1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
marshall27 [118]
3 years ago
15

A firm is producing 24 units of output. At the 24th unit of output, marginal revenue is $5, and marginal cost is $4; at the 25th

unit of output, marginal revenue is $4.50, and marginal cost is $4.50; at the 26th unit of output, marginal revenue is $4, and marginal cost is $5. This firm made the correct choice by producing only 24 units of output and then stopping. True / False.
Business
1 answer:
agasfer [191]3 years ago
6 0

Answer:

False.

Explanation:

(1) Units produced = 24 units of output

At the 24th unit of output,

Marginal revenue = $5

Marginal cost = $4

MR ≠ MC

At the 25th unit of output,

Marginal revenue = $4.50

Marginal cost = $4.50

MR = MC

At the 26th unit of output,

Marginal revenue = $4

Marginal cost = $5

MR ≠ MC

A firm maximizes its profit at a point where the marginal revenue is equal to the marginal cost i.e. MR = MC.

It is clear from the above scenario that this firm doesn't stop at 24 units of output because at this point of production profit maximizing condition is not fulfilled which means MR ≠ MC.

This firm should stopped at 25 units of output where marginal revenue is equal to the marginal cost from the 25th unit of output.

You might be interested in
On October 1, 2019, Priscilla purchased a business. Of the purchase price, $92,000 is allocated to a patent and $552,000 to good
Firdavs [7]

Answer:

$10,730

Explanation:

1. Patent: $92,000/15 years = $6,133

$6,133 × 3/12 = $1,533

2.Goodwill: $552,000/15 years= $36,800

$36,800 × 3/12 = $9,200

Total: $1,533 + $9,200= $10,733

Approximately $10,730

3 0
3 years ago
Jakarta Company is a service firm with current service revenue of $500,000 and a 40% contribution margin. Its fixed costs are $8
Lady_Fox [76]

Answer and Explanation:

The computation of the margin of safety is shown below:

As we know that

margin of safety = Actual sales - break even sales

For Jakarta, it is

= $500,000 - ($80,000 ÷ 0.40)

= $500,000 - $200,000

= $300,000

And, for maldives, it is

= $6,620,000 - ($2,151,500 ÷ 50%)

= $2,317,000

7 0
3 years ago
The __________ phase is probably the single most important determinant of shareholder value creation in mergers and acquisitions
BARSIC [14]

Answer: Post acquisition integration (B)

Explanation:

Post acquisition integration is a complex process of rearranging and combining businesses to materialize the potential efficiencies and synergies which usually motivate acquisitions and mergers.

The process, is usually lengthy and resource intensive. The importance of post acquisition integration cannot be understated, as it allows an acquiror to acquire the long-term value that he or she seeks from the transaction. It is a vital determinant on value creation for the shareholders in acquisitions and mergers.

6 0
3 years ago
Read 2 more answers
Silicon Valley in California is the world center for the computer and semiconductor industry and has many of the world's major c
laila [671]

Answer:

The correct answer is D. externalities.

Explanation:

An externality is defined as that situation or group of situations that determine that a service good is not reflected at its real market price. In this example, the computer industry is so close that they do not know for sure the benefits they have when offering their goods, and it becomes an advantage in the sense that due to its close location it is possible to establish agreements to manage prices and not enter into direct market competition.

7 0
3 years ago
In a portfolio problem, X1, X2, and X3 represent the number of shares purchased of stocks 1, 2, and 3, which have selling prices
vaieri [72.5K]

Answer:

The correct solution is "x_1 \leq 0.35 (x_1 + x_2 + x_3)".

Explanation:

According to the question,

Let,

For stock 1,

The number of shares to be purchased will be "x_1".

For stock 2,

The number of shares to be purchased will be "x_2".

For stock 3,

The number of shares to be purchased will be "x_3".

then,

The cumulative number of shares throughout stock 1 would be well over or equivalent towards the approximate amount of all the shares or stocks for the set limit.

i.e., x_1+x_2+x_3

Thus the correct equation is "x_1 \leq 0.35(x_1+x_2+x_3)".

7 0
3 years ago
Other questions:
  • An ______ is a period of low economic activity and rising unemployment.
    5·2 answers
  • Camille's Creations and Julia's Jewels both sell beads in a competitive market. If at the market price of $5 both are running ou
    7·1 answer
  • To attend a winter concert presented by the community chorus, every person had to donate one unwrapped toy at the concert hall d
    8·1 answer
  • When benchmarking a process, it is important to choose another industry similar to yours, so the results will be comparable. Tru
    9·1 answer
  • The three contemporary management perspectives are the ______ viewpoints.
    11·2 answers
  • Consent of the client before completion of a trade made between the firm and a client must be made when A) an investment adviser
    12·1 answer
  • With the proliferation of data mining analysis due to scanner data with tens of thousands of records, online surveys that garner
    10·1 answer
  • When footwear has greater traction, what does this mean?
    6·2 answers
  • Economists Henry Saffer of Kean University, Frank J. Chaloupka of the University of Illinois at Chicago, and Dhaval Dave of Bent
    14·1 answer
  • You own a portfolio that has $2,100 invested in Stock A and $3,200 invested in Stock B. If the expected returns on these stocks
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!