James will need to decrease the marginal revenue to reduce his output.
<h3>What happens when marginal revenue equals marginal cost?</h3>
This is known as an economic equilibrium and there is no economic profit in such equilibrium.
To incur profit now, he will have need to decrease the marginal revenue to reduce his output
Therefore, the Option B is corrrect
Missing options <em>"will increase profits, will decrease marginal revenue, can charge a higher price."</em>
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<em>brainly.com/question/10822075</em>
Answer:
$5,000 will be distributed to preferred stockholders and $45,000 will be distributed among common stockholders.
Explanation:
The accrued dividend on preferred stock based on predetermined rate or amount is known as preferred stock dividend. Preferred stock has priority over common stockholders, It means that dividend will be given to preferred stockholder first.
Preferred stock dividend = 4,000 shares x $25 x 5% = $5,000
Common stock dividend = $50,000 - $5,000 = $45,000
Answer:
We can say the rate is close enought to 14%
Explanation:
tthe IRR will be the rate at wich the NPV is zero
The cash flow are an annuity of 4,120 for 6 years
NPV = present value of cash flow - investment
0 = PV of annuity - investment
0 = PV of annuity - 16,000
PV = 16,000
C 4120
time 6
rate IRR
We divide the PV by the annuity to get the annuity factor
16,000 / 4,120 = 3,88349
We can look into the annuity table for a factor at time = 6 close to this figure
we have
14% factor of 3.889
15% factor of 3.784
We can say the rate is close enought to 14%
Answer:
Option (A) is correct.
Explanation:
Initial break even:
Let x be the no. of units in the initial break even.
Sales = Costs
Unit Selling price × No. of units = Unit Variable Cost × No. of units + Total fixed costs
250 × x = 100 × x + 840,000
150 × x = 840,000
x = 5600 units
10% increase in variable cost(new):
= Unit Variable Cost + 10% of Unit Variable Cost
= 100 + 100 × 0.10
= 110
4% increase in fixed cost(new):
= Total fixed costs + 4% of Total fixed costs
= 840,000 + 840,000 * 0.04
= 873,600
Break Even:
Let y be the no. of units in the break even.
Sales = Costs
Unit Selling price × No. of units = Unit Variable Cost new × No. of units + Total fixed costs new
250 × y = 110 × y + 873,600
140 × y = 873,600
y = 6,240
Change = y - x
Change = 6,240 - 5,600
Change = 640 increase
Answer:
Actual reserve ratio = Money that bank holds per deposit
= 10 / 100
= 10%
Desired reserve ratio = Money banks wants to hold per deposit
= 9 / 100
= 9%
Excess reserves = Actual reserves - desired reserves
= 12,000 - 7,000
= $5,000
