Youre thinking of buying one of two firms. One has a profit margin of $8 per unit;

Question:

You’re thinking of buying one of two firms. One has a profit margin of $8 per unit; the other has a profit margin of $4 per unit. Which should you buy? Why?

(Difficult)

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Microeconomics

ISBN: 9781260507140

11th Edition

Authors: David Colander

See More Books

Question Posted: Mar 14, 2024 04:01 AM

See More Questions

1. How strong are the competitive forces confronting J. Crew in the market for specialty retail? Do a [Michael Porter] five-forces analysis to support your answer. (see chapter 3 in the textfor...
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
Find the derivative of the vector function r(t) = e^t^2 i-j + In(1+3t)k.
The phase diagram for CO2 is shown in FIGURE 17-38. (a) What is the phase of CO2 at T = 20 C and P = 500 kPa? (b) What is the phase of CO2 at T = -80 C and P = 120 kPa? (c) For reasons of economy and...
A box is being dragged across the floor at a constant speed by a rope pulling horizontally on it. Friction is not negligible. Describe a situation. For each problem, identify all the forces acting on...
Purina entered in a contract with the defendant to sell the defendant piglets, known as weanlingsbaby pigs that have been weaned. It is uncontested that the buyer breached and that Purina is entitled...
The ledger of Elburn Company at the end of the current year shows Accounts Receivable $110,000, Sales Revenue $840,000, and Sales Returns and Allowances $28,000. Instructions (a) If Elburn uses the...
(Parent reference for BST) Revise TreeNode by adding a reference to a nodes parent, as shown below: BinaryTree.TreeNode #element: T #left: TreeNode #right: TreeNode #*parent: TreeNode Create a test...
A perfectly competitive firm sells its good for $20. If marginal cost is four times the quantity produced, how much does the firm produce? Why? (Difficult)
If the conditions for perfect competition are generally not met, why do economists use the model?
Nelson operates 300 days per year. In the past, demand for its product has been fairly steady at 50 units per day. Recently however, customer orders have been inconsistent, ranging from 25 to 150...
Schneider's Plumbing and Heating, located in Fargo, North Dakota, has 300 accounts receivable distributed as follows: An auditor is coming to inspect Schneider's financial records. Included in the...
The firm with this demand curve shown in Figure 4 would receive the highest total revenue at point ______. a) A b) B c) C d) D e) E Figure 4 Price B C D E Quantity
A computer manufacturing firm produces three product lines: (1) desktop computer systems, (2) notebook computers, and (3) subnotebook computers. The sales department has convened its monthly meeting...
Usury laws tend to __________-. a) create a shortage of loanable funds b) create a surplus of loanable funds c) make it easier to obtain credit d) have no effect on the amount of loanable funds...
If price were lowered from $50 to $43 and quantity demanded rose from 15 to 16, calculate elasticity; state whether demand is elastic, unit elastic, or inelastic; and find how much total revenue was...
The magnitude of the repulsive force between two point charges with the same sign, one of size 1 and the other of size q, is F = q/40r2 where is the distance between the charges and 0 is a constant....
Tanaka Company's cost and production data for two recent months included the following: March April Production (units).........300................600 Rent.....................$1,800............$1,800...
Which industries and occupations have the highest rates of unionization? Which the lowest? Speculate on the reasons for such large differences.
Suppose that you are president of a newly established local union about to bargain with an employer for the first time. List the basic areas you want covered in the work agreement. Why might you...
How does the economists use of the term rent differ from everyday usage? Explain: Though rent need not be paid by society to make land available, rental payments are very useful in guiding land into...
Periodic and Perpetual Systems Calculating Ending Inventory and Cost of Sales Using Average Cost ( Moving Average ) , FIFO, and LIFO Undew Inc. s inventory records showed the following data for an...
Throughout the calendar year 2 0 2 3 , Swifty Corporation has 4 2 2 , 0 0 0 common shares outstanding ( no preferred shares issued ) . In addition, Swifty has 7 , 2 0 0 , 2 0 - year, 9 % bonds...
Consider the following credit card activity for the month of August: Date Balance Number of Days August 1 $ 2 8 1 6 August 7 $ 3 9 8 7 August 1 4 $ 4 7 4 8 August 2 2 $ 5 7 2 1 0 Compute the ADB....

Youre thinking of buying one of two firms. One has a profit margin of $8 per unit;

Question:

Step by Step Answer:

Based on profit margin alone you should buy the firm with a profit margin of 8 per unit This is beca...View the full answer

Microeconomics

Students also viewed these Business questions