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zhuklara [117]
1 year ago
11

If firms are producing at a profit-maximizing level of output where the price is less than the average total cost:_________

Business
1 answer:
Travka [436]1 year ago
5 0

If firms are producing at a profit-maximizing level of output where the price is less than the average total cost <u>economic</u><u> profits must be zero</u>.

Profit-maximizing is the process of determining the most effective way to maximize earnings, either in the short or long term. It primarily focuses on identifying the price and output level that generates the greatest profit. It is a crucial premise that supported the development of numerous economic theories, including the pricing and production theories.

Profit maximizing is the sole goal of organizations, and conventional theories are built around this idea. It is also viewed as the organization's most rational and fruitful business goal. It aids in determining corporate organization behavior and the impact of various economic conditions.

To know more about profit-maximizing

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Answer:

The Purchased 5,000 shares at $95,000 would be considered as <u>Treasury stock</u> and it will be treated as <u>Asset</u>

Explanation:

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Treasury stock           $95,000

Cash                                              $95,000

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3 years ago
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During January 2016, Wells Corporation purchased $200,000 of inventory; they paid one-fourth in cash, and signed a note for the
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Answer:

Inventory                        $200,000    

Cash                                                      $50,000

Notes payable                                      $150,000

Explanation:

Data provided in the question:

Cost of the inventory purchased = $200,000

Amount paid in cash =  one-fourth

= one-fourth of $200,000

= $50,000

For the remaining balance signed a note i.e = $200,000 - $50,000

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This transaction will be recorded as:

Inventory                        $200,000    

Cash                                                      $50,000

Notes payable                                      $150,000

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