1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
gladu [14]
3 years ago
14

A competitive firm currently produces and sells 500 units of output. Its total revenue is $3,500; the marginal cost of producing

the 500th unit of output is $5.75; and the average total cost of producing the 500th unit of output is $4.00. Is the firm maximizing its profit, or should it increase or decrease output in order to increase its profit?
Business
1 answer:
Orlov [11]3 years ago
3 0

Answer: Reduce output

Explanation: Profit = Total Revenue – Total Costs

Therefore, profit maximization occurs therefore, profit maximization occurs at the most significant gap or the biggest difference between the total revenue and the total cost.

TC = AC×Q = $4×500 = $2,000

Theoretically, profit maximization occurs where MR = MC

From the forgoing, producing an extra unit will increase the cost of the company thereby reducing profit.

The company should reduced output to around 499 units or less

You might be interested in
On a linear demand curve, if the price is low and the quantity demanded is high, demand is _____ in that region and a price incr
kirill [66]

On a linear demand curve, if the price is low and the quantity demanded is high, demand is Inelastic in that region and a price increase will cause an increase  in total revenue

Revenue in accounting refers to the entire amount of money made through the sale of products and services that are essential to the company's core operations. [1] The term "commercial revenue" can also refer to sales or turnover. Some businesses make money from royalties, interest, or other fees. [2] The term "revenue" can mean income in general or the total amount of money earned over a certain time period, as in "Last year, Company X had revenue of $42 million." The general definition of profits or net income is total revenue less total expenses for a specific time period. Revenue is a component of the Equity section of the balance sheet in accounting, and revenue raises equity.

learn more about revenue:

brainly.com/question/8645356

#SPJ4

8 0
1 year ago
Bries Corporation is preparing its cash budget for January. The budgeted beginning cash balance is $19,200. Budgeted cash receip
drek231 [11]

Answer:

$13,400

Explanation:

The movement in cash balance over a period is as a result of receipts and disbursements over the period. This may be expressed mathematically as

Opening balance + receipts - disbursements = closing balance

If the company wants to maintain a desired closing balance, the amount to be borrowed would form part of the receipts

$19,200 + receipts - $190,400 = $31,200

Receipts = $190,400 + $31,200 - $19,200

= $202,400

Given Budgeted cash receipts total $189,000 then amount to be borrowed

= $202,400  - $189,000

= $13,400

5 0
3 years ago
Larry Mitchell invested part of his $ 24 comma 000 advance at 4 % annual simple interest and the rest at 7 % annual simple inter
mariarad [96]

Answer:

Amount invested at 4% is $14,000

Amount invested at 7% is $10,000

Explanation:

Data provided in the question:

Total amount invested = $24,000

Total yearly interest = $1,260

Now,

Let the amount invested at 4% annual simple interest be 'x'

Thus,

the amount invested at 7% annual simple interest will be $24,000 - x

Total interest earned = Interest at 4%  + Interest at 7%

$1,260 = 0.04x + 0.07(24,000 - x)

or

$1,260 = 0.04x + 1680 - 0.07x

or

-420 = -0.03x

or

x = $14,000

Hence,

Amount invested at 4% is $14,000

Amount invested at 7% is (24,000 - 14,000) = $10,000

6 0
3 years ago
Compute the payback period for each of these two separate investments: A new operating system for an existing machine is expecte
labwork [276]

Answer:

Project A's payback period = 2.23 years

Project B's payback period = 3.3 years

Explanation:

                                                              project A                project B

initial investment                                 $290,000               $210,000

useful life                                               6 years                   11 years

yearly cash flow                     $83,653 + $46,500     $46,000 + $17,727

                                                         = $130,153                = $63,727

salvage value                                          $11,000                 $15,000

payback period                      $290,000 / $130,153  $210,000 / $63,727

                                                        = 2.23 years              = 3.3 years

8 0
3 years ago
Adonis Corporation issued 10-year, 11% bonds with a par value of $270,000. Interest is paid semiannually. The market rate on the
shutvik [7]

Answer:

e) Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.

Explanation:

Based on this information,Adonis Corporation is issuing a coupon paying bond.

  • The $286,827 that they receive is the market price/ market value of the bond.
  • The duration of the bond = 10 years, however, since the coupons are paid semiannually, there will be 10*2 = 20 payments in total.
  • Semi annual coupon payment; PMT = (11%/2) *270,000 = $14,850
  • The $270,000 is the face value of the bond which must be repaid at the end of the life of this bond.
  • <em>Therefore, Adonis must pay $270,000 at maturity plus 20 interest payments of $14,850 each.</em>
3 0
3 years ago
Other questions:
  • Complete the sentences to identify the primary and secondary audience of Lee’s business message.
    13·1 answer
  • Lee Holmes deposited $15,000 in a new savings account at 9% interest compounded semiannually. At the beginning of year 4, Lee de
    9·2 answers
  • "The National Tree Company offers resellers half-price reductions on artificial Christmas trees if they purchase them in July. T
    12·1 answer
  • Kresley Co. has provided the following 20X5 current account balances for the preparation of the annual Statement of Cash Flows:
    7·1 answer
  • Which of the following is a drawback of the corporate structure?
    15·2 answers
  • This is 1 question do not delete, mods. how am I supposed to separate a connect the lines thing without knowing the answers
    15·1 answer
  • ABC Limited manufactures high quality copper pots and pans.
    8·1 answer
  • Suncoast Healthcare is planning to acquire a new x ray machine that costs $200,000. The business can either lease the machine us
    6·1 answer
  • Larry recorded the following donations this year: $500 cash to a family in need $2,400 to a church $500 cash to a political camp
    6·1 answer
  • The present value of $100 paid annually at year end for 20 years at 10% per year is:________.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!