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Dennis_Churaev [7]
4 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]4 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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Which of the following is not an assumption of the decision-making process followed by consumers to maximize utility? rev: 04_09
Anton [14]

Answer:

The correct answer is d.The consumer does not consider the prices of the products.

Explanation:

The concept is simple. The law of supply says that the entrepreneur is willing to produce more if he can sell more, because his personal ambition for profitability leads him to this point. The law of demand says that the buyer is willing to buy at the price that he considers “fair”, and the lower it is, the more demand he will have, not only for the issue of the sense of balance between cost and benefit, but for the same income distribution: there are more people with less income.

4 0
4 years ago
A price maker Group of answer choices faces a horizontal demand curve. is a seller that searches for good employees and pays the
Tatiana [17]

Answer: is a seller that has the ability to control to some degree the price of the product it sells.

Explanation:

A price maker is a firm with the ability to influence the market price of its goods or services.

Features of a price makers

1. They are usually monopolies

2. They have a downward-sloping demand curve

3 The goods they produce do not have perfect substitutes,

5 0
3 years ago
City A, City B, and City C are cooperating to build a community center catering to the three cities. Seats on the 10-member comm
muminat

Answer:

city A = 3 members in the committee

city B = members in the committee

city C = 4 members in the committee

Explanation:

City A: 18,000 people

City B: 21,000 people

<u>City C: 22,000 people</u>

total 61,000 people

A seat in the committee will be assigned for every 6,100 people

city A = 18,000 / 6,100 = 2.95 ⇒ city A will get 2 + 1 = 3 members in the committee

city B = 21,000 / 6,100 = 3.44 ⇒ city B will get 3 + 0 = 3 members in the committee

city C = 22,000 / 6,100 = 3.61 ⇒ city A will get 3 + 1 = 4 members in the committee

2 + 3 + 3 = 8, there were 2 remaining committee members that should be divided using the size of the remainders: 0.95 > 0.61 > 0.44

8 1
4 years ago
Given this set of daily service operations, and assuming a processing order of A-B-C-D-E: Service Operation Number of Daily Reps
leonid [27]

Answer:

A.Given this set of daily service operations, and assuming a processing order of A-B-C-D-E: Service Operation Number of Daily Reps A 32 B 24 C 32 D 28 E 12 a. Give one reason that each arrangement might be preferred over the other. b. Determine the number of repetitions for

B.

Step-1: Calculate the units to be processed in one cycle by dividing the daily requirement with number of cycles

Step-2: Assign units per cycle to each cycle

Step-3: Adjust it to accommodate the fractions

C.

Step-1: Calculate the units to be processed in one cycle by dividing the daily requirement with number of cycles,

Step-2: Assign units per cycle to each cycle

The repetitions for each service if two cycles

Explanation: tables in attached file are for questions B and C respectively

3 0
4 years ago
Read 2 more answers
Which of the following statements is the best description of comparative advantage?
torisob [31]

Answer:

D. Each nation should produce those goods that it can produce more efficiently and effectively than other nations, and buy the goods it cannot produce efficiently from other nations

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost ( has greater efficiency in production) when compared with other countries.

I hope my answer helps you

5 0
3 years ago
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