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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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A company that manufactures a device that is heavily regulated by the government and has to undergo a rigorous pre-market approv
Vikki [24]

Answer:

preemption

Explanation:

Preemption -

It refers to the process of getting some prior claim , is referred to as preemption .

It is basically some rights which a company takes before any other company getting it .

Some pre approved process is known as preemption , these claims are required to be taken .

Hence , from the given scenario of the question ,

The correct answer is preemption.

7 0
3 years ago
HURRY IM BEING TESTED!!!!!! Which job in the Finance career cluster is ideal for a person with a master’s degree?
erma4kov [3.2K]

Answer:

i think it would be loan officer but im not sure sorry if thats wrong

4 0
3 years ago
Read 2 more answers
To calculate a year-to-year percentage change in any financial statement line item such as sales, you should take the current ye
Makovka662 [10]

Answer:

the prior year's amount

Explanation:

In financial statements when measuring performance increase the percentage change in various financial statement lines are usually used.

Financial statement lines are individual items on financial statements. For example current assets, current liabilities, and sales.

The percentage change aims to compare increase in a financial statement line item against the previous year's amount.

This will give an idea of how much increase has occurred on previous performance.

So it is calculated by deducting previous year amount from current year amount, then divide by the previous year amount and multiply by 100

7 0
3 years ago
On November 23, Elder Lift Corporation, a wholesaler of hydraulic lifts, acquired land in ex- change for 12,500 shares of $25 pa
Georgia [21]

Answer:

Journal Entry to be recorded

DR.    Land                                           $475,000

                 Cr.     Common stock                          $312,500

                 Cr.     Add-in-capital common stock  $162,500

Explanation:

Number of Shares = 12,500 shares

Share Market price = $38

Share Par Value = $25

Total value of property to be recorded= 12,500 x $38 = $475,000

Common stock value at par = 12,500 x $25 = $312,500

Add-in-Capital common stock value = $475,000 - $312,500 = $162,500

Property will be recorded as the total value of exchange which is $475,000. On other other hand the common stock value will be recorded in two parts common stock at par value and add-in-capital common stock over par value.

7 0
3 years ago
Assume an annual interest rate of 8%. You have $1. What is the value of the $1 one year in the future
seropon [69]

Answer:

the future value is $1.08

Explanation:

The computation of the future value is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^number of years

= $1 × (1 + 0.08)^1

= $1 × 1.08

= $1.08

Hence, the future value is $1.08

3 0
3 years ago
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