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hammer [34]
2 years ago
15

Assume a purely competitive firm is selling 200 units of output at $3 each. At this output, its total fixed cost is $100 and its

total variable cost is $350. This firm Multiple Choice is maximizing its profit. is making a profit, but not necessarily the maximum profit. should shut down in the short run. is incurring losses.
Business
1 answer:
raketka [301]2 years ago
8 0

The correct option is:<u> maximizing its </u><u>profit</u><u>, but not necessarily the </u><u>maximum profit</u><u>.</u>

<h3>What is Profit Maximization in a Perfectly Competitive Market ?</h3>

The perfectly competitive firm can choose to sell any quantity of output at exactly the same price. This implies that the firm faces a perfectly elastic demand curve for its product: buyers are willing to buy any number of units of output from the firm at the market price.

When the perfectly competitive firm chooses what quantity to produce, then this quantity—along with the prices prevailing in the market for output and inputs—will determine the firm’s total revenue, total costs, and ultimately, level of profits.

A perfectly competitive firm has only one major decision to make—namely, what quantity to produce. To understand why this is so, consider the basic definition of profit:

Profit=Total revenue−Total cost

(Price) (Quantity produced)−(Average cost) (Quantity produced)

According the question scenario,

<u>Given:</u>

Firm is selling  = 200 units

output = $3 each

fixed cost = $100

variable cost = $350

<u>solution:</u>

Total average cost = variable cost + fixed cost .........(1)

Total average cost  = 350 + 100

Total average cost  = $450

Cost per unit = average cost ÷ no of unit ...................(2)

Cost per unit = 450  ÷  200

Cost per unit = $2.25

So here firm is incurring per units is $2.25 but here earning per unit is $3.

So that here firm is earning economic profit as here market price is greater than earning maximum profit.

Therefore, we can conclude that the correct option is : <u>maximizing its profit, but not necessarily the </u><u>maximum profit. </u>

Learn more about Profit Maximization on:

brainly.com/question/13464288

#SPJ4

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Answer:

A

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Which of the following statements about torts is correct?
swat32

Hello There!

Your answer would be <u>C). A tortious act may also be a criminal act.</u>

The reason why C would be your answer is because a tortious act is something that harms someone in any way. The reason why it "may" be a criminal act is because determine if the tortious act is a criminal act really depends on the scenario that is occurring. For example, someone could cause a tortious act in a way of self defense, this scenario would be debatable because the person that committed the tortious act had a valid reason in doing so, and that was protecting themselves. But, if a person was to cause a tortious act by  hurting someone to steal from them, then that would definitely be a criminal act because they are performing dangerous things to someone else, and the person could file a lawsuit against it.

Let's dive into why the other answer choices are incorrect. We can use the old fashion process of elimination:

Answer choice "A). A tortious act is always a criminal act" is incorrect because it is not always a criminal act, it depends on the scenario it's in. This is the reason why this answer choice would be eliminated.

Answer choice "B). A criminal act is always a tortious act" is incorrect because there are MANY criminal acts that doesn't harm anyone, for example, tax evasion (not paying taxes) is a criminal act, but does not cause any harm to anyone. This is the reason why this answer choice would be eliminated.

Answer choice "D). A tortious act is the same as a contract dispute" is incorrect because harming someone is not the same as not doing what a contract says. A contact dispute is when someone that's part of a contract did not do a duty that the contract says that they're suppose to do, and that usually doesn't have to be any harm to anyone. That would not be the same as a tortious act, harming someone. This is the reason why this answer choice would be eliminated.

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Answer:

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                                        = $40,000

WFI has taxable transaction and gain recognition of $40,000.

On the transfer of the land,

Appreciation of land = FMV - Adjusted Basis

                                  = $150,000 - $90,000

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WFI has taxable transaction and gain recognition of $60,000.

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