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Anvisha [2.4K]
3 years ago
15

Suppose an avocado farm has​ cost: C​ = 0.002q cubed ​+ 22q​ + 750, ​(where q is measured in​ bushels) and the rental cost of la

nd is zero so the average cost curve includes only the​ farm's costs of​ labor, capital,​ materials, and energylong dashnot land. Marginal cost​ is: MC​ = 0.006q2​ + 22. This cost structure is representative of all firms in this industry. The market price per bushel of avocados is ​$38. The​ firm's profit maximizing output ​(rounded to one decimal​ place) is A. 20.0 units. B. 79.6 units. C. 51.6 units. D. 89.4 units. In the​ long-run, we would expect the market price of avocados​ to: A. decrease. B. remain unchanged. C. increase. D. equal zero.
Business
1 answer:
Nesterboy [21]3 years ago
3 0

Answer:

The​ firm's profit maximizing output is 51.6 units. The right answer is C

In the​ long-run, we would expect the market price of avocados​ to equal zero. The right answer is D

Explanation:

In order to Calculate The​ firm's profit maximizing output we would have to use the following formula:

MC = Price

Therefore, 0.006q∧2 + 22 = 38

0.006q∧2 = 38 - 22

0.006q∧2 = 16

q∧2 = 16/0.006

q∧2 = 2666.66

q = 51.6

The​ firm's profit maximizing output is 51.6 units.

A perfectly competitive firm earns zero economic profit in the long-runso, In the​ long-run, we would expect the market price of avocados​ to equal zero,

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irinina [24]

Answer:

The manager should pick project B

Explanation:

To determine what decision the manager should make, the NPV of both projects should be calculated.

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator

NPV for project A

Cash flows:

Year 0 = $-335,000

year 1 = $140,000

year 2 = $150,000

year 3 = $100,000

I = 6%

NPV= $14,536.87

NPV for project B

Cash flows:

Year 0 = $-365,000

year 1 = $220,000

year 2 = $110,000

year 3 = $150,000

I = 6%

NPV= $66,389.67

Both projects are profitable but because the firm uses capital rationing , the manager has to pick the now profitbale project, which is project B.

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

7 0
3 years ago
When calculating loan payments, to show a down payment toward the purchase of an asset, you must adjust the __________ argument
Paha777 [63]

When calculating loan payments, to show a down payment toward the purchase of an asset, you must adjust the pv argument of the financial function.

What is pv argument?

The following arguments are used with the PV function rate: The interest rate per compounding period (necessary argument). The monthly interest rate on a loan with a 12% yearly interest rate and monthly payments would be 12% divided by 12 or 1%. The rate would then be 1%.

What is financial function?

In a firm, the functions used to obtain and manage financial resources in order to make a profit are referred to as the finance function. It generates pertinent financial resources and information, enhancing the effectiveness of other corporate operations and activities such as planning and decision-making.

Learn more about financial function: brainly.com/question/13169279

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7 0
1 year ago
Lily wants to build a business. She has very little capital. She does, however, have a partner with which she could run a busine
Ede4ka [16]
It’s A.little capital
8 0
2 years ago
You are assigned as the manager of risk management project for Health Network, inc. The attached case study provides brief intro
Grace [21]

Explanation:

<em>Structure of the information systems in Health Network:</em>

-Software: It is made up of 1000 production servers that make it possible for users to access the different services through the web.

-Hardware: It is made up of the three data centers that are the sites or facilities that contain the information systems, we can also include the 650 corporate laptops and mobile devices.

-Personal: These are the users who receive the benefits, such as all the potential clients, the doctors who provide their services, and all the personnel who work in the data centers.

<em>Main objective and scope of the project in Health Network:</em>

 

A risk mitigation plan must be developed that allows to face the various threats previously identified.

As the main scope of the project, a BCP (business continuity plan) must be developed that allows employees to continue working remotely and safely from the web.

A computer strategy should be considered that allows employees to access the payroll and accounting application from their homes during winter storms.

6 0
2 years ago
Montclair Corporation had current and accumulated E&amp;P of $500,000 at December 31, 20X3. On December 31, the company made a d
siniylev [52]

Answer:

The tax consequences of the distribution to Montclair in 20X3 would be a $150,000 gain recognized and a reduction in E&P of $175,000.

Explanation:

The distribution company distinguishes profit on the distribution, which is included in E&P netting of tax and decreases E&P by rhe lands fair market value fewer the liability believed by the shareholders.

Therefore, The tax consequences of the distribution to Montclair in 20X3 would be a $150,000 gain recognized and a reduction in E&P of $175,000.

3 0
3 years ago
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