Philip Morris expects the sales for his clothing company to be $670,000 next year. Philip notes that net assets (Assets − Liabilities) will remain unchanged. His clothing firm will enjoy a 9 percent return on total sales. He will start the year with $270,000 in the bank. What will Philip's ending cash balance be?

the ending cash balance is $330,300

Explanation:

The computation of the ending cash balance is shown below:

Ending cash balance = Opening cash balance + Profit

= $270,000 + (9% × $670,000)

= $270,000 + $60,300

= $330,300

We simply added the opening cash balance and the profit so that the ending cash balance could come

Hence, the ending cash balance is $330,300

Part a:  What will be the equilabrium price that Dumphy and Funke will charge?

Price charged = $30

Part b: What are the profits for Dumphy and Funke at the equilibrium price?

Profit on equilibrium price = $0

Part c: What type of competition would Funke and Dumphy likely engage in after the decrease in demand?

Price competition

Explanation:

Part a:  What will be the equilabrium price that Dumphy and Funke will charge?

Price charged by each of the artists will be equal to their marginal cost.

Thus, equilibrium P = MC = $30.

Part b: What are the profits for Dumphy and Funke at the equilibrium price?

Equilibrium profits will be 0 at the equilibrium because price charged is equal to MC, leading to no profits.

Part c: What type of competition would Funke and Dumphy likely engage in after the decrease in demand?

Price competition - as changes in price will lead to changes in demand and thus sales