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Ipatiy
16 days ago
12

Dumphy and Funke are rival tattoo artists in the small town of Feline. There are no other tattoo artists in town. It costs $30 t

o produce a Tweety Bird tattoo. Assume for simplicity that fixed costs are zero and that Dumphy and Funke perform identical work. For a while, there was too much demand for Funke and Dumphy to handle and they both charged $200 for a tatoo. But recently, demand has dropped significantly and there isn't enough work for both to fill their days at any price. However, there is some demand at all prices.a. What will be the equilabrium price that Dumphy and Funke will charge?b. What are the profits for Dumphy and Funke at the equilibrium price?c. What type of competition would Funke and Dumphy likely engage in after the decrease in demand?
Business
1 answer:
arsen [2.9K]16 days ago
5 0
For Part a, the equilibrium price that Dumphy and Funke will set is $30. In Part b, the profits for Dumphy and Funke at this equilibrium price amount to $0. Regarding Part c, both artists are expected to engage in price competition after experiencing a decline in demand. To clarify, the price each artist sets equals their marginal cost, thus establishing equilibrium at MC = $30.
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Where can I find the answer choices?
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Brooks Brothers bought a suit that has a list price of $1,219, with a chain discount of 7/4/2. What is the net price of the suit
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A chain discount structured as 7 / 4 / 2 indicates an initial discount of 7%, followed by a 4% discount, and finally a 2% discount.
Net Price = Original Price  x  Net Price Factor
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13 days ago
On December 31, 2019, Spearmint, Inc., issued $450,000 of 9 percent, 3-year bonds for cash of $461,795. After recording the rela
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Cash disbursement to clients: $450,000 multiplied by the contract rate of 9% times 1/2 equals $20,250. Amortization of the premium: $11,795 divided by 6 periods results in $1,966. Bond interest expense is calculated as: $20,250 minus $1,966 equals $18,284.
3 0
14 days ago
A proposed project has fixed costs of $39,480, depreciation expense of $8,724, and a sales quantity of 1,330 units. The total va
harina [3228]

Answer:

el margen de contribución por unidad del producto es $29.7

Explanation:

para calcular el costo fijo por unidad, debes dividir el costo fijo total por el número de unidades del producto. es decir, $39,480/1330 unidades = $29.7 por unidad

el costo variable por producto es $5,607/1330 unidades = $4.2 por unidad

el precio de venta = 33.9 es decir, costo fijo + costo variable

solución

precio de venta por unidad= 33.9

menos C.V. 4.2

margen de contribución 29.7

costo fijo por unidad 29.7

0

la cuenta está en el punto de equilibrio

6 0
27 days ago
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Option 3 is the correct choice.

Explanation:

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The other options presented do not correspond with the specified scenario. Thus, Option 3 is the superior selection.

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1 month ago
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