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Tpy6a [65]
4 years ago
15

If a firm in a purely competitive industry is confronted with an equilibrium price of $5, its marginal revenue: will be less tha

n $5. may be either greater or less than $5. will be greater than $5. will also be $5.
Business
1 answer:
Olegator [25]4 years ago
8 0

Answer:

will also be $5.

Explanation:

Marginal revenue is an increase in revenue as a result of increase in sells by one unit.

Equilibrium price is the price at which the quantity of goods supplied is the same as the quantity of goods demanded.

For a firm that is a competitor, it has a small market and the quantity of goods produced and sold has no effect on the price. Therefore price elasticity of demand is negative infinity, and marginal revenue would be the same as the equilibrium price.

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What is strategy implementation what questions must strategy makers consider to begin the imlimentation process?
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The approach to cost management that calls for setting cost reduction goals across numerous stages such as product introduction,
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A basic tenet of variable costing is that fixed manufacturing overhead costs be currently expensed. What is the rationale behind
kari74 [83]

Answer:

C. Allocation of fixed manufacturing costs are arbitrary at best.

Explanation:

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6 0
3 years ago
The manager at​ Tom's Taxidermy expects to sell 1,000 units at $70 each unit. In order for the manager to​ breakeven, the manage
STatiana [176]

Answer:

A.$63,000

Explanation:

The margin of safety is defined as the difference between the actual sales volume and the breakeven volume.

In this case, Tom's Taxidermy expects to sell 1,000 units at $70 each and their breakeven volume is 100 units, the margin of sales, in dollars, is:

MS = (1,000-100)*\$70\\MS=\$63,000

The answer is A.$63,000.

6 0
3 years ago
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