The company is currently selling 5,000 units per month. fixed expenses are $243,000 per month. the marketing manager believes that an $11,000 increase in the monthly advertising budget would result in a 180 unit increase in monthly sales. what should be the overall effect on the company's monthly net operating income of this change?

per unit price percent of sales

selling prices $150 100%

variable exp 90 60%

cont margin 60 40%

(a) increase of $200

(b) decrease of $200

(c) increase of $10,800

(d) decrease of $11,000

Michigan mattress company is considering the purchase of land and the construction of a new plant. the land, which would be bought immediately (at t = 0), has a cost of $100,000 and the building, which would be erected at the end of the first year (t = 1), would cost $500,000. it is estimated that the firm's afterminustax cash flow will increase by $100,000 starting at the end of the second year, and that this incremental flow would increase at a 10 percent rate annually over the next 10 years. what is the approximate payback period?

Arecession is defined as a period in which

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.