« previous next »

Author Question: Sporto Auto Company manufacturers each of the aluminum engines used in their cars, and there is no ... (Read 34 times)

Charlie

  • Hero Member
  • *****
  • Posts: 640
on: Jul 1, 2018
Sporto Auto Company manufacturers each of the aluminum engines used in their cars, and there is no outside market for these engines. Suppose the marginal cost of producing the aluminum engines is constant at all quantities.
 
  What happens to the optimal transfer price and the quantity of cars produced if the cost of assembly increases? A) Price and quantity increase
  B) Price and quantity remain the same
  C) Price and quantity decrease
  D) Price remains the same and quantity decreases

Question 2

A small decrease in a production quota will have a large impact on the support price if:
 
  A) demand is completely elastic.
  B) demand is highly (but not completely) elastic.
  C) demand is inelastic.
  D) The demand elasticity does not affect the price outcomes of a quota program.


nickk12214

  • Sr. Member
  • ****
  • Posts: 332
Reply #1 on: Jul 1, 2018
Answer to Question 1

D

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Although not all of the following muscle groups are commonly used, intramuscular injections may be given into the abdominals, biceps, calves, deltoids, gluteals, laterals, pectorals, quadriceps, trapezoids, and triceps.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

Only 12 hours after an egg cell is fertilized by a sperm cell, the egg cell starts to divide. As it continues to divide, it moves along the fallopian tube toward the uterus at about 1 inch per day.

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

Supermassive Black Holes as Engines for Galactic Activity Supermassive Black Holes as Engines for Galactic Activity
An Internet connection is usually needed to perform updates although some vehicle manufacturers use ... An Internet connection is usually needed to perform updates although some vehicle manufacturers use ...
During a period of high power demand, the voltage output of the power company is reduced by ... During a period of high power demand, the voltage output of the power company is reduced by ...
Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ... Juan's Software Service Company is in a perfectly competitive market. Juan has total fixed ...
A company that makes cell phones has the following cost structure. They have fixed costs of ... A company that makes cell phones has the following cost structure. They have fixed costs of ...
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Inflammatory response Animation

For a complete list of videos, visit our video library