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2 years ago

Does a competitive firm’s price equal its marginal cost in the short run, in the long run, or both? explain.

1 answer:

5 0

The price of a firm is equal to its marginal cost in both the short and long run. In both the short and long run, price equals marginal revenue. Firms should increase output as long as marginal revenue exceeds marginal cost, and reduce output if marginal revenue is less than marginal cost.

Revenue is the gross income derived from the sale of goods and services related to the company's main activities. Commercial income is also called sales or earnings. Some companies derive their income from interest, royalties, or other fees.

Revenue is the gross income a business generates from its core business, such as sales of products and services, property rentals, regular payments and interest on loans. Sales are calculated before deducting costs such as discounts and returns.

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What helps a consumer determine the quantity of something to buy?

Molodets [167]

Answer:

marginal benefit

Explanation:

consumers are most likely going to buy something with value

3 0

3 years ago

Read 2 more answers

Berning Company purchased a tractor at a cost of $180,000. The tractor has an estimated salvage value of $20,000 and an estimate

scoundrel [369]

Answer:

$38,000 loss

Explanation:

For calculation of entry to record the sale of the tractor first we need to determine the total depreciation and net book value on Jan 1, 2018 which is shown below:-

Total depreciation = (Tractor cost - Salvage value) × (Hours in 2016 + Hours in 2017) ÷ Hours of operation

= ($180,000 - $20,000) × (2,400 + 2,100) ÷ 10,000

= $72,000

Net book value on January 1, 2018 = Tractor cost - Total depreciation

= $180,000 - $72,000

= $108,000

Loss on sale = Sold tractor amount - Net book value on January 1, 2018

= $70,000 - $108,000

= $38,000

8 0

3 years ago

the present value of a future sum decreases as either the discount rate or the number of periods per year increases, other thing

Katena32 [7]

The statement is true. The present value of a future sum decreases as either the discount rate or the number of periods per year increases, other things held constant.

Future cash flows are reduced by the discount rate, so the higher the cut price fee the lower the existing fee of the destiny coins flows. A lower discount rate leads to a higher present value. As this implies, whilst the discount price is better, cash in the future will be worth less than it's far nowadays.

Preserving other factors steady, as the interest price will increase, the present cost of an quantity to be received at the end of a fixed duration decreases. This means at a higher hobby price the present value of a future cash float falls. Decrease the prevailing price is. inversely related. growing the discount price decreases the present price and vise versa. Future value of that investment.

The prevailing value of a destiny lump sum decreases as the discount fee used decreases, All else held constant. the present cost and discount rate are inversely associated. If the destiny cost and the range of periods are held steady the prevailing price will lower as the cut price rate increases.

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4 0

2 years ago

An accounting professor at Middleton University devotes 60 percent of her time to teaching, 30 percent of her time to research a

rewona [7]

Answer:

Middleton University

Activity Cost of Instruction per student in the introductory and graduate financial accounting courses:

Total Instruction cost $57,600

Number of students = 65 (40 + 25)

Instruction per student = $57,600/65 = $886.15

Explanation:

a) Data and Calculations

Activities: Time Spent Activity Cost Introductory Graduate

Course preparation 30% $28,800 $17,723 $11,077

Classroom instruction 60% $57,600 $35,446 $22,154

Appointments with students 10% $9,600 $5,908 $3,692

Annual salary $96,000 $59,077 $36,923

b) The activities are three for each of introductory and graduate courses. The cost (annual salary) of the professor is allocated according to the time spent on each activity. This cost is further allocated between the introductory and graduate classes according to the number of students in each course. Overall, the same amount per each activity is spent on each student in both courses.

7 0

3 years ago

Which of the following would lead to an increase in the demand for golf balls?

dangina [55]

Answer:

Option C, An decrease in the price of golf balls, is the right answer.

Explanation:

Option “C” is correct because as per the law of demand, the price of a commodity and its demand are inversely related to each other. If the price increases, then the demand for the commodity falls. If the price of the commodity falls, then the demand increases. Similarly, in the case of golf balls, when its price decreases then this decrease in price will result in an increase in demand for golf balls.

3 0

3 years ago