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1 year ago

The monopolist's level of output is not at the minimum point of ______, meaning it will not be productively efficient.

1 answer:

3 0

When a monopolist's level of output is not at the minimum point of average total cost, this means it will not be productively efficient.

<h3>What is an average total cost?</h3>

An average total cost refers to a cost derived from total fixed and variable costs divided by total units produced.

In conclusion, this cost is used to evaluate how the total per-unit cost change as a result of output

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2 years ago

Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash

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A-2 Ratio of real Assets to Total Assets = 0.3

B-2 Ratio of real Assets to Total Assets= 1

C-2 Ratio of real Assets to Total Assets= 0.2

The company has low ratio at the start , increases to full when producing and then again decreases.

Explanation:

The balance sheet after Lanni accepts the Bank Loan. The cash increases and so does the liability increases.

Lanni Products

Balance Sheet

Assets Liabilities & Shareholders' Equity

Cash $ 70,000 Bank loan $ 50,000

Computers $30,000 Shareholders' equity 50,000

Total $ 100,000 Total $ 100,000

A-2 Ratio of real Assets to Total Assets

Real Assets = $ 30,000

Total Assets = $ 100,000

Ratio = 30,000/100,000 = 0.3

B-1

Lanni Products

Balance Sheet

Assets Liabilities & Shareholders' Equity

Software $ 70,000 Bank loan $ 50,000

Computers $30,000 Shareholders' equity 50,000

Total $ 100,000 Total $ 100,000

The software costs $ 70,000. The Balance sheet is as given above and the cash will be replaced by the software.

B-2 Ratio of real Assets to Total Assets

Real Assets = $ 100,000

Total Assets = $ 100,000

Ratio = 100,000/100,000 = 1.0

C-1 The share given are calculated ( 1500 *80= $ 120,000) . And after it accepts the payment the share holder's equity increases and the assets as well.

Lanni Products

Balance Sheet

Assets Liabilities & Shareholders' Equity

Shares $ 120,000 Bank loan $ 50,000

( 1500 *80)

Computers $30,000 Shareholders' equity 100,000

Total $ 150,000 Total $ 150,000

C-2 Ratio of real Assets to Total Assets

Real Assets = $ 30,000

Total Assets = $ 150,000

Ratio = 30,000/150,000 = 0.2

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2 years ago