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grandymaker [24]
2 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]2 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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Administrators of crawford county's memorial hospital are interested in identifying the various costs and expenses that are incu
Kryger [21]
A. The items that fall under the DIRECT MATERIAL category include the following:
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2. Electricity cost for the X ray department.
3. Maintenance and repair on the X ray machine.
4. X ray department supplies.
The items that fall under the DIRECT LABOUR category include the following:
1. Salaries of the X ray machine technician.
2. Salary of the X ray technicians' supervisor.
The items that fall under the SERVICE OVERHEAD category include the following:
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2. Property taxes on the hospital building.
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B. The costs that are incurred during the production of a good or service are usually divided into three categories, which are direct material, direct labour and overhead costs.
Direct materials refer to those materials used in the production process which can be traced to a particular unit or department. A good example of a direct material is the raw materials used in the production unit for the production of a particular product.
Direct labour refers to the salaries and wages of those employees that are directly involved in the production process or in carrying out a particular operation. An example of a direct labour for the production of chocolates is the salary of those workers in the production unit.
Overhead cost refers to all other costs that are incurred during the process of production.These costs can not be traced to a specific department per say, but it cover the whole business unit. Overhead cost is of two types: administrative and manufacturing overheads. Examples of overhead costs are rent, utilities, insurance, depreciation, etc.

5 0
3 years ago
Ward and June are in the 32% tax bracket. A bond of Dell Computer Corporation with a face value of $10,000 is included in their
polet [3.4K]

Answer:

Tax Savings = 200

Explanation:

If Ward and June carry the bond, tax would be:

⇒ Interests * tax rate

⇒ 1000 * 32% = 320

They gift bond to their son, Wally, whose tax would be:

⇒ Interests * tax rate

⇒ 1000 * 12% = 120

The tax savings related to the transfer of Bond is:

⇒ 320 - 120 = 200

5 0
2 years ago
Read 2 more answers
When an entire job is broken down into a number of steps, rather than being done by one individual, and each step is completed b
iragen [17]

The correct answer is work specialization. This is also known as division of labor in which this is being referred in regards with the degree of an organization that are likely to have a division of individual task into separate jobs.

7 0
3 years ago
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Three employees believe that their pay is too low. One of them quits, the second complains to management about the low pay, and
Charra [1.4K]

Answer and explanation:

The EVLN (Exit, Voice, Loyalty, Neglect) model explains how employees react differently in front of dissatisfaction at work. In such a way:

  • Exit:<em> implies quitting or requesting a change of roles within the same organization. </em>
  • Voice: <em>involves providing constructive suggestions about a stressful situation. </em>
  • Loyalty:<em> implies waiting for the issue to be solved by others. </em>
  • Neglect:<em> involves reducing labor efficiency to harm the company's performance. </em>

Thus, in the example, the<em> exit (employee who quits), voice (employee who complains), </em>and<em> loyalty (employee who does nothing)</em> reactions are used by employees even if they share the general idea that payments are low.

4 0
3 years ago
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