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
Dennis_Churaev [7]
3 years ago
10

Megatron is a competitive firm operating under the following conditions: Price of output is $15, the profit maximizing level of

output is 40,000 units, and the total cost (full economic cost) of producing 40,000 units is $650,000. The firm's only fixed factor of production is as $750,000 stock of capital (a building). If the interest rate available on a comparable risks is 8 percent, should this firm shut down immediately in the short run? Explain your answer.
Business
1 answer:
insens350 [35]3 years ago
7 0

Answer:

Firm should be shut down in short run

Explanation:

We have given price of output = $15

Total economic cost = $650000

Total number of units for maximizing profit level = 40000

So average economic cost =\frac{650000}{40000}=$16.25

As the average economic cost is greater than price of the output

So firm should be shut down in short run

Answer will be firm should be shut down in short run

You might be interested in
Royal Gorge Company uses the gross profit method to estimate ending inventory and cost of goods sold when preparing monthly fina
34kurt

Answer:

The estimated inventory at the end of February is $73400 as shown below

Explanation:

Beginning Inventory $57,800

Plus: Net purchases $120000

Freight-in                     $2,700

Cost of Goods Available for Sale $180500

less: Cost of Goods Sold

Net Sales$180000

Less Estimated Gross Profit $81000

Estimated Cost of Goods Sold $99000

Estimated Inventory before Theft 81500

Less: Stolen Inventory 8,100

Estimated Ending Inventory 73400

Gross profit $180000*45%=$81000

8 0
3 years ago
An investor purchases one municipal and one corporate bond that pay rates of return of 8% and 10%, respectively. If the investor
Alinara [238K]

Answer:

rate of return will be 8% and 8%

Explanation:

given data

municipal bond = 8%

corporate bond = 10 %

marginal tax = 20 %

solution

we know that here

Municipal bond no taxes are levied

hence after tax rate of return will be 8%

and

Corporate bond

after tax rate of return will be

rate of return   = 10% × ( 1 - 0.20 )

rate of return   = 8 %

5 0
3 years ago
Artists often use ____________ to create small and intimate works because the paints are easy to carry and only require a glass
Mazyrski [523]
Artists often use WATERCOLORS to create small and intimate works because the paints are easy to carry and only requires a glass of water. Watercolor is made up of pigment in a vehicle of water and gum Arabic, which is a sticky plant substance that acts as the binder. The most common support for watercolor is paper. Watercolors could readily be taken on outdoor sketching expeditions and are particularly preferred by amateur artists.<span />
4 0
3 years ago
A stock has an average expected return of 10.8 percent for the next year. The beta of the stock is 1.22. The T-Bill rate is 5% a
uranmaximum [27]

Answer: 4.7%

Explanation:

Expected return is calculated as:

= Risk free return + Beta ( Market risk premium)

10.8% = 5% + (1.22 × Market risk premium)

10.8% - 5% = 1.22market risk premium

5.8%/1.22 = market risk premium

Market risk premium = 0.058/1.22

Market risk premium = 0.047

Market risk premium = 4.7%

7 0
3 years ago
Mest Company has 9 employees. FICA Social Security taxes are 6.2% of the first $118,500 paid to each employee, and FICA Medicare
bulgar [2K]

Answer:

Following are the solution to this question:

Explanation:

Please find the complete question and its solution in the attached file.  

7 0
3 years ago
Other questions:
  • A new truck model's television advertisements use images of the vehicle navigating over rough terrain. A popular rock song plays
    14·2 answers
  • Jason has many roles in life. He is an engineering student in college, he's the oldest son in his family, and he earns extra mon
    8·1 answer
  • If you want to move into an upper-level management position with a major hotel chain, would you pursue education? Explain.
    10·1 answer
  • The permanent school fund is managed primarily by what entity?
    13·1 answer
  • Omega locates it global manufacturing in mexico, its global distribution in honduras, and its design in germany. by dispersing d
    13·2 answers
  • If you receive a phone call and the caller asks for personal information, what should you do?
    7·2 answers
  • In 2018, the country of Brazil, had imports of $78.02 billion and had a favorable balance of trade. This means that Brazil had:_
    13·1 answer
  • Fluno Corporation has 1 million shares outstanding at the end of fiscal 2005. Its stock is trading at $15 per share. It issued $
    9·1 answer
  • You bought four put options (each on 100 shares) on EZ stock with an exercise price of $35 per share and an option price of $1.3
    14·1 answer
  • The name of the business and the title of the job advertisement<br>​
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!