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SVETLANKA909090 [29]
3 years ago
11

If a competitive firm can sell a ton of steel for $500 a ton and it has an average variable cost of $400 a ton, and the marginal

cost is $600 a ton, the firm should:
Business
1 answer:
Lena [83]3 years ago
8 0
<span>If a competitive firm can sell a ton of steel for $500 a ton and it has an average variable cost of $400 a ton, and the marginal cost is $600 a ton, the firm should reduce its output. The reason for the reduction of output is the marginal cost it will have. The marginal cost exceeds the selling price of the product which is a bad sign for the company.</span>
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Crispy Fried Chicken bought equipment on January 2​, 2016​, for $ 18 comma 000. The equipment was expected to remain in service
qaws [65]

Answer:

Please check the attached image for the depreciation schedule

2. Units of production method

Explanation:

Book value in year 1 = Cost of asset - Depreciation expense of year 1

Book value in year in subsequent years = previous book value - that year's depreciation expense

Accumulated depreciation is sum of deprecation expense

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

($18,000 - $3,000) / 4 = $3,750

Depreciation expense each year of the useful life is $3,750

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Deprecation factor = 2 x (1/useful life) = 0.5

Depreciation expense in year 1 = 0.5 x $18,000 = $9,000

Book value = $18,000 - $9,000 = $9,000

Depreciation expense in year 2 = 0.5 × $9,000 = $4,500

Book value = $9,000 - $4,500 = $4,500

Depreciation expense in year 3 = 0.5 x $4,500 = $2250

Book value = $4,500 - $2250 = $2250

Depreciation expense in year 4 = 0.5 × $2250 = $1125

Depreciation expense using the unit of production method =( Total production in the year/ total productive capacity) × (cost of asset - Salvage value)

Depreciation expense in year 1 = ($18,000 - $3,000) x (300 / 3000) = $1,500

Depreciation expense in year 2 =18,000 - $3,000) x (900 / 3000) = $4,500

Depreciation expense in year 3 = (18,000 - $3,000) x (1200 / 3000) = $6,000

Depreciation expense in year 3 = (18,000 - $3,000) x (600 / 3000) = $3,000

The Units of production method tracks wear and tear accurately because deprecation depends on the production each year.

I hope my answer helps you

6 0
3 years ago
Company Z is a U.S. company that is the first in this country to produce a good that is already produced in many foreign countri
lina2011 [118]

Answer:

Infant industry.

Explanation:

In this scenario, Company Z is a U.S. company that is the first in this country to produce a good that is already produced in many foreign countries and sold in the United States. Most likely, the argument it will voice in its attempt to be protected from foreign competition is the infant industry argument.

An infant industry can be defined as an industry that is still in its early stages of development and as such are not capable of competing with foreign companies.

<em>Hence, according to the infant industry theory the argument would be that infant industries should be offered some kind of protection from competitors in other industries either foreign or local until they mature and develop a good and reputable economies of scale. </em>

6 0
3 years ago
A company makes tools, such as hammer and tape measures. One of their primary raw materials is steel and if they run out of stee
Sedbober [7]

Answer:

D. continuous review system

Explanation:

In the context of manufacturing it seems that the system being described would be a continuous review system. Like mentioned in the question this is a system that automatically adjusts the stock level in real time when a product moves in or out of stock, and automatically triggers an order for more stock as soon as the stock level hits a low quantity point is hit.

3 0
3 years ago
If the slope of a straight line is minus3 and if Y​ (the variable on the vertical​ axis) decreases by​ 6, then X​ (the variable
Sergio039 [100]

Answer:

X​ (the variable on the horizontal​ axis) will increases by 2.

Explanation:

The slope of a straight line is -3. So, m=6.

Slope of a straight line is

m=\dfrac{Rise}{Run}=\dfrac{\text{Change is y}}{\text{Change in x}}

Y​ (the variable on the vertical​ axis) decreases by​ 6.

Change is y = -6

We need to find the change in ​ (the variable on the horizontal​ axis).

Substitute the given values in the above formula.

-3=\dfrac{-6}{\text{Change in x}}

\text{Change in x}=\dfrac{-6}{-3}

\text{Change in x}=2

Note: All options are incorrect.

Therefore, X​ (the variable on the horizontal​ axis) will increases by 2.

5 0
3 years ago
The fact that financial services are more plentiful and easier to access means that
DaniilM [7]
A. consumers need to be better informed about what services are available and what those services cost.
8 0
3 years ago
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