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oksian1 [2.3K]
4 years ago
15

A monopolistically competitive firm is currently charging a price of $10 and producing 12,000 units/month. It faces monthly fixe

d costs of $15,000 and has an average variable cost of $6/unit. In the long run, we would expect:a. ​The firm to go out of businessb. ​The price will fall and output will fallc. ​The price will rise and output will falld. ​The price will fall and output will rise
Business
1 answer:
Ipatiy [6.2K]4 years ago
4 0

Answer:

The correct answer is option d.

Explanation:

A monopolistic firm is producing 12000 units at a price of $10 per units.

The average variable cost per unit is $6/unit.

The fixed costs are $15,000.

The average fixed costs will be

=\frac{TFC}{Q}

=\frac{15,000}{12,000}

=1.25

The average total cost is

=average fixed cost+average variable cost

=$(6+1.25) per unit

=$7.25 per unit

Here, the price per unit is greater than average total cost per unit. This means that the firm is having supernormal profits. This will attract other firms to join the market.

In the long run, when new firms enter the market, the market supply will increase leading to a fall in price.

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Answer:

€4,883,000

Explanation:

The computation of cost of sales is shown below:-

Inventory = 35,000 ÷ €12

= 2,917 units

Weighted average cost of inventory

= (2,917 × €12) + (35,000 × €14)

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= €525,004

So weighted average cost = €525,004 ÷ €40,833.33

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So, cost of sales = weighted average cost × sold units

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4 years ago
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4 years ago
The parents of a child diagnosed with Tay-Sachs inquire about progression of the disorder. Which statement by the nurse is accur
Anit [1.1K]

Answer:

The correct answer is <em>The child will experince decreased muscular and neurologic functioning until death occurs</em>.

Explanation:

Tay-Sachs disease is a rare degenerative disease that affects the brain and central nervous system and is hereditary, autosomal recessive (more common in descendants of Hebrews).

It is one of the diseases by lysosomal deposition. Individuals who suffer from it are unable to produce a lysosomal enzyme called hexosaminidase-A that participates in the degradation of gangliosides, a type of sphingolipid, that accumulate and degenerate to the central nervous system. It is included within lipidosis or lipid storage diseases.

5 0
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Alexeev081 [22]

Answer:

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Explanation:

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3 years ago
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