Answered: In the long run, which plan has the…

In the long run, which plan has the higher payout? Plan A Payout P(Payout) −$35,000 0.57 $30,000 0.07 $65,000 0.36 Plan B Payout P(Payout) −$35,000 0.17 −$20,000 0.49 $90,000 0.34

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter5: Investment Decisions: Look Ahead And Reason Back

Section: Chapter Questions

Problem 5.6IP

See similar textbooks

Related questions

Q: Suppose the price of movies seen at a theatre rises from Rs. 120 per person to Rs. 200 per person.…

A: Price elasticity of demand measures the responsiveness of quantity demanded to changes in the price…

Q: True/False Marginal cost is the addition to the total cost when more unit of output is being…

A: In economics, cost is the value of the resources (such as labor, materials, and capital) used to…

Q: Revenue from product X is $11,000, variable costs are $7,000, and allocated fixed costs are $6,000.…

A: Total revenue is the total value of the commodities produced and sold in equilibrium. Economic costs…

Q: How much would Software C cost you in the long run? $[?] Not Satisfied $5,000 Software C 20% •…

A: The cost of software C initially is $5000 And the not satisfied percentage is 20% which values…

Q: Fill in the blanks in the table below. The problem is a "puzzle" so the blanks are not necessarily…

A: Total cost is the sum of fixed cost and variable cost.=> TC = FC + VC Fixed cost is the cost that…

Q: Which software should you purchase in order to save money in the long run, X or M? Not Satisfied…

A: Given:- Two Softwares X and M with their values being $6000 and $12000. To determine:- which…

Q: The first costs of an equipment is P 65,000 and a salvage value of P 3,000 at the end of its 6- year…

A: First cost of the equipment (FC) =P65000 Salvage value (S) =P 3000 Useful life (n) =6 years r=10% We…

Q: show solution

A: The cost is the expenditure that is incurred in the production of goods and services. The cost is…

Q: BPO Services is in the business of digitizing information from forms that are filled out by hand. In…

A: Below is the calculation of the expected cost of digitizing the form: Expected cost of digitizing…

Q: show solution

A: Total cost refers to all costs associated with the production of goods and services. Total costs are…

Q: A hair salon has very loyal customers and faces a weekly demand for blowouts equal to qD = 1,040 –…

A: Answer to the sub parts (g), (h) and (i) are as follows :

Q: In 5 years, P 180,000 is needed for a building renovation. In order to generate this amount, a…

A: Answer: (d) P39,195

Q: Carter wants to save up some money and decided to sell lemonade. He wants to figure out what's the…

A: A person start a business to earn profit. The main purpose of a firm is to maximize its profit. The…

Q: Implicit Cost Explicit Cost The rental income Raphael could receive if he chose to rent out his…

A: Implicit coast are also called non expenditure cost Because it is cost of self owned and self…

Q: The Net Profit Margin Formula The net profit margin formula may appear daunting but is in fact very…

A: The amount of net income or profit earned as a percentage of revenue is expressed as the net profit…

Q: If explicit cost is $300, implicit cost Is $220 and total revenue is $700 Find Economic profit

A: The information being given is:- Explicit cost = $300 Implicit cost = $220 Total revenue = $700 We…

Q: Angie's Bake Shop makes birthday chocolate chip cookies that cost $2 each. Angie expects that 10% of…

A: Price per cookie can be calculated by using the following formula.

Q: c. Now suppose that the monopolist can perfectly price discriminate. What quantity will it produce?…

A: Perfect price discrimination monopolist produces such quantity where price equals marginal cost and…

Q: When average cost decreases as output increases, Group of answer choices marginal cost is below…

A: The economies of scale curve is a long-run average cost curve since it permits all variables of…

Q: amount of money be deposited now at 4% interest will provide perpetual payment of P which will start…

A: Perpetual payment refers to payment which is made for infinite number of periods. Answer :(a)

Q: TransTech sells its product for $150. Marginal cost is a constant $135 per unit and fixed costs are…

A: Break Even Point: For a firm the breakeven point is the point at which it is neither earning profits…

Q: The profit of a firm during the financial year is $1200 and cost incurred is $600. Find the…

A: Mark-up (over cost) = (Profit / Cost) x 100%

Q: Two electric motors A andB has the following informations: Motor A Motor B First Cost P8,400 P12,500…

A: The present worth of a quantity of money, or a stream of income, to be received at a certain future…

Q: The first costs of an equipment is P 65,000 and a salvage value of P 3,000 at the end of its 6- year…

A: Cost of equipment = 65000 P Salvage value = 3000 Time = 6 years

Q: who is responsible for executing the budgetand plansdrawn up for a firm

A: In corporate enterprises, budgeting is a collaborative endeavour involving individuals from all…

Q: Number of Consumers Who Try the Product 10 million 10 million Number of Repeat Customers Profit per…

A: Advertisement costs refer to the costs incurred by a firm in spreading awareness about the commodity…

Q: If average cost is incresing as output expands, a marginal cost equals average cost b marginal…

A: The average cost is an important concept in economics and business because it helps firms determine…

Q: Many people believe that businesses that commit fraud cannot last long because (a) the government…

A: Businesses engage in the production and distribution of their goods and services to earn profit.…

Q: A company produces and sells a consumer product and is able to control the demand for the product by…

A: p=$200-0.05D Now,Total Revenue for the company TR=PD=$200-0.05D Now,Marginal Revenue for the company…

Q: Determine the number of periods n would it take for a uniform payment series in an account that…

A: Uniform Series Compound-Amount Factor” is given by the following formula: FA=1+in -1i where F=Future…

Q: A market is described by these equations: Demand: Q = 1300 - 4P Supply: P = 100 +.5Q Calculate…

A: Note: You have uploaded a question with multiple sub parts. Therefore, we have solved the first…

Q: An engineer bought an equipment for P 500,000. Other expenses including installations amounted to P…

A: Given Cost of equipment =P500,000 Installation cost =P30,000 Salvage value at the end of 10 years =…

Q: Action No Recycling Recycling Chemical Lab (Dollars) 2,400 2,100 Profit Water Park (Dollars) 1,100…

A: The economic effects of environmental policies are the focus of environmental economics. When we…

Q: (a) How would one estimate the full cost to an airline if one of its planes is held over for 24…

A: (a) Full cost : The complete cost associated with a particular event or activity , taking…

Q: A certain annuity pays P 80 at the end of every 3 months. If the present value of the annuity P1200…

A: Given:- Annuity pays=P 80 Present value=P 1200 Future amount=P 2000 To calculate:- Nominal interest…

Q: AC and AVC can intersect each other. True/False

A: Average cost and average variable cost are both the average values of total cost and total variable…

Q: When total revenue is $4000, explicit cost is $700, and implicit cost is $500, then calculate the…

A: The sum of your recurring (MRR) and non-recurring revenue sources is your total revenue, commonly…

Question

In the long run, which plan has the higher payout?

Plan A

Payout	P(Payout)
−$35,000	0.57
$30,000	0.07
$65,000	0.36

Plan B

Payout	P(Payout)
−$35,000	0.17
−$20,000	0.49
$90,000	0.34

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Strictly No AI use
A change in the number of hotel rooms that Caesars has would cause? a/an change in? Caesars' total variable costs. proportional A. Indirect B. Inverse C. Direct D. None of the above
Please answer the table and the questions below.
Q57
O all of the above A good idea when delaing with a company you've never heard of before would be to * O study its advertising or other marketing materials carefully expect that it will confirm to teh same standards of reliability as companies you do know O recognize that new companies come along all the time check it's reputation through family, friends, or agencies such as Better Business Bureau A wise plan for budgeting your money is to * 1pc avoid writing a budget down because it will change O allow no money for entertainment or recreation O plan to save a given percentage of your income first buy things that you want first so that you can afford them
x Homework (Ch X ng.cengage.com/static/nb/ui/evo/index.html?deploymentid=58830011095382489666091140&eISBN=97813... A McAfee A Linear equations cal... Sy Matrix Calculator watch Lenovo Support L Lenovo CENGAGE | MINDTAP Homework (Ch 07) Felix's only variable cost. Felix has a fixed cost of $80 per day and pays each of his workers $120 per day. Felix's total output schedule and total cost at each level of labor are presented in the following table. Labor Input (Number of Workers) 1 Fill in the blanks to complete the Marginal Product column for each worker and the Marginal Cost column at each level of labor. (Hint: Marginal cost is the change in total cost divided by the change in the quantity of output. You can calculate it here by dividing the increase in total cost from hiring one more worker by the marginal product from hiring one more worker.) NMT 5 2 3 + # 3 MindTap - Ceng X F3 E F4 Ş 4 When hiring the first and second workers, Felix's Burrito Stand faces Total Output (Burritos per…
when samsung reallocates its resources to produce 3.75 million tablets instead of 2 million tablets the opporunity cost a. 1.75 million tablet b 1.75 million phone c. 7 million phone d.7 million tablet
Bill's Bakery has a fire and Bill loses some of his cost data. The bits of paper that he recovers after the fire provide the information in the following table (all the cost numbers are dollars). TP 10 20 30 40 50 AFC 120 A 40 30 24 AVC $60, $90, $100, $130, and $140. $20, $50, $200, $60, and $130. $80, $160, $40, $90, and $120. $90, $70, $110, $120, and $150. 100 B 90 C 108 ATC 220 150 130 D 132 MC 80 90 130 E Bill asks you to come to his rescue and provide the missing data in the five spaces identified as A, B, C, D, and E.
How much would Software C cost you in the long run? $[?] Not Satisfied $5,000 Software C 20% • $20,000 Software D $8,000 Satisfaction Not Satisfied 85% $0 15% • $15,000 Enter
Chris The use of fixed cost items to magnify the firm's results Correct! What are some uses for break-even analysis? Select all that apply, then click Submit below To see how much the changes in cost affect variable costs. To see how much the changes in volume affect cost and profit. To determine the magnitude of operations necessary to avoid loss. To figure out the most efficient level of fixed costs for the firm. To figure out the most inefficient way to make profit. To figure out the operating leverage. Submit
Σ 市 T F. apter 12 Saved Help Assume that the most efficient production technology available for making vitamin pills has the cost structure given in the following table. Note that output is measured as the number of bottles of vitamins produced per day and that costs include a normal profit. Output 50,800 $170,000 $0.60 100,800 220,000 1.10 150,800 257,500 1.71 200,800 365,500 2.45 Instructions: Enter your answers rounded to two decimal places. a. What is ATC per unit for each level of output listed in the table? Enter your answers in the table above. b. Are there economies of scale in production? (Click to select) v c. Suppose that the market price for a bottle of vitamins is $1.71. At that price the total market quantity demanded is 301,600,000 bottles. How many firms will be in this industry? firm(s) < Prev 6 of 8 68°F Mostly clear e here to search 查。 Profile Ball®1.0 F6 F4 F3 F2 F1 %23 $4 8. 4. 5. 3. B.
Food Fanatics caters meals where its costof producing an extra meal is $25. Each ofits meals sells for $20. At this rate, whatshould the company do?a. Produce more meals and increase itsprofit.b. Produce fewer meals and increase itsprofit.c. Not change production.d. None of the above.