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anyanavicka [17]
3 years ago
12

Assume price exceeds average variable cost over the relevant range of demand. If a monopolistically competitive firm is producin

g at an output where marginal revenue is $23 and marginal cost is $19, then to maximize profits the firm should A) shut down. B) continue to produce the same quantity. C) decrease output. D) increase output.
Business
1 answer:
ivann1987 [24]3 years ago
3 0

Answer:D) increase output.

Explanation:

The marginal cost  for production and marginal revenue are measures that businesses  use in  determining  the amount of output and the price of  a product that will enable them to maximize profits.

When the marginal revenues  are greater than the marginal cost of production, then the firm is making profit per unit  and should increase its production so as to make  more output until profit is attained.  When Marginal Revenue are lower or less than the marginal cost of production, then the firm is making a loss per unit  and should decrease its production.

Here,  competitive firm is producing at an output where marginal revenue is $23 and marginal cost is $19, then to maximize profits the firm should <u>increase output .</u>

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With free trade, that is, assuming no tariff, the outputs produced by domestic and foreign producers would be:_______.
SIZIF [17.4K]

The Correct 1 unit and 15 units are the outputs produced by domestic and foreign producers with free trade assuming there is no tariff.

<h3>What is a free trade?</h3>

This refers to an international business policies that occurs when goods and services can be bought and sold between countries without tariffs, quotas or other restrictions being applied.

This policy tends to increase the volume of international trade among member countries and also allow them to increase their specialization in their respective comparative advantages.

Hence, in the graph given, the Correct 1 unit and 15 units are the outputs produced by domestic and foreign producers with free trade assuming there is no tariff.

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4 0
2 years ago
At the beginning of his current tax year, David invests $13,410 in original issue U.S. Treasury bonds with a $10,000 face value
vagabundo [1.1K]

Answer:

The amount of income that David will report this year if he elects to amortize the bond premium is $455.94.

Explanation:

This can be calculated as follows:

Interest income = Carrying value of the bond * Yield to maturity…………….. (1)

Where;

Carrying value of the bond = $13,410

Yield to maturity = 3.4%

Substituting the values into equation (1), we have:

Interest income = $13,410 * 3.4% = $455.94

Therefore, the amount of income that David will report this year if he elects to amortize the bond premium is $455.94.

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3 years ago
Which of these images is most likely to portray nonverbal communication?<br><br> please help asap!!
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When Disney relied on licensing agreements with the Oriental Land Company to open its first foreign theme park, Tokyo Disneyland
Phantasy [73]

Answer:

Letter A is correct. <u>Its licensing partner, the Oriental Land Company reaped the windfall, because the partner who bore the risk was also likely to be the biggest beneficiary from any upside gain. </u>

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3 years ago
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