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ElenaW [278]
3 years ago
14

Chuck Diesel Burger is a food truck in Houston, Texas. Imagine that Chuck Diesel Burger’s minimum average total cost (ATC) is $3

.75 and that its minimum average variable cost (AVC) is $2.50. Assume there are no barriers to entry into or exit from the food-truck market. Chuck Diesel Burger will suffer a loss but still produce if the price is equal to:
$4.00.$3.75.$3.00.$2.50.$2.00.
Business
1 answer:
Trava [24]3 years ago
5 0

Answer:

The answer is: $3.00

Explanation:

In order for Chuck Diesel Burger to make a profit it must sell its product at ˃$3.75.

If it sells its product at $3.75 it will break even (costs = revenue).

If its price is <3.75 but ˃$2.50 it will lose money but still produce, since its revenue is ˃ than its variable cost.

Any price ≤$2.50 would make it impossible for Chuck Diesel Burger to continue production since its revenue is < variable production costs.

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Which of the following identifies how much product transportation cuts into farmers' profits?
11Alexandr11 [23.1K]

Answer:

It can be 13 to 62 percent of retail sales.

Explanation:

Farmers grow crops after their day and night of struggle. They earn their livelihood by selling these crops. The transportation cost to commute crops from the farmers land to the retail market. If this transportation cost is minimized the farmers can earn better profit and raise their living standard. Also with better earnings farmers will be able to adopt new technological methods to grow agricultural products.

6 0
3 years ago
Butcher Co. sold 10,000 toys in Year4 for $20 each. The company expects that 5% of the toys will be returned under warranty for
algol13

Answer:

Butcher's warranty expense for Year 4 is $10,000

Explanation:

Since in the question, it is given that 5% of the toys are returned, and the warranty expenses should be charged on the replacement service or repair service. Even, the question has said the same.

So, the warranty expense computation is shown below:

= Sale units of toys × selling price per toy × returned percentage

= 10,000 toys × $20 × 5%

= $10,000

The warranty obligation part is irrelevant. Thus, we don't consider in the computation part. Therefore, it is ignored.

Hence, Butcher's warranty expense for Year 4 is $10,000

4 0
3 years ago
In a local​ market, the monthly price of Internet access service decreases from ​$20 to ​$10​, and the total quantity of monthly
faust18 [17]

Answer:

1.79

Explanation:

The demand is elastic

5 0
3 years ago
What is the final step in marketing a product?<br>​
Allisa [31]

Answer:

Positioning: The final step is to position your product in a way that will appeal to the needs of your target audience and encourage them to buy your product.

4 0
3 years ago
Read 2 more answers
In addition to the above costs, if Quirch produces part PQ107, it would have a retooling and design cost of $9,800. The relevant
dem82 [27]

Answer:

$149,000

Explanation:

Computation for the relevant costs of producing 2,400 units of product PQ107 internally

Using this formula

Relevant Costs = Incremental Costs = Incremental Variable Costs + Incremental

Let plug in the formula

Relevant Costs = [(2,400 units × $31/unit) + (2,400 units × $19/unit) + (2,400 units × $8/unit)] + $9,800

Relevant Costs=$74,400+$45,600+$19,200+$9,800

Relevant Cost =$149,000

Therefore the relevant costs of producing 2,400 units of product PQ107 internally are $149,000

7 0
3 years ago
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