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lara [203]
3 years ago
15

Assume Dell Computer Company operates in a perfectly competitive market producing 5,000 computers per day. At this output level,

marginal cost exceeds this firm's price. To maximize profits, Dell should
A) make no adjustments as they are already maximizing their profits.
B) increase their output.
C) decrease their output.
D) stop producing since it is earning a loss.
Business
1 answer:
zlopas [31]3 years ago
6 0

Answer:

The correct answer is option C.

Explanation:

Dell computer company is producing 5,000 computers per day.

At this output level, marginal cost is greater than the product price.

In order to maximize profits firm needs to reduce the output to the point where the marginal cost of production is equal to the per-unit price of the product.  

The marginal cost of production is the incremental cost of producing an additional unit of output. If the company reduces the quantity of output produced the marginal cost will reduce as well.

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The survival principle states that A. the only firms that survive are those that maximize profits. B. firms must undertake socia
Flauer [41]

Answer:

The survival principle states that

A. the only firms that survive are those that maximize profits.

Explanation:

Profit maximization is important for a firm to survive.  Without profit maximization, firms fail.  Profits impact share price, business growth, and short-term and long-term survival.  Profits reduce debt burden, and increase capital investments and acquisitions.  Without profits, a firm cannot pay dividends or repurchase shares.  Profit is at the center of a firm's survival.  Even Baumol's theory of sales maximization states that it is only when an acceptable level of profit has been achieved that a firm can shift its focus away from profits to revenue maximization.  This emphasizes the importance of profit maximization.  Profit maximization also contributes to the maximization of cash flows.

5 0
3 years ago
If in addition to having a high market share in the freight-forwarding industry, your company has strong technical know-how and
Ksivusya [100]

The most negative classification which the freight forwarding could receive is:

  • Average Business

<h3>What is Negative Classification?</h3>

This refers to the use of models to find out the predicted outcome which is in the negative class.

With this in mind, we can see that  because in the high market share, there is the presence of strong technical know how and can produce high-quality products at low cost, then the most negative classification which  the freight forwarding could receive is average business.

Read more about negative classification here:
brainly.com/question/13734308

5 0
2 years ago
A ________ partner has responsibility or liability for losses beyond their investment, but a ______- partner only has liability
inna [77]

Answer:

1. a GENERAL partner

2. a LIMITED partner

Explanation:

A GENERAL partner has responsibility or liability for losses beyond their investment. They are bound up to the extent of their personal assets incase the partnership is insolvent. They are also responsible in the management and decision-making process in the operation of the partnership. A LIMITED partner on the other hand is only liable in the partnership’s losses up to the extent of his investment in case of partnership’s insolvency. But a limited partner should NOT participate in the management and decision-making process of the operation in the partnership for him to be not liable up to the extent of his personal asset. A limited partner should also be recorded in the articles of the partnership as “LIMITED PARTNER”, otherwise he is liable as general partner.

8 0
3 years ago
In an insurance company, the senior manager of life insurance division casually, discusses a new car in the market with the seni
sertanlavr [38]

Answer:

This is an example of informal communication as it takes place without any formal channels being used, it is in a very casual way and has no relation to the work or company they are working in.

Explanation:

4 0
4 years ago
Cullumber Corporation has these long-term investments: common stock of Vejas Co. (10% ownership), cost $116,090, fair value $110
Dovator [93]

Answer and Explanation:

Partial Balance sheet

Investments  

Stock investments (At fair value)       $110,090

Debt investments (at fair value)       $163,100

Stock investments (At equity)       not given: $0

Total investment)                               $276190

4 0
4 years ago
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