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How is a perfectly competitive firms marginal cost curve related to its supply curve?
a perfectly competitive firms supply curve will be the portion of the marginal cost curve which lies above the average variable cost curve (AVC)..this will be due to the firms unwillingness to supply below the price in which they could cover their variable costs
What is the lowest point on a firms short run supply curve?
The minimum is price=average cost below this price supply=0
Which of the following describes the possible pricing pattern of firms in perfect competition?
each firm charges a different price to allow for difference fixed cost
What steps does the firm need to take to reconcile labor supply and labor demand?
Labor supply, and demand is what determines the cost of Labor. Firms must consider their margin, pricing policy, improvement costs to raise productivity, market share, and competition, to arrive at a labor level reconciliation. Or The first step a firm needs to take to reconcile labor supply and labor demand is to analyze what problems need to be resolved. The goal is to have the labor supply, which is made up of the hours employees work, equal the labor demand, which is the work that needs to be done. Some firms hire outside consultants to do this for them.
The advantages and disadvantages of full cost plus pricing?
The advantage of full cost plus pricing is the higher return on investment. The disadvantage of full cost-plus pricing is lower demand for the products.
Why do firms use cost price pricing for supply contracts?
They are guaranteed a profit.
How is a perfectly competitive firms marginal cost curve related to its supply curve?
a perfectly competitive firms supply curve will be the portion of the marginal cost curve which lies above the average variable cost curve (AVC)..this will be due to the firms unwillingness to supply below the price in which they could cover their variable costs
What is the differences between cost-based pricing or market-based pricing?
Cost based pricing uses the costs that were invested in producing the goods. In market based pricing, supply and demand are the key factors that determine price.
What is the lowest point on a firms short run supply curve?
The minimum is price=average cost below this price supply=0
Which of the following describes the possible pricing pattern of firms in perfect competition?
each firm charges a different price to allow for difference fixed cost
Interest must be charged on which one what types of contracts with Advance Payments?
FAR 32.407(c) Interest shall be required on contracts that are for acquisition, at cost, of property for Government ownership, if the contracts are awarded in combination with, or in contemplation of, supply contracts or subcontracts.
What has the author K Dixon written?
K. Dixon has written: 'Cost determination and cost recovery pricing in nonbusiness situations' -- subject(s): Finance, Research and development contracts, Universities and colleges
What steps does the firm need to take to reconcile labor supply and labor demand?
Labor supply, and demand is what determines the cost of Labor. Firms must consider their margin, pricing policy, improvement costs to raise productivity, market share, and competition, to arrive at a labor level reconciliation. Or The first step a firm needs to take to reconcile labor supply and labor demand is to analyze what problems need to be resolved. The goal is to have the labor supply, which is made up of the hours employees work, equal the labor demand, which is the work that needs to be done. Some firms hire outside consultants to do this for them.
Disadvantages of Cost-Based pricing?
The cost based pricing may overlook costs that are not monetary. Cost based pricing may overlook inefficiency Cost based pricing may not take advantage of consumer surplus.
What clause in the FAR provides a remedy to the government in the event the contractor submits defective certified cost or pricing data on this modification?
FAR 15.408 (c) states, "The contracting officer shall, when contracting by negotiation, insert the clause at 52.215-11, Price Reduction for Defective Certified Cost or Pricing Data -- Modifications, in solicitations and contracts when it is contemplated that certified cost or pricing data will be required from the contractor or any subcontractor (see 15.403-4) for the pricing of contract modifications, and the clause prescribed in paragraph (b) of this section has not been included."
Why Cost-plus pricing is inherently circular?
Cost plus pricing is "circular" for manufacturing firms. They estimate demand to determine fixed manufacturing costs per unit, so that they can mark up cost to obtain a price. However the price affects the quantity demanded, the higher the price the lower the demand. The fewer the units purchased the cost per unit will go up, increased the cost plus price, lowering the demand further.
How much would it cost to supply meals and refreshments in a bowling alley?
The pricing will depend on the bowling center, type of meal and refreshments, length of time, etc.
