This question is incomplete, I got the complete one from google as:
Output Total cost
0 5
1 10
2 12
3 15
4 24
5 40
If the market price is $16, this firm will a. produce 4 units of output in the short run and exit in the long run. b. produce 5 units of output in the short run and exit in the long run. c. shut down in the short run and exit in the long run. d. produce 5 units of output in the short run and face competition from new market entrants in the long run
Answer:
Option D is correct- If the market price is $16, this firm will produce 5 units of output in the short run and face competition from new market entrants in the long run.
Explanation:
The fixed cost is $5, this indicates that when the market price is $16, the marginal cost is also $16.
When the 5th unit is produced, the total revenue received will be $80 while the total cost will be $40. This indicates that there will be a positive economic profit which will bring new firms in the long run.
Hence, option D is the correct answer - If the market price is $16, this firm will produce 5 units of output in the short run and face competition from new market entrants in the long run.
Its C. All choices involve cost
Answer:
A service guarantee is a way to avoid compensating customers for a service failure.
Explanation:
Answer:
Total Stockholder's Equity is $26,276,000.
Explanation:
Stockholders’ equity section of the balance sheet
Common Stock @ $1 $1,800,000
Additional Paid-in Capital, $1,6200,000
Retained Earnings, $9200,000
Less: Treasury Stock <u>$924,000</u>
Total Shareholders Equity $26,276,000
As treasury stock is the contra equity account so its value will be deducted from equity. So total Stockholder's Equity is $26,276,000.
Answer:
$650,752
Explanation:
The computation of the avoidable interest is shown below;
But before that following calculations must be done
Interest payable on short term loan
= $2,240,000 × 10%
= $224,000
Interest payable on long term loan
= $1,600,000 × 11%
= $176,000
Therefore,
Weighted average interest rate is
= ($224,000 + $176,000) ÷ ($2,240,000 + $1,600,000) × 100
= 10.42%
Now
Avoidable interest is
= [$3,200,000 × 12%] + [($5,760,000 - $3,200,000) × 10.42%]
= $650,752
