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4 years ago

A perfectly competitive firm will minimize its losses by shutting down when:

Business

1 answer:

Archy [21]4 years ago

3 0

Answer:

A perfectly competitive firm will minimize its losses by shutting down when: P < TFC at the profit-maximizing level of output. P < MC at the profit-maximizing level of output.

Explanation:

A firm will choose to implement a production shutdown when the revenue received from the sale of the goods or services produced cannot cover the variable costs of production. In this situation, a firm will lose more money when it produces goods than if it does not produce goods at all. Producing a lower output would only add to the financial losses, so a complete shutdown is required. If a firm decreased production it would still acquire variable costs not covered by revenue as well as fixed costs (costs inevitably incurred). By stopping production the firm only loses the fixed costs.

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An automobile manufacturer produces and sells the Energy-Saver Car in North America. It also produces and sells the Smart Little

Sergio039 [100]

Answer:

We will get $7680(thousands)

Explanation:

Answer

If we read the given data values in the passage, it is clear that the mean annual number of smart little cars in china is 7500 and the variance is equal to 6400

The variance is given for the number of cars, but not for the profit.

So, we need to convert the numerical value(number of cars) to money value(profit)

it is given that net revenue per car is $1.2 (thousands)

So, multiplying the net revenue by number of cars

we get, variance in profit = 6400*1.2 = $7680 (thousands)

3 0

3 years ago

Trek Company has the following production data for April: units transferred out 40,200, and ending work in process 6,220 units t

Kitty [74]

Answer:

the costs to be assigned to the units transferred out and the units in ending work in process is $562,800 and $49,760 respectively

Explanation:

The computation is shown below:

Cost assign to units transferred out is

= 40,200 units × $4 + 40,200 units × $10

= $160,800 + $402,000

= $562,800

And, the Cost assign to work in progress is

= 6,220 units × $4 + (6,220 units × 0.40) × $10

= $24,880 + $24,880

= $49,760

Hence, the costs to be assigned to the units transferred out and the units in ending work in process is $562,800 and $49,760 respectively

5 0

3 years ago

A corporation issued 5,000 shares of its $1 par value common stock in exchange for land (market value $30,000) and a building (m

olga2289 [7]

Answer:

The correct option is A,Debit Land and Building, $130,000; Credit Common Stock, $5,000; Credit Paid-in Capital in Excess of Par Value, Common Stock, $125,000.

Explanation:

The sum of the two market values of both land and building is $130,000($100,000+$30,000),which would be debited to land and building account to show that the asset has increased due to new acquisition.

In the common stock account the par value of the shares which is $5,000($1*5000) would be credited to it.

The difference between the market value of assets acquired and the common stock amount which is $125,000($130,000-$5,000) would be credited to paid in capital in excess of par account.

3 0

3 years ago

The senior classes at High school A and High school B planned separate trips to the water park. The senior class at High school

Lesechka [4]

Each van carried 11 students and each bus carried 45 students

6 0

3 years ago

On september i5, preet wrote to lila as follows: "i offer to sell you blackacre for $300,000, all cash, closing on november i. P

Gnesinka [82]

Answer:

The contract wasn't formed because of closing of offer due to closing of offeree.

Explanation:

The offeree can only accept the offer if:

1. The Offer is not closed.

2. The offerer is alive.

3. No offerer qualifies age limit.

4. The Offered is in senses which means he is not drunk or suffering from mental illness that affects thinking of what is right or wrong for him.

Clearly from the above conditions the condition 2 is not satisfied here because offerer died before the acceptance of offer. Hence the contract was not formed and Executor did right by refusing to deliver the deed to black-acre in exchange for money.

8 0

3 years ago