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mash [69]
3 years ago
12

A firm sells a product in a perfectly competitive market. The marginal cost of the product at the current output level of 200 un

its is $4. The minimum possible average variable cost is $3.50. The market price of the product is $3. To maximize profits or minimize losses, the firm should:
Business
1 answer:
slava [35]3 years ago
7 0

Answer:

Shut down

Explanation:

The minimum possible average variable cost is $3.50.

Variable cost represent the amount of cost that incurred every time the company produce one product.

The market price of the product is $3.

From this data alone, we can conclude that no matter how good the company's strategy to sell the product, it is impossible for the company to obtain profit. Since the cost of producing one product will always exceed the amount of profit that the company can obtain.

Closing down the operation or transitioning to other product will be the best option for the company.

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During a recent brainstorming session, one of Franklin's co-workers suggested that their company could sell some of the data con
horrorfan [7]

Answer:

The correct answer is D

Explanation:

When the company contains data of their customer, they have a responsibility of maintaining the accuracy as well as the privacy of the data which is provided to them.

So, the co- workers suggested to sell the data contained in the customer database in order to earn additional revenue, but the company is opposed to the idea as it is violating the ACM code of ethics, which is respect the privacy of others.

3 0
3 years ago
Murphy company has three departments, and uses a multiple predetermined overhead rate system. Department A manufactures parts in
oksano4ka [1.4K]

Answer:

1. Department A  (manufactures parts in a highly automated process): Machine hours

2. Department B  (assembles the parts by hand): Direct labor hours

3. Department C (places completed units in a heat chamber to sterilize the before they are shipped out): Batches

Explanation:

Machine hours is used to measure factory overhead as against the goods produced. This method is usually applied in production environment using machine, and where the most activities are done by machines.  On the other hand direct labor is used when the production of goods and services is done by human hands, and not machines. While Machine hours is the appropriate overhead allocation rate for Department A, Direct Labor hours will be appropriate for Department B. Hence Batches will be appropriate for Department C.

4 0
3 years ago
Hollandaise contains mostly
alexdok [17]
Hiya! hollandaise sauce mostly contains equal parts of egg yolk and butter.
8 0
3 years ago
Roadside Markets has 8.45 percent coupon bonds outstanding that mature in 10.5 years. The bonds pay interest semiannually. What
Anarel [89]

Answer:

Total $1,091.0030

Explanation:

The market value of the bond will be the sum of the present value of the cuopon payment and the maturity date:

present alue of cuopon payment will be calculate as present value of an ordinary annuity:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C 42.25   (1,000 face value x 8.45% /2 payment per year)

time 21 (10 years at 2 payment per year+ 1 payment)

rate 0.036   (here we use the YTM rate /2 because there are 2 payment per year)

42.25 \times \frac{1-(1+0.036)^{-21} }{0.036} = PV\\

PV $615.1803

<u>Then, for the present value at maturity, we calculate the present value of a lump sum</u>

\frac{Maturity}{(1 + rate)^{time} } = PV  

Maturity   1,000.00

time   21.00

rate  0.036

\frac{1000}{(1 + 0.036)^{21} } = PV  

PV   475.82

<u>Finally, we add them both together</u>

PV c $615.1803

PV m  $475.8227

Total $1,091.0030

8 0
3 years ago
In​ 2008, as a financial crisis began to unfold in the United​ States, the FDIC raised the limit on insured losses to bank depos
Tomtit [17]

The FDIC stands for Federal Deposit Insurance Company.

By raising the limit on insured losses the FDIC helps stabilize the system by instilling confidence.

If the consumer knows that their savings accounts are protected up to $250,000 they will be encouraged to spend money during a time of crisis.

Because of the increased limit, there is less probability that there would be something called

"a run on the bank."

8 0
3 years ago
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