All categories

3 years ago

Suppose a perfectly competitive firm's total cost of production (TC) is:

Business

2 answers:

Ksivusya [100]3 years ago

8 0

Answer:

P = 3q^2 - 8q + 60 for prices above $56

Explanation:

The firm's short run supply curve is the portion of its marginal cost curve. The firm's marginal cost of production is the change in its total cost of production from producing one additional unit. The firm's short run supply curve lies above its average variable cost curve. If the price in market rises the firm will sell more products. The short run supply curve is upward sloping because quantity supplied increases when the prices are increased.

deff fn [24]3 years ago

7 0

Answer:

The firm's short-run supply curve is P = 3q^2- 8q + 60 for prices above $56

Explanation:

Given Data;

TC(q) = q^3 - 4q^2 + 60q + 15

MC = 3q^2 - 8q + 60

But,

Fixed Cost, FC = TC(0) = 15

Therefore, the variable cost becomes

VC(q) = TC(q) - FC

= q^3 - 4q^2 + 60q

Since average variable cost = VC(q) /q, the equation becomes;

AVC(q) = VC(q)/q

= (q^3 - 4q^2 + 60q)/q

= q^2 - 4q + 60

When the curve is at a minimum point, AVC'(q) = 0

Therefore,

q2 - 4q + 60 = 0

2q - 4 + 0 = 0

2q = 4

q = 4/2

q = 2

Since q = 2,

AVC(2) = 22 - 4*2 + 60 = 4 - 8 + 60 = $56

Therefore, the short-run supply curve of the firm is P = 3q2- 8q + 60 for prices above $56

You might be interested in

Dextra Computing sells merchandise for $10,000 cash on September 30 (cost of merchandise is $8,000). Dextra collects 9% sales ta

sammy [17]

Answer:

1. Dr Cash $10,900

Cr Sales $10,000

Cr Sales Taxes Payable $900

2. Dr Cost of Goods Sold $8,000

Cr Merchandise Inventory $8,000

3. Dr Sales Taxes Payable $900

Cr Cash $900

Explanation:

1. Preparation of the journal entry to record the cash sale and 9% sales tax

Dr Cash $10,900

($10,000+$900)

Cr Sales $10,000

Cr Sales Taxes Payable $900

($10,000*9%)

(To Record the cash sale and 9% sales tax)

2. Preparation of the Journal entry to record the cost of September 30th sales

Dr Cost of Goods Sold $8,000

Cr Merchandise Inventory $8,000

(To Record the cost of September 30th sales)

Preparation of the journal entry to show Dextra sending the sales tax on this sale to the government on October 15

Dr Sales Taxes Payable $900

Cr Cash $900

($10,000*9%)

(Being the sales tax on the sale to the government on October 15)

3 0

2 years ago

When manufacturing overhead costs are assigned to production in a process cost system, it means that

Colt1911 [192]

Answer:

<em>When manufacturing overhead costs are assigned to production in a process cost system, it means that the business uses absorption costing system.</em>

Explanation:

When manufacturing overhead costs are assigned to production in a process cost system, it means that the business uses absorption costing system.

Absorption costing system is that where units of products and inventories are valued using full cost. Full cost implies that each product would be charged for an amount of the<em> fixed production overhead </em>in addition to the variable cost.

The fixed overhead is charged using a predetermined overhead absorption rate.

8 0

3 years ago

What is confidential information

dem82 [27]

Answer:

Information that is top secret vip your eyes only

6 0

2 years ago

Read 2 more answers

If accrued salaries were recorded on December 31 with a credit to Salaries Payable, the entry to record payment of these wages o

nikdorinn [45]

Answer:

c. A debit to Salaries Payable and a credit to Cash.

Explanation:

As on December 31, entry to record the expense of Salaries which is accrued and not paid is

Salary A/c Dr.

To Salaries Payable

Now on the closing date, of previous year there is a liability outstanding of Salary Payable.

In the next year on 5th January the salary outstanding in opening balance sheet is paid.

For this, the payment will be made and accordingly, cash will be reduced.

Accordingly liability will be reduced for this, liability will be debited.

Therefore, correct option is

c. A debit to Salaries Payable and a credit to Cash.

6 0

3 years ago

All of the following are documents used for inventory control except:______.

damaskus [11]

Answer:

c. a petty cash voucher.

Explanation:

For controlling the inventory following documents are to be used i.e.

1. Purchase order

2. Vendor invoice

3. Receiving report

These three documents we called as an voucher package

But it does not involved the petty cash voucher

Therefore the correct option is c.

And, the same is to be considered

8 0

2 years ago

Suppose a perfectly competitive​ firm's total cost of production​ (TC) is:

Suppose a perfectly competitive firm's total cost of production (TC) is: