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3 years ago

In the long run for a competitive firm,

Business

1 answer:

Andrei [34K]3 years ago

8 0

Answer:

The correct answer is letter "C": the firm is at the bottom of its short run average cost curve.

Explanation:

Competitive firms are companies that accept the equilibrium price of a given good or service within a market. If they try to raise the price, they will not be able to sell their products. It is said that <em>in the long term a competitive firm is at the bottom of its short-run average cost curve because it portraits the most efficient level of production</em>. That curve shows the optimal least-cost input combination for producing output.

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Drury corporation needs to raise $ 2 comma 300 comma 000. the corporation plans on selling 100 comma 000 shares of $ 23 par valu

ad-work [718]

Net Income before Sale of Shares........................................................$1800000

Additional Income due to sale of shares.............................................$400000

Total Net Income........................................................................................$2200000

Income [email protected]%.........................................................................................($660000)

Net Income After Tax..................................................................................1540000

Total No of Shares.........................................................................................260000

Earning Per Share(Net Income After Tax/No of Shares)......................$5.92

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2 years ago

Record year-end adjusting entries (LO3-3) Below are transactions for Wolverine Company during 2021. On December 1, 2021, Wolveri

marysya [2.9K]

Answer: See explanation

Explanation:

1. Dr Deferred revenue 2,000

Cr. Rent revenue 2,000

2 Dr. Insurance expense 6,600

Cr. Prepaid insurance 6,600

3 Dr Salaries expense 3,000

Cr Salaries payable 3,000

4 Dr Interest expense 250

Cr Interest payable 250

5 Dr Supplies expense 3,900

Cr Supplies. 3900

N. B:

Rent revenue for December was calculated as:

= $4,000 x 1/2

= $2,000

Insurance expense for the current year was calculated as:

= $13,200 x 6/12

= $6,600

Interest expense:

= $15,000 x 10% x 2/12

= $15000 × 0.1 × 2/12

= $250

Supplies expense:

= $1,000 + $3,400 - $500

= $3,900

3 0

3 years ago

The total value of all productive assets multinational enterprises own and control abroad through investment is known as the rel

Sladkaya [172]

Answer:

False

Explanation:

When <u>a multinational organization owns and controls productive assets in foreign countries through investment</u>, it is known as Foreign Direct Investment (FDI) and NOT relative efficiency of production.

FDI may be carried out through mergers and acquisitions, joint ventures and building facilities in other countries.

3 0

3 years ago

If Sam's, a local watering hole, increased the price of a pint of Guinness by 20%, it estimates the number of MBA students purch

Leni [432]

Answer:

Total Revenues would increase because Demand is Inelastic

Explanation:

Demand is buyers ability & willingness to buy at a given price, time.

Elasticity of Demand is quantity demanded responsiveness to price change.

More Elastic Demand means quantity demanded responds highly to change in price. Percentage Change in Quantity Demanded > Percentage Change in Price. Elasticity of Demand [Δ%Q / Δ%P] >1 in this case. Price and Total Revenue (PxQ) are inversely related in this case ; i.e - price rise, TR fall & price fall, TR rise.

Less Elastic Demand means quantity demanded responds less to change in price. Percentage Change in Quantity Demanded < Percentage Change in Price. Elasticity of Demand [Δ%Q / Δ%P] < 1 in this case. Price and Total Revenue (PxQ) are positively related in this case ; i.e - price rise, TR rise & price fall, TR fall.

So: If Sam's Pint price change by 20% leads to demand fall by 4%, the demand is less elastic i.e < 1. Hence, Total Revenue will increase with increase in price.

6 0

3 years ago

Until recently, hamburgers at the city sports arena cost $ 2.50 each. The food concessionaire sold an average of 1750 hamburgers

Artyom0805 [142]

Answer:

(A) p = -0.002x +6; 0 ≤ x ≤ 3000

(B) R(x) = x(6 -0.002x); 0 ≤ x ≤ 3000

(D) (550, 2695), (1730, 4394.20)

(E) P(x) = -0.002x^2 +4.56x -1903

(F) increasing at $2.16 per hamburger

Explanation:

(A) The two-point form of the equation for a line can be used.

y = (y2 -y1)/(x2 -x1)(x -x1) +y1

The two points we have are ...

(x, p) = {(1750, 2.50), (1450, 3.10)}

so the equation is ...

p = (3.10 -2.50)/(1450 -1750)/(x -1750) +2.50

p = 0.6/-300(x -1750) +2.50

p = -0.002x +6

The domain of this function is where x and p are greater than 0. That will be for ...

0 ≤ x ≤ 3000

(B) Revenue is the product of burgers sold (x) and their price (p).

R(x) = xp

R(x) = x(6 -0.002x)

The domain of R(x) is 0 ≤ x ≤ 3000. This is the same as the domain of p(x).

___

(C) The cost function is the sum of fixed costs and variable costs:

C(x) = 1.44x +1903

(D) See the attachment for a graph of cost and revenue. The break-even points are (x, revenue) = (550, 2695), (1730, 4394.20).

(E) Profit is the difference between revenue and cost.

P(x) = R(x) - C(x) = x(6 -0.002x) -(1.44x +1903)

P(x) = -0.002x^2 +4.56x -1903

(F) The marginal profit is the derivative of the profit function:

P'(x) = -0.004x +4.56

P'(600) = -0.004(600) +4.56 = -2.40 +4.56 = 2.16

At a production level of 600, the profit is increasing at a rate of $2.16 per hamburger.

6 0

2 years ago