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2 years ago

a. The equality of MR and MC is essential for profit maximization in all market structures because if

1 answer:

ozzi2 years ago

3 0

The equality of MR and MC is essential for profit maximization in all market structures because if MR and MC are equal, any other output level will result in reduced profits.

<h3>What is profit maximization?</h3>

This is when a firm or an organization is able to make profit from its produced. Profit maximization is the traditional approach and the primary objective of financial management.

When profit is maximized there is a high revenue which can be used for business expansion. Profit maximization is the core goal of every business that can be cons. It implies that every decision relating to business is evaluated in the light of profit.

Learn more about profit maximization here: brainly.com/question/13464288

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What annual inflation rate do fed officials consider a healthy level for spending business investment and higher wages

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3 years ago

Outsourcing is:

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Answer: Option A

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From the above explanation we can conclude that option A is correct.

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3 years ago

The law of diminishing marginal returnsa. explains why the average total cost, average fixed cost and marginal cost curves are U

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Answer:

c) explains why the average total cost and marginal cost curves are U-shaped in the short run.

Explanation:

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3 years ago

Which of these statements is true about the audit opinion formulation process presented in this chapter? a. The audit opinion fo

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Answer:

The answer is B. The audit opinion formulation process is based on the premise that management has responsibility to prepare the financial statements and maintain internal control over financial reporting.

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3 years ago

Pisa, Inc. leased equipment from Williamsburg Company under a four-year lease requiring equal annual payments of $68,830, with t

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Answer:

$54,639

Explanation:

the approximate amount of principal reduction when the second lease payment is made in Year 2 can be calculated by making the Lease amortization table as follows

DATA

Annual payments = 68,830

Implicit rate = 8%

Annuty factor for 4 years at 8% = 3.55710

Present value of lease payment =$246,212 (68830*3.57710 )

Year 1 Year 2

Opening balance - $177,382(w)

interest - $14,191(w)

payments $68,830 $68,830

principal payments $68,830 $54,639

closing balance $177,382(w) $122,743

Working

Closing balance = Present value of lease payment - Annual payment

Closing balance = $256,212 - $68,830

Closing balance = $177,382

Interest = closing balance x implicit rate

Interest = $177,382 x 8%

Interest = $14,190.56

7 0

3 years ago