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grandymaker [24]
3 years ago
12

Suppose a perfectly competitive firm is producing 37 units output, and the marginal cost of the 37th unit is $3. If the firm can

sell each unit of output for $5 and the firm's revenue is sufficient to cover its variable cost, the firm should:__________.
A. lower its price.
B. decrease production.
C. increase production.
D. raise its price.
Business
1 answer:
sesenic [268]3 years ago
6 0

Answer:

C) increase production.

Explanation:

Competitive firms maximize their accounting profits when marginal revenue (MR) = marginal cost (MC).

In a perfectly competitive market, all the producers and the consumers are price takers, so they cannot change the price of the goods. So changing the sales price is not possible. Since the marginal revenue is greater than the marginal cost, the firm should increase its production output until MR = MC.

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Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $4. In year 2
FromTheMoon [43]

Answer:

The GDP for year 1, year 2, and year 3 is $12, $20 and, $30 respectively.

Explanation:

The nominal GDP is the value of goods and services produced in an economy in a year.

Here, the economy produces only chocolate bars. So we can find nominal GDP by calculating the value of chocolate bars produced in each year.

Nominal GDP for year 1

= Price\ \times\ Quantity

= 3\ \times\ 4

=$12

Nominal GDP for year 2

= Price\ \times\ Quantity

= 4\ \times\ 5

=$20

Nominal GDP for year 3

= Price\ \times\ Quantity

= 5\ \times\ 6

=$30

6 0
4 years ago
ABM Services paid a $2.15 annual dividend on a day it closed at a price of $94 per share. What
OverLord2011 [107]

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3 0
3 years ago
Jamie is single. In 2012, she reported 100,000 of taxable income, including a long-term capital gain of 5,000. What is her gross
Maurinko [17]

Answer:

Gross tax liability is $17,725. None of the options is correct.

Explanation:

For capital gain  tax rate is 15%

-> 5.000 * 15% = 750.

Total gross tax liability  is 16.974.5 + 750 = 17.725

The amount 16.974 is calculated based on the table attached in this answer.

5 0
4 years ago
All of the following are defined as "institutional clients" for purposes of the FINRA communications rules EXCEPT:
lions [1.4K]

Answer:

The correct answer is: All of the above are considered institutional communication clients.

Explanation:

According to the Financial Industry Regulatory Authority (<em>FINRA</em>), an institutional communication refers to one that is attributed to an institutional investor such as a <em>bank, savings, and loan, an insurance company, a registered investment company or adviser, an employee benefit plan with a minimum of one hundred (100) participants, a government entity or a person with at least $50 million of assets for investment</em>.

6 0
3 years ago
Yellco Inc., a toy manufacturer, provided the following information: Domestic unit sales price $50 Unit manufacturing costs: Var
aleksley [76]

Answer:

$540,000

Explanation:

Calculation for The company's differential revenue from the acceptance of the offer

Using this formula

Differential revenue = Number of units of export order * Offer price per unit

Let plug in the formula

Differential revenue=9,000*$60

Differential revenue= $540,000

Therefore the company's differential revenue from the acceptance of the offer is $540,000

4 0
3 years ago
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