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Ilia_Sergeevich [38]
3 years ago
12

You are a manager for a monopolistically competitive firm. From experience, the profit-maximizing level of output of your firm i

s 100 units. However, it is expected that prices of other close substitutes will fall in the near future. How should you adjust your level of production in response to this change
Business
1 answer:
Paraphin [41]3 years ago
5 0

Answer:

hi your question lacks the required options here is the complete question and options

You are a manager for a monopolistically competitive firm. From experience, the profit-maximizing level of output of your firm is 100 units. However, it is expected that prices of other close substitutes will fall in the near future. How should you adjust your level of production in response to this change

a. Produce less than 100 units

b. Insufficient information to decide

c. Produce 100 units

d. Produce more than 100 units

Answer : Produce less than 100 units

Explanation:

A monopolistic firm is a firm that has the sole responsibility or sole ownership of the right of production of certain goods and services. and such products are profit maximizing products because the demand for the products determines the price in the market and also the products are produced at marginal cost equaling its marginal revenue.

From experience when the prices of the close substitutes of the product fall the demand for the product will decrease hence its market price will fall therefore it is wise to produce less than the usual 100 units to still maximize profit.

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Holton Company has the following equivalent units for July: materials 20,000 and conversion 18,000. Production cost data are:
miskamm [114]

Answer:

$3.55; $3.13

Explanation:

Calculation to determine what The unit production costs for July are:

Using this formula

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CONVERSION

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Therefore The unit production costs for July are:$3.55; $3.13

6 0
2 years ago
What is the term for a more complex production strategy that combines approaches from more than one basic strategy?
VARVARA [1.3K]
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7 0
3 years ago
Gardner Company expects sales for October of $249,000. Experience suggests that 45% of sales are for cash and 55% are on credit.
yarga [219]

Answer:

$68,475

Explanation:

Data provided

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6 0
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MrRissso [65]

Answer:

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Explanation:

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What types of services would you expect to find at a neighborhood wellness center?
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