Johnson Technology Specializes in Graphic Design and Video Production

question 75

Multiple Choice

Johnson Technology specializes in graphic design and video production.In October 2014,the company incurred the following costs for providing services to one of its clients.
-Johnson Technology's contract with the client discloses a 20% profit margin on the cost incurred.Determine the profit earned by the company by providing services.

• A)$3,500
• B)$700
• C)$4,200
• D)$360

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Definitions:

Nash Equilibrium

Nash Equilibrium is a concept in game theory where each player's strategy is optimal given the strategies of all other players, leading to a situation where no player can benefit by changing strategies unilaterally.

Profit-Maximizing

A strategy or process by which a firm adjusts its production and pricing to achieve the highest profit possible.

Collude

To come to a secret understanding for a harmful purpose; often refers to competitors agreeing on prices or market shares to gain an advantage.

Annual Fixed Cost

Regular expenses incurred by a business or individual that do not vary with production level or output within a year.