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3 years ago

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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Totz Company produces jump ropes. Totz Company has the following sales projections for the upcoming year: First quarter budgete

professor190 [17]

Answer:

1st quarter:

Sales budget= 26,400 units

Explanation:

Giving the following information:

First-quarter budgeted jump rope sales in units 23,000

Second-quarter budgeted jump rope sales in units 70,000

Inventory at the beginning of the year was 3,600 jump ropes.

Totz Company wants to have 10% of the next quarter's sales in units on hand at the end of each quarter.

To determine the production budget, we need to take into account the beginning inventory, the sales for the quarter and the ending inventory.

Sales budget= sales for the quarter + ending inventory - beginning inventory

1st quarter:

Sales budget= 23,000 + (70,000*0.10) - 3,600= 26,400 units

3 0

3 years ago

Assume that a firm hires an additional employee. If the marginal product for that employee is greater than for the previous empl

Tom [10]

If the marginal product for that employee is greater than for the previous employee hired, it must be that there are gains from specialization

<h3>What is marginal product ?</h3>

The marginal product or marginal physical productivity of an input (factor of production) in economics, and particularly neoclassical economics, is the change in output that results from using one more unit of a specific input (for example, the change in output when a firm's labor is increased from five to six units), assuming that the quantities of other inputs are kept constant.
The marginal product is the mathematical derivative of the production function with respect to that input if the output and the input are infinitely divisible, in which case the marginal "units" are infinitesimal.
When more of one input, such as labor, is used while maintaining a constant level of the other input, such as capital, the marginal product initially rises according to the "rule" of declining marginal returns.

To learn more about marginal product with the given link

brainly.com/question/13623353

#SPJ4

8 0

1 year ago

Marcy left a large Fortune 500 company to go to a small start-up technology firm. Earlier in her career, Marcy wanted a high sal

MrRa [10]

Answer: Maslow's hierarchy of needs

Explanation:

Maslow's hierarchy of needs is referred to as or known as a theory which was proposed by the American psychologist Abraham Maslow, that tends to put forth the notion/idea that individuals are usually/mostly motivated by the following five categories of need, i.e. safety, physiological, esteem, love, and also self-actualization.

3 0

2 years ago

To respond to the structure of its industry, an organization should choose a __________.

Usimov [2.4K]

To respond to the structure of its industry, an organization should choose a __________.

Competitive strategy

8 0

2 years ago

Lohn Corporation is expected to pay the following dividends over the next four years: $16, $12, $11, and $7.50. Afterwards, the

andreev551 [17]

Answer:

Current share price =$77.81

Explanation:

Price of the stock today = $\frac{D1}{(1+ke)^1}+\frac{D2}{(1+ke)^2}+\frac{D3}{(1+ke)^3}+\frac{D4}{(1+ke)^4}+\frac{P4}{(1+ke)^4}$ .

where P4 = $\frac{D5}{ke-g}$

where D5 = D4(1+g)

Price of the stock today = $\frac{16}{(1+0.16)^1}+\frac{12}{(1+0.16)^2}+\frac{11}{(1+0.16)^3}+\frac{7.50}{(1+0.16)^4}+\frac{7.50(1.06)}{(0.16-0.06)(1+0.16)^4}$ = $77.81

8 0

2 years ago