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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

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Biltz Company uses a predetermined overhead rate based on direct labor hours to allocate manufacturing overhead to jobs. During
Fiesta28 [93]

Answer:

manufacturing overhead underallocated for the year $124,102.4

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

we distribute the expecte rate over the cost dirver

582,100 / 135,000 = 4.3185

150400 x 4.3185 = 649502.4 applied overhead

applied - actual = over or underappied

if actual > applied = underapplied

if actual < applied = overhead

525,400 - 649,502.4 = -124,102.4

3 0
3 years ago
Choose the best word or phrase from each drop-down menu. the federal reserve increases the money supply when it is trying to enc
Pie

Because raising the money supply boosts the economy, the optimal sentence from the drop-down box is (i) or (a).

<h3>What happens when federal reserves increase?</h3>

Increasing the money supply has a number of consequences which are:

To boost the economy, the Federal government expands the money supply.

Customers use credit because interest rates are lower when the money supply is high.

The unemployment rate is reduced when the money supply is increased.

When the money supply is increased, the economy generally grows because people have more money to spend.

As the amount of money available increases, loans will become more affordable, encouraging people to take out loans knowing that they will just have to pay lesser interest rates.

To learn more about money supply, refer below

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4 0
2 years ago
Read 2 more answers
Ariana'a bank statement shows a closing balance of $125.18. There are no outstanding checks or deposits. Her checkbook shows a b
arlik [135]

The answer is ATM fee in the amount of $2.75 or C.





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7 0
3 years ago
Read 2 more answers
Samantha works as a marketing manager for a cosmetics manufacturer. She plans to suggest a specific type of business model that
galina1969 [7]

<em>A) Franchise is a business model Samantha have in mind.</em>

Answer: <em>A) Franchise </em>

Explanation:

Franchise is the business model which is adopted by many business organisation for the purpose of business expansion. Where the other new business holders carry out the business using the company's procedure, brand name etc.

Under the same name and business line, the business is carried out by the new reciters and a amount of their profit is earned by the owner of the business. Here in this case Samantha is using Franchise business model.

8 0
3 years ago
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Assume that a speculator purchases a put option on British pounds (with a strike price of $1.50) for $0.05 per unit. A pound opt
gladu [14]

Answer:

-$1,562.50

Explanation:

Calculation to determine The highest net profit possible for the speculator based

Premium of the option = $.05 per unit * (31,250 units)

Premium of the option= -$1,562.50

Therefore Based on the information given and the above calculation The HIGHEST NET PROFIT that will be possible for the speculator will be -$1,562.50

6 0
2 years ago
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