemployment. The statement "An unemployed textile worker in South Carolina who loses her job because of competition from China is an example of structural unemployment. This type of unemployment arises when changes in technology or international competition change the skills needed to perform" refers to structural unemployment. This type of unemployment is caused by changes in the economy's structure.

Thus, Statement 2 is correct. In a recession, when production and demand decrease, it can result in increased unemployment. This type of unemployment is referred to as cyclical unemployment. Thus, Statement 3 is incorrect. The statement "An autoworker who loses his job because of a slowdown in the economy is an example of structural unemployment. This type of unemployment arises in recessions" is incorrect.

When recessions occur, the unemployment rate often rises, resulting in a significant number of layoffs. This kind of unemployment is referred to as cyclical unemployment. Thus, Statement 4 is incorrect. Therefore, the Correct option is A. Statements 1 and 2 are true, the others are false.

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a market shortage results from an excess of quantity over quantity at a given price. (insert one word in each blank.)

Answers

A surplus of quantity demanded leads to a shortfall.

How would you define shortage?

A shortage occurs when there is an imbalance between supply and demand for a good or service. The economy is considered to be in a condition of disequilibrium when this happens. This circumstance often only lasts a short while before the product is supplied and the market returns to normal. In terms of economics, a shortfall or excess demand occurs when the demand for a good or service in a market outweighs the supply. It is the antithesis of an abundance of something.

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Consider the following disease scenarios, and determine the correct mode of transmission for each by dragging the labels to the appropriate description.
- Syphillis from unprotected sex
- Lyme disease
- Salmonellosis from egg salad at a picnic
- Chickenpox from one child coughing on another
- Hepatitis B from needle sharing
- MRSA

Answers

We can see here the disease scenarios, and their correct mode of transmission:

Syphilis from unprotected sex: Sexual transmissionLyme disease: Vector-borne transmission (tick bite)Salmonellosis from egg salad at a picnic: Foodborne transmissionChickenpox from one child coughing on another: Airborne transmissionHepatitis B from needle sharing: Parenteral transmission (through blood or bodily fluids)MRSA: Direct contact transmission (skin-to-skin contact or contact with contaminated objects)

What is a disease?

A disease is a particular abnormal condition that affects the body or mind of an organism, often characterized by specific symptoms and signs. It can be caused by various factors such as infections, genetic mutations, lifestyle choices, environmental factors, or a combination of these factors.

Diseases can range from minor ailments such as a common cold to more serious and life-threatening conditions such as cancer or heart disease.

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Terry is the leader of a team with a job to do. When the team meets, Terry takes a vote of all team members to decide who will
do what task to complete the job. What style of leadership is Terry using?
a. Democratic
O b. Autocratic
O c. Laissez-Faire
O d. Behavioral

Answers

It would be A) democratic

Answer is A. Democratic

Complete the below table to calculate the price of a $1.5 million bond issue under each of the following independent assumptions (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.Enter your answers in whole dollars.):
1. Maturity 15 years, interest paid annually, stated rate 10%, market rate 12%
Table values are based on:
n= i= Cash Flow Amount Present Value
Interest Principal Price of bonds 2. Maturity 6 years, interest paid semiannually, stated rate 14%, market rate 16%
Table values are based on:
n= i= Cash Flow Amount Present Value
Interest Principal Price of Bonds 3. Maturity 5 years, interest paid semiannually, stated rate 16%, market rate 14%
Table values are based on:
n= i= Cash Flow Amount Present Value
Interest Principal Price of bonds 4. Maturity 20 years, interest paid semiannually, stated rate 14%, market rate 16%
Table values are based on:
n= i= Cash Flow Amount Present Value
Interest Principal Price of Bonds 5. Maturity 20 years, interest paid semiannually, stated rate 14%, market rate 14%
Table values are based on:
n= i= Cash Flow Amount Present Value
Interest Principal Price of bonds

Answers

Maturity 15 years, interest paid annually, stated rate 10%, market rate 12%, Price of bonds = $1,130,863Maturity 6 years, interest paid semiannually, stated rate 14%, market rate 16%. Price of bonds = $816,059Maturity 5 years, interest paid semiannually, stated rate 16%, market rate 14%. Price of bonds = $1,120,893Maturity 20 years, interest paid semiannually, stated rate 14%, market rate 16%. Price of bonds = $685,601Maturity 20 years, interest paid semiannually, stated rate 14%, market rate 14%. Price of bonds = $1,000,000

An explanation for 1st: To calculate the price of the bond, we need to use the present value of the interest and principal payments discounted at the market rate of 12%. Using the PV of $1 table, we can calculate the present value factors for the interest and principal payments. Multiplying these factors by the corresponding cash flows and summing them up gives us the price of the bonds, which is $1,130,863.

An explanation for 2nd: To calculate the price of the bond, we need to use the present value of the interest and principal payments discounted at the market rate of 16%, which is the semiannual equivalent of the annual rate of 14%. Using the PV of $1 table, we can calculate the present value factors for the interest and principal payments. Multiplying these factors by the corresponding cash flows and summing them up gives us the price of the bonds, which is $816,059.

An explanation for 3rd: To calculate the price of the bond, we need to use the present value of the interest and principal payments discounted at the market rate of 14%, which is the semiannual equivalent of the annual rate of 16%. Using the PV of $1 table, we can calculate the present value factors for the interest and principal payments. Multiplying these factors with the corresponding cash flows and summing them up gives us the price of the bonds, which is $1,120,893.

An explanation for 4th: To calculate the price of the bond, we need to use the present value of the interest and principal payments discounted at the market rate of 16%, which is the semiannual equivalent of the annual rate of 14%. Using the PV of $1 table, we can calculate the present value factors for the interest and principal payments. Multiplying these factors by the corresponding cash flows and summing them up gives us the price of the bonds, which is $685,601.

An explanation for 5th: When the stated rate is equal to the market rate, the price of the bond is equal to its face value, which is $1,000,000 in this case. The present value factors for the interest and principal payments are both equal to 1, so we don't need to use the PV tables to calculate the price of the bonds.

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Complete Question:

Complete the following to calculate the price of a $1.5 million bond issue under each of the following independent assumptions (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.Enter your answers in whole dollars.):

1. Maturity 15 years, interest paid annually, stated rate 10%, market rate 12%

Table values are based on: