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1 year ago

if firms are producing at a profit-maximizing level of output where the price is equal to the average total cost

1 answer:

6 0

There must be no Economic profits. The total of the quantities that every single producer is willing to supply makes up the market supply in a market with perfect competition.

<h3>What output volume is appropriate for the corporation aiming to maximize profits?</h3>

Marginal revenue and cost must match in order to maximize total profit. At 4 units of output, in this example, the maximum profit is realized. Where MR = MC is where a corporation with perfect competition will also find its level of output that maximizes profits.

<h3>When a corporation engaged in competition seeks to maximize immediate economic gains?</h3>

The amount of output the company picks where its marginal revenue and cost are equal to optimize profits.

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Identifying time lags Advocates of active policy face several obstacles when implementing discretionary fiscal or monetary polic

e-lub [12.9K]

Answer: d. Decision-making lag

Explanation:

When policy makers have identified that there is a problem that needs fixing but cannot seem to agree on the way forward, this is known as a <em>Decision - Making Lag or simply the Decision Lag.</em> It is one of the 3 specific inside Policy Lags and can be devastating due to the uncertainty of time it might take.

For instance, the economists suggesting dropping the federal funds rate by 0.25% might have the backing of one half of the Fed and the other Economists, the other half. Arguments could therefore go on for weeks before a decision is made.

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3 years ago

Virginia supply offers their customers trade credit with terms 2/15, net 30. this implies that:

Ivenika [448]

This implies that 2%/15 net 30 is a method of giving cash discounts on purchases. What this means is that if the bill is paid within 15 days, there is a 2% discount. Or else, the total amount is payable within 30 days. For instance, if "$1000 2/15 net 30" is printed on a bill, the buyer can take a 2% discount ($1000 x .02 = $20) and make a payment of $980 within 15 days or pay the whole $1000 in 30 days.

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3 years ago

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There are 45 potential workers in this economy. How many people are unemployed?

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3 years ago

You spent this much on your past three electric bills: $76, $58, and $88. How much should you budget for electricity this month?

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3 years ago

Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs

alekssr [168]

Answer:

As overhead was underapplied, the balance in overhead will be $33,000 credit.

Explanation:

<u>First, we need to calculate the predetermined overhead rate:</u>

<u></u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 452,000 / 2,260,000

Predetermined manufacturing overhead rate= $0.2 per direct labor dollar

<u>Now, we can allocate costs:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 0.2*1,930,000

Allocated MOH= $386,000

<u>Finally, we determine the over/under allocation:</u>

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 419,000 - 386,000

Underapplied overhead= $33,000

As overhead was underapplied, the balance in overhead will be $33,000 credit.

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3 years ago