Secure Cor is a home security provider. In the long run, Secure Cor can provide home...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Secure Cor is a home security provider. In the long run, Secure Cor can provide home security for 20,000 homes each month at a total cost of $600,000, home security for 30,000 homes at a total cost of $750,000, or home security for 40,000 homes at a total cost of $800,000. Use the purple points (diamond symbol) on this graph to plot points of the long-run average cost curve at outputs of 20,000, 30,000, and 40,000 homes. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. AVERAGE COST (Dollars per home per month) 50 0 10 30 HOMES SERVED (Thousands) 20 40 50 Average Cost Suppose that there are 40,000 households that purchase home security in this area. All of Secure Cor's potential rivals face the same long-run average cost curve. True or False: Because Secure Cor faces falling long-run average cost over the relevant output range, it would be inefficient for another firm to enter this home security market. O True O False Secure Cor is a home security provider. In the long run, Secure Cor can provide home security for 20,000 homes each month at a total cost of $600,000, home security for 30,000 homes at a total cost of $750,000, or home security for 40,000 homes at a total cost of $800,000. Use the purple points (diamond symbol) on this graph to plot points of the long-run average cost curve at outputs of 20,000, 30,000, and 40,000 homes. Note: Plot your points in the order in which you would like them connected. Line segments will connect the points automatically. AVERAGE COST (Dollars per home per month) 50 0 10 30 HOMES SERVED (Thousands) 20 40 50 Average Cost Suppose that there are 40,000 households that purchase home security in this area. All of Secure Cor's potential rivals face the same long-run average cost curve. True or False: Because Secure Cor faces falling long-run average cost over the relevant output range, it would be inefficient for another firm to enter this home security market. O True O False
Expert Answer:
Answer rating: 100% (QA)
There are three purple points plotted on the graph at 20000 30000 and 40000 homes served The curve c... View the full answer
Related Book For
Applied Regression Analysis and Other Multivariable Methods
ISBN: 978-1285051086
5th edition
Authors: David G. Kleinbaum, Lawrence L. Kupper, Azhar Nizam, Eli S. Rosenberg
Posted Date:
Students also viewed these finance questions
-
Use the data from March 1, 2023, to calculate the following forward rates implied by the yields on Treasuries. 1f2, 2f1, 2fs, sf2, 10f20
-
Adventure Rafting runs rafts on the Colorado River. It has eight rafts in its inventory. The demand for rafts during the busy months of June and July has been either 4, 5, 6, 7 or 8, with...
-
Refer to Table 10.1 in the text and look at the period from 1973 through 1978. a. Calculate the arithmetic average returns for common stocks and T-bills over this period. b. Calculate the standard...
-
Given the functions f(x) = 2x and g(x) = x 1) Find the points of intersection of the curves and plot the graphs of the functions. 2) Determine the area bounded by the curves in the interval [-1,3] 3)...
-
Given the information in the following table: a. Construct the network diagram. b. Find each activitys ES, EF, LS, and LF. c. Identify all paths. Which path is the critical path? d. Calculate the...
-
Study the following paragraphs. Then write an appropriate subject line and opening sentence for each one. My name is Rachel Rivera, and I am looking for a new computing device, and frankly I dont...
-
The following information was reported in the December 31, 2007, financial statements of Southwest Airlines, Inc. (listed alphabetically, amounts in millions). Accounts Payable $1,731 Accounts...
-
(Adjusting Entries and Financial Statements) Yount Advertising Agency was founded by Thomas Grant in January 2001. Presented below are both the adjusted and unadjusted trial balances as of December...
-
Illinois Company prepared the following bank reconciliation at May 3 1 :Balance per bankAdditions:$ 1 , 2 9 5 Deposits in transitCheck incorrectly charged to our bank balanceDeductions: 2 5 8 1 0 2...
-
Exhibit 4 in the case shows the average cost per passenger for British Airways. Classify the listed operating expenses per passenger as fixed or variable. (Note: Assume aircraft capacity is fixed....
-
Use MATLAB. Ground vibrations from a crane operation, a forging press, and an air compressor are trans- mitted to a nearby milling machine and are found to be detrimental to achieving specified...
-
Why does a growing stream of cash flows have a greater present value than a flat stream?
-
What is entrepreneurial alertness? Why is it important?
-
Jason Murphy is thinking about starting a firm in the fitness drinks industry. When asked by a potential investor if he had studied the industry, Jason replied, The fitness drink industry is so full...
-
Indicate whether the following expenditures are trade or business deductions ( \(\mathrm{T}\) ), production of income deductions (PI), personal deductions \((\mathrm{P})\), or are not deductible...
-
In what ways does an extensive social network provide an entrepreneur an advantage in recognizing business opportunities?
-
Andy Bailey recently graduated from the University of MF and is joining the Bank of MF as a financial analyst. He is assigned to conduct relative valuation to determine if the implied stock price per...
-
Clark, PA, has been engaged to perform the audit of Kent Ltd.s financial statements for the current year. Clark is about to commence auditing Kents employee pension expense. Her preliminary enquiries...
-
A study was conducted to assess the combined effects of patient attitude and patient physician communication on patient satisfaction with medical care during pregnancy. A random sample of 110...
-
Market research was conducted for a national retail company to compare the relationship between sales and advertising during the warm spring and summer seasons as compared with the cool fall and...
-
Use the computer output for the Business Week magazine data of Problem 13 in Chapter 8, as well as the additional output here, to answer the following questions. a. Perform the overall F test for the...
-
Consider three taxpayers who are in the following tax brackets: Alice 25% Brad 35% Camille 40%
-
The XYZ Partnership reports the following items during 2022: Calculate ordinary income (or loss) by completing page 1 of Form 1065, and complete Schedule K (Partners Shares of Income, Credits,...
-
Charles is a 60% partner in CD Partnership, a calendar year partnership. For 2023, Charles received a Schedule K-1 that reported his share of partnership items as follows: In addition, Charles and...
Study smarter with the SolutionInn App