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3 years ago

Trout farming is a perfectly competitive industry and all trout farms have the same cost curves.

Business

1 answer:

Diano4ka-milaya [45]3 years ago

4 0

Answer:

(i) The farm can cover its revenue using its total variable cost, therefore the farm will continue producing 200 units

(ii) The farm cannot cover its revenue using its total variable cost, therefore the farm will shut down

(iii) The two relevant points on supply curve will be: (Price = $12 & Quantity = 0) and (Price = $25 & Quantity = 200)

Explanation:

(i)According to given data, When output is 200 but price is $20, this price is equal to ATC, so the farm breaks even. But since this price is higher than AVC of $15, the farm can cover its revenue using its total variable cost, therefore the farm will continue producing 200 units.

(ii) When output is 200 but price is $12, this price is equal to ATC, so the farm makes economic loss. Also, this price is lower than AVC of $15, so the farm cannot cover its revenue using its total variable cost, therefore the farm will shut down.

(iii) The farm's supply curve is the portion of its Marginal cost (MC) curve above the minimum point of AVC. Since price equals MC, the two relevant points on supply curve will be: (Price = $12 & Quantity = 0) and (Price = $25 & Quantity = 200).

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Answer:

involve an immediate cash outlay in order to obtain a future return

require a great deal of analysis prior to acceptance

Explanation:

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3 years ago

Suppose that a person's nominal income rises from $10,000 to $12,000 and the consumer price index rises from 100 to 105. The per

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Answer:

C) Rise about 15 percent

Explanation:

The computation of the increase or decrease of real income is shown below:

Initial income equals to

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= Nominal income ÷ Consumer price index

= $12,000 ÷ 105

= 114.28

So, the real income is increased from

= 114.28 - 100

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3 years ago

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Gnesinka [82]

Answer:

A) Design competition

Explanation:

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In the Excel, or spreadsheet, approach to recording financial transactions, if manufacturing overhead is underapplied by X dolla

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Answer:

False.

Explanation:

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Answer:

c. the GDP deflator and the consumer price index.

Explanation:

Two alternative measures of the overall level of prices are the GDP deflator and the consumer price index.

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3 years ago