1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
stiv31 [10]
3 years ago
9

A purely competitive firm finds that the market price for its product is $30.00. It has a fixed cost of $100.00 and a variable c

ost of $17.50 per unit for the first 50 units and then $35.00 per unit for all successive units.
Does price exceed average variable cost for the first 50 units? (Click to select)YesNo

What is the average variable cost for the first 50 units?

Instructions: Round your answer above to two decimal places.

Does price exceed average variable cost for the first 100 units? (Click to select)NoYes

What is the average variable cost for the first 100 units?

Instructions: Round your answers to two decimal places.

What is the marginal cost per unit for the first 50 units? $ per unit for the first 50 units.

What is the marginal cost for units 51 and higher? $ per unit for subsequent units.

For each of the first 50 units, does MR exceed MC? (Click to select)NoYes

For the units 51 and higher does MR exceed MC? (Click to select)YesNo

What output level will yield the largest possible profit for this purely competitive firm?

Producing ________-- units will maximize profit
Business
1 answer:
Alinara [238K]3 years ago
4 0

Answer:

Yes $30 agsinst $19.50

The variable cost for the first 50 untis is $17.50

Yes $30 against $27.25

average variable cost for the first 100 units $26.25

Marginal cost for the first 50 units: 17.50 which is lower than marginal revenue

from 51 units and subsequent untis: 35 which is higher than marginal revenue

It will produce 50 units achieving $525 of profit

Explanation:

$100 fixed cost /50 units + 17.50 = 19.50 average cost

selling price: $30

100 fixed cost + 17.50 x 50 + 35 x 50 = 2725

total cost 2,725 / 100 units = 27.25 unit average cost

selling price $30

($17.50 x 50 + $35 x 50)/100 = 26.25

After the 50untis our profit will decrease as the marginal revenue is lower than marginal cost thus, we stuop production at the 50 units:

50 x 30 - 100 fixed cost - 17.50 x 50 variable cost = 525 profit

You might be interested in
Slinky Company purchased merchandise on June 10, 2021, at a price of $26,000, subject to credit terms of 4/10, n/30. Slinky uses
vampirchik [111]

Answer:

The answer is given below;

Explanation:

June 10.

Inventory    (26,000*.96)                Dr.$24,960

Accounts Payable                                                   Cr.$24,960

2.If payment is made on June 18,2021

Accounts Payable           Dr.$24,960

 Bank                                Cr.$24,960

3. If payment is made on July 8,2021

    Inventory  (26,000-24,960) Dr.$1,040

   Accounts Payable                  Cr.$1,040

    Accounts Payable (1,040+24,960) Dr.$26,000

    Bank                                                 Cr.$26,000

As the credit period of 10 days  for discount was not availed, therefore full amount payment will be made.

4 0
3 years ago
How can the use of new technology in industry benefit the US government
ahrayia [7]

Answer:they can track things

Explanation: if they need info all they need to do is hack

8 0
3 years ago
Suppose that the market for athletic shoes is initially in equilibrium at point A. Further suppose the demand for athletic shoes
elixir [45]

Answer: Correct. When there is an increase in supply and an increase in demand, the new equilibrium quantity increases but whether the equilibrium price increases or decreases is unknown.

Explanation:

When the demand for the shoes increased, it had the effect of shifting the demand curve to the right. At the same time, with six more firms coming into the market, the supply increased as well which had the effect of shifting the supply curve right as well.

The new equilibrium as a result of these movements will see the quantity increase. However, due to the shift of both the supply and the demand curve in the same direction, it is uncertain if the price will change or not.

The general rule is that if the rise in supply is more than rise in demand then the price will decrease. If they rise by the same amount then price will remain the same. It shows therefore that if both supply and demand rise at the same time, the effect on equilibrium price is unknown.

3 0
3 years ago
The pedals of the bicycle should have reflectors on them that can be seen from<br> feet away
iragen [17]
The tires and the pedals and on the helmet
4 0
3 years ago
Fiscal policy is Question 20 options: the money supply policy that the Fed pursues to achieve particular economic goals. the spe
laiz [17]

Answer:

the spending and tax policy that the government pursues to achieve particular macroeconomic goals.

Explanation:

Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.

Fiscal policy typically includes the spending and tax policy that a government pursues in order to achieve particular macroeconomic goals such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.

According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.

Generally, an economy will return to its original level of output (production) and price level when the short-run aggregate supply curve falls (decreases) and no changes in monetary and fiscal policies are implemented.

7 0
3 years ago
Other questions:
  • You must evaluate the purchase of a proposed spectrometer for the R&amp;D department. The base price is $60,000, and it would co
    7·1 answer
  • On January 1, 2018, the general ledger of Dynamite Fireworks includes the following account balances: Accounts Debit Credit Cash
    9·1 answer
  • In 1990 a person is 15 years old. in 1995, the same person is 10 year old. how can this be
    12·2 answers
  • Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylen
    14·1 answer
  • Who is responsible for the financial consequences of a minor's driving?
    5·1 answer
  • During the 16th and 17th centuries many European countries adopted the belief that the best way to have a prosperous country was
    13·1 answer
  • On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost
    14·1 answer
  • 1. Exhibit 1.1; USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
    13·1 answer
  • What concept is developed from an orderly, predictable environment versus a disorderly, irregular environment and is characteris
    6·1 answer
  • you are considering starting a business to provide high quality bookkeeping services targeted to restaurants and other food serv
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!