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3 years ago

If the marginal benefit of an activity is greater than marginal cost of an activety, then you are better off___

Business

1 answer:

zloy xaker [14]3 years ago

3 0

As long as the marginal benefits are higher than the marginal costs you are better off continuing the activity.

Consider the example of eating pizza. Each slice of pizza gives you happiness and helps fill you up (marginal benefit), but each slice also has lots of calories and fat (marginal cost). As long as you are still hungry and getting enjoyment from eating, you should keep eating. But once you reach the point where you are too full then you should stop, because the costs now outweigh the benefits.

You might be interested in

The amount by which government expenditures exceed revenues during a particular year is the:A. public debt.B. budget deficit.C.

slava [35]

Answer:

The correct answer is

B. budget deficit

good luck

4 0

3 years ago

The account that is brought up to date after the closing entries have been journalized and posted is the ____.

yanalaym [24]

Complete/Correct Question:

The account that is brought up to date after the closing entries have been journalized and posted is the ____.

A. Sales account

B. Purchases account

C. Capital Stock account

D. Retained Earnings account

Answer:

D, retained earnings account

Explanation:

Retained earnings can be defined as the accumulated income of a firm, that is retained by firm, after a certain period of time. After a certain time could be after the reporting period.

Simply put, retained earnings can be said to be the amount of income that a firm keeps after a period such as declaring financial reports.

The retained earnings is always reported and recorded in the stakeholder's equity and the company's balance sheets respectively. Retained earnings signify or represent how much of its profits a firm has reinvested itself.

Cheers.

5 0

3 years ago

If a regulatory commission imposes upon a nondiscriminating natural monopoly a price that is equal to marginal cost and below av

denpristay [2]

Answer:

The correct answer is letter "D": The firm must be subsidized or it will go bankrupt.

Explanation:

A subsidy is a benefit given to an individual, business or institution, typically by the government. Subsidies are given to promote a social good or economic policy. The government usually provides subsidies in the form of cash or tax breaks, low-rate loans, and certain types of rebates.

In the example, as the commission sets the price of the monopoly products below the average total cost, it will be translated in losses. Then, a subsidy will be necessary to be provided otherwise the company will file for bankruptcy.

3 0

3 years ago

Allison, a long-time employee at aim corporation is helping william, a new employee; learn the culture of the organization. alli

Dmitrij [34]

Hello!

Q: Alison, a long-time employee at AIM Corporation is helping William, a new employee; learn the culture of the organization. Alison is using the _____________ process.

A: Alison, a long-time employee at AIM Corporation is helping William, a new employee; learn the culture of the organization. Alison is using the Socialization process.

8 0

3 years ago

Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $95,000,000, and a current stock price

aivan3 [116]

Answer:

$12.22 per share

Explanation:

The computation of the stock price one year from now is shown below;

Current EPS = Net Income ÷ Number of shares

= $95,000,000/5,500,000

= $17.2727

Now

P/E Ratio = Market Price per share ÷ Earnings per share

= $14.75 ÷ 17.2727

= 0.8539 times

Now

Revised EPS = $95,000,000 × 1.25 ÷ 8,300,000

= $14.3072

So, the Price is

= 14.3072 × 0.8539

= $12.22 per share

6 0

2 years ago