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Nitella [24]
3 years ago
11

1. A firm in a competitive market has the following cost structure: Output Total Costs 0 $10 1 $12 2 $15 3 $19 4 $24 5 $30 6 $37

7 $46 8 $55 9 $65 If the market price is $8, how many units should the firm produce to maximize profit? a. 5 units b. 6 units c. 7 units d. 8 units
Business
1 answer:
iogann1982 [59]3 years ago
3 0

Answer:

b. 6 units

Explanation:

Output     Revenue  Costs = Profit  ( Revenue - Costs)

   0                   0         10 =  -10

   1                    8         12 =  -4

   2                   16        15 =   1

   3                   24        19 =   5

   4                   32        24 =   8

   5                   40        30 =   10

   6                   48         37 =   11

   7                   56        46 =   10

   8                   64        55 =   9

   9                   72        65 =    7  

Note: The revenue is calculated by multiplying output by the market price of $8.

The firm should produce 6 units to maximize their profit which is $11.

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Answer:

B. False

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5 0
3 years ago
The difference between a​ firm's operating income and income before taxes is​ _____. The difference between a​ firm's ​before-ta
monitta

Answer: Option A

Explanation: Operating income refers to the income that the company earns from performing its core operations. It is also denoted as EBIT. Thus, the difference between operating income and income after tax is the tax that has been deducted from the operating income.

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3 0
3 years ago
Read 2 more answers
If Patty Shoemaker estimates that her $400 weekly grocery bill will increase at an annual inflation rate of 5%, what should her
balu736 [363]

Answer:

the weekly grocery bill in 4 years is $486.2025

Explanation:

The computation of the weekly grocery bill in four years is shown below:

= Estimated amount × (1 + rate of interest)^number of years

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6 0
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Which of the following expresses the value of a levered firm (VL) in the Static Tradeoff model of optimal capital structure [Not
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Answer:

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Explanation:

The static trade off theory is a theory of capital structure in corporate finance, first proposed by Alan Kraus and Robert H. Litzenberger. The theory emphasizes the trade-offs between the tax benefits of increasing leverage and the cost of bankruptcy associated with higher leverage. The <u>answer is C</u> as we know relative to the unleveraged firm, leverage provides both costs and benefits. The benefits are the tax shields provided by debt.

7 0
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A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On
8_murik_8 [283]

Answer:

Debit : Account Payable $1,600

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Credit : Cash $1,568

Explanation:

The correct journal entry to record the payment on July 28 includes a Debit to Accounts Payable and Credit to Discount and Cash. Cash should be after returns and discount received.

8 0
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