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alexira [117]
3 years ago
7

A profit-maximizing firm in a competitive market is able to sell its product for $7. At its current level of output, the firm's

average total cost is $10. The firm’s marginal cost curve crosses its marginal revenue curve at an output level of 9 units. The firm experiences a
a. profit of more than $27.
b. profit of exactly $27.
c. loss of more than $27.
d. loss of exactly $27.
Business
1 answer:
ser-zykov [4K]3 years ago
4 0

Answer:

d. loss of exactly $27.

Explanation:

Under a competitive firm, a profit-maximizing firm level of output can be find out by equating the marginal revenue with its marginal cost i.e

Marginal revenue = Marginal cost

As we know that

Average total cost = Total cost ÷ Quantity

$10 = Total cost ÷ 9

So, the total cost is

= $10 × 9

= $90

And,

Total revenue = Price  ×  quantity

= $7 × 9

= $63.

So,

Profit = Total revenue - total cost

= $63 - $90

= -$27

This amount comes in a negative which reflects that there is a loss of $27

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Nadell Corporation reported the following data for the month of AprilInventory Beginning Ending Raw Materials $30,000 $32,000 Wo
jeyben [28]

Answer:

COGS= $181,000

Explanation:

Giving the following information:

Beginning Finished Goods= $39,000

Ending Finished Goods= $53,000

Cost of goods manufactured= 234,000 - 39,000= $195,000

<u>To calculate the cost of goods sold, we need to use the following formula:</u>

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 39,000 + 195,000 - 53,000

COGS= $181,000

7 0
3 years ago
In some cases, individuals who start a business have special voting rights that help them exercise more control over the firm. T
Olin [163]

individuals that have special voting rights owns a special class of stock called classified stock.

The classified stock refers to class of common stock that comes with special privileges like dividend rights or enhanced voting rights.

Usually, these stock are issued/owned by individual that started or co-start the business.

The classified stock is used to ensure the company's founders maintain its control over the establish company even without owning the majority of the common stock.

Therefore, the individuals that have special voting rights owns a special class of stock called the classified stock.

Read more about classified stock:

<em>brainly.com/question/23881482</em>

6 0
3 years ago
Sanjeev leases a house from Clara, and the lease has an option contract attached that permits Sanjeev to buy the house if he cho
Aleksandr-060686 [28]

The amount of the option fee need to be on amount agreed to by the parties in order to be legally binding.

<h3>What is a lease agreement?</h3>

A lease agreement is a legal arrangement whereby a person give another person the right to possess the land for use in return for a periodic compensation.

However, the lease agreement can lead to permanent purchase, based on the agreement of the lease.

In conclusion, the amount of the option fee need to be on amount agreed to by the parties in order to be legally binding.

Read more about lease agreement

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8 0
2 years ago
Which inventory method generally results in costs allocated to ending inventory that will approximate their current costs?
emmasim [6.3K]
Which inventory method generally results in costs allocated to ending inventory that will approximate their current costs? FIFO. The FIFO inventory method stands for first-in, first-out. This method allows businesses to keep track of their inventory on an old inventory out before the new inventory basis. The first out inventory is recorded as the first items sold even if they aren't exactly the oldest item.  
4 0
3 years ago
HELP!!!
Anarel [89]

Answer:

About 250 ; 2000 bicycles

Explanation:

Opportunity cost simply means the loss incurred on a certain option when the alternative opruoonos chosen.

The opportunity cost of increasing shoe production from 10,000 to 20,000 pairs

The value of 20,000 (x axis) on the y axis is about 3750

Value of point A in the y - axis = 4000

Hence opportunity cost = (4000 - 3750) = 250 bicycles

B.)

The opportunity cost of increasing shoe production from 50,000 to 60,000 pairs

The value of 60,000 (x axis) on the y axis is about 0

Value of point B in the y - axis = 2000

Hence opportunity cost = (2000 - 0) = 2000 bicycles

3 0
3 years ago
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