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Sever21 [200]
3 years ago
13

Suppose a price-taking firm produces 400 units at its optimal output level. At that output rate, marginal cost is $200, average

total cost is $240, and average variable cost is $170. The firm will be forced to go out of business in the short run if:​Select one:a. the market price is between $200 per unit and $240 per unit.b. the market price is between $170 per unit and $240 per unit.c. the market price falls below $170 per unit.d. the market price equals $240 per unit.e. the market price equals $200 per unit.
Business
1 answer:
Maslowich3 years ago
7 0

Answer:

C) the market price falls below $170 per unit.

Explanation:

If this firm is a price taker, it means that it is operating in a perfect competition market. In such markets, since the entry and exit barriers are very low or nonexistent, if the equilibrium price falls below the variable cost, the firms should halt production in the short run until the equilibrium price rises again. The firm should resume production only after the equilibrium price exceeds the variable costs.

This situation is only applicable on the short run. On the long run the firm should only produce if the equilibrium price is greater or equal to its marginal cost.

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For a promise or order to be considered negotiable, it must of a necessity be an unconditional order for payment. Unlike deals where satisfaction with the goods being purchased is prerequisite for payment, for a negotiable promise or order, payment cannot depend upon any condition or contract. 

5 0
3 years ago
Mr. Baxter IV, would like to retire in 26 years. He would like to accumulate $1,500,000 at the time of retirement to live a cont
Vinvika [58]

Answer:

Monthly deposit=  $840.74

Explanation:

Giving the following information:

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<u>To calculate the monthly deposit, we need to use the following formula:</u>

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Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (1,500,000*0.0092) / [(1.0092^312) - 1]

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6 0
3 years ago
Imagine you work for a breakfast cereal company that makes prepared products that are served cold. Your company wants to introdu
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Answer:

There are a several ways to try to forecast the most accuarete possible the demand of the product. Some techniques are explained below.

Explanation:

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6 0
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Scenario​ : The average total cost to produce 100 cookies is​ $0.25 per cookie. The marginal cost is constant at​ $0.10 for all
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Answer: D. $20

Explanation:

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= 0.10 * 5

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= $20.00

8 0
2 years ago
2. Why has the U.S. become a spending society?
aleksklad [387]
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