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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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A worksheet contains sales dollars for agents with your company. The values are $1,250, $1,090, $985, $985, $880, $756, $675, $6
ivolga24 [154]

Answer:We use the Large Function. the general formula is  =LARGE(first cell:last cell,3) .Please refer to the explanation section for details

Explanation:

Let us assume

A 1 = $1,250,  A 2 = $1,090, A 3 = $985, A 4 = $985, A 5 = $880, A 6 = $756, A 7 = $675, A 78= $650, and A 9 =$600

Using the Large function on excel to return the third largest value, on the formula bar we have the following formula;

=LARGE(A1:A2,3)

7 0
3 years ago
after a bank reconciliation is completed, journal entries are prepared for items in the balance per company's records as well as
BaLLatris [955]

'After a bank reconciliation is completed, journal entries are prepared for items in the balance per the company's records as well as items in the balance per bank statement.

This statement is False.

In accounting, bank reconciliation is the process of reconciling the bank account balances on a company's books with the balances reported by financial institutions in their most recent bank statements. You should check the difference between the two numbers and correct if necessary.

Bank reconciliation is the process of reconciling cash book data with corresponding data on bank statements. This is an important process for the CFO's office and ensures the accuracy of the accounting records.

Bank reconciliation is an important internal control tool and is necessary to prevent and detect fraud. It also helps identify accounting and banking errors by explaining the difference between cash balances on accounting records and bank balances on bank statements.

Learn more about Bank reconciliation brainly.com/question/15525383

#SPJ4

7 0
1 year ago
Trevor always begins the day with a strawberry milkshake (milk (x1 ) and strawberries(x2) mixed in proportion 1:5). His income i
jenyasd209 [6]

Answer:

Check the explanation

Explanation:

Going by the question that the proportion of milk and strawberry for milk shake is 1:5.

If amount of milk is to be X1 that means the quantity of strawberry (X2) will be 5×X1, i.e., X2=5X1... Equation 1

And in addition, the milk and strawberry are complementary consumables as strawberry is of no use without milk and vice versa.

Budget equation will be as follows:

P1×X1+P2×5X1=M.... Equation 2

Given M=200, P1=15 & P2=1

Putting values in Equation 2

15×X1+1×5X1=200

X1=10 & X2=50(from equation 1)

Answer a)

With change in P1 from 15 to 5

Again putting values in Equation 2

5×X1+1×5X1=200

X1=20 & X2=100.

The total change in the demand of milk will increase from 10 units to 20 units.

Answer b)

Strawberry and milk are complementary goods here for that reason there would be no effect on substitution.

Answer c)

Since there will be no effect on substitution, total effect will be equal to income effect.

7 0
3 years ago
In 2014, Elbert Corporation had net cash provided by operating activities of 531,000; net cash used by investing activities of 9
guapka [62]

Answer:

December 31 2014, cash = $486,000

Explanation:

To solve this, we will classify the particulars as either income or expenditure,and find the difference. This is shown below:

Particulars                          income($)                 expenditure($)

operating activities            531,000                     -

investing activities             -                                  963,000

financing activities             585,000                    -

January 1 cash balance     333,000                     -

Total                                   1,449,000                  963,000

∴ net cash available on December 31 2014 = Total income - expenditure

= 1,449,000 - 963,000 = $486,000

7 0
3 years ago
Poseidon Marine Stores Company manufactures special metallic materials and decorative fittings for luxury yachts that require hi
Ksenya-84 [330]

Answer:

C. The company paid a lower cost per hour for labor than allowed by the standards.

Explanation:

direct labor rate/price variance = (AR - SR) x AH

Any favorable variance will result from a lower actual rate than the standard rate. Any difference in the actual number of hours will result in a variance of labor efficiency.

In this case, assuming that actual hours were the same as standard hours, 5,000 x 5 = 25,000 direct labor hours were employed. This means that the actual rate was:

-8,000 = (AR - 15) x 25,000

AR - 15 = -8,000 / 25,000 = 0.32

AR = $14.68

5 0
3 years ago
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