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klemol [59]
3 years ago
9

A perfectly competitive firm will maximize profit or minimize losses in the short run by producing at the point where:

Business
1 answer:
Marina CMI [18]3 years ago
6 0

Answer:

The correct answer is option C.

Explanation:

A perfectly competitive firm faces a horizontal line demand curve at the market-determined price. This demand curve also represents average revenue and marginal revenue.  

The firm is able to maximize profits or minimize loss at the point where the marginal cost is equal to the price or marginal revenue and the price is such that the average fixed cost is being covered.  

In the short run, some costs are fixed while others are variables, a firm is able to minimize losses if the price is greater than AFC. But in the long run, all costs are variable so price should be either higher than or equal to ATC to maximize profits and minimize losses.

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Which of the following accounts is not closed? Question 3 options: A. Depreciation expense B. Dividends C. Service revenue D. Ac
larisa [96]

Answer:

The answer is D. Accumulated depreciation

Explanation:

Accumulated depreciation is the sum total of the depreciation recorded for certain assets.

6 0
3 years ago
The constraints of economic growth in south africa
Genrish500 [490]
The number one economic growth would be other countries sending food water clothing etc does not actually help it causes the shops and stores that are there to close cause they get no buiseness so I guess I'm saying it is not poverty its actually people just getting lazy
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4 years ago
In a process-costing system, the cost of abnormal spoilage should be A. Included in the cost of units transferred out. B. Prorat
Olin [163]

Answer:

D. Treated as a loss in the period incurred.

Explanation:

The process-costing system is used by firms that produce goods that goes through a set of manufacturing departments i.e it's used when firms mass produce nearly identical or similar units through various processes.

Under process-costing system, direct costs of production are accumulated,  summarized, and then assigned to all the units produced during the period.

Thus, a single product cost is calculated by dividing process cost in each manufacturing department by the respective units produced during the production period.

Some organizations that use the process-costing system are oil refineries, chemical processing companies, eraser manufacturing companies, and food production companies.

In a process-costing system, the cost of abnormal spoilage should be treated as a loss in the period incurred.

The abnormal spoilage refers to the cost exceeding normal level, associated with spoiled units of a manufacturing process. It should be treated as a loss in the period incurred because it cannot be recovered

4 0
3 years ago
What way should you NOT say thank you for the interview? A. A text message. B. An email. C. In person - you don't want to bother
pychu [463]
A text message . A text message is not formal , or professional . 



7 0
3 years ago
Read 2 more answers
A 15% increase in sales resulted in a 40% increase in net income for Company A and a 60% increase in net income for Company B. B
Ivahew [28]

company B has the greater operating leverage

What is operating leverage?

A cost-accounting method called operating leverage assesses how much a company or project can raise operating income by raising revenue. A company with significant operating leverage creates sales with a high gross margin and low variable costs.

The break-even point of a business is determined using operating leverage, which also aids in determining the right selling prices to cover all expenditures and make a profit.

Regardless of whether they sell any units of product, businesses with significant operational leverage must cover a bigger amount of fixed costs each month.

Low-operating-leverage businesses may have high variable costs that are directly related to sales, but they also have fewer monthly fixed expenses.

Learn more about operating leverage with the help of given link:-

brainly.com/question/6238482

#SPJ4

3 0
1 year ago
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