All categories

3 years ago

Choose the correct statement.

Business

1 answer:

grandymaker [24]3 years ago

4 0

Answer:

D) When price is lowered to sell one more unit, the lower price results in a revenue loss and the increased quantity sold results in a revenue gain.

When you offer a sales discount, you are losing revenue since marginal revenue is lower than price, but at the same time if the marginal revenue is ≥ to marginal cost, then your profit and total revenue is increasing.

Explanation:

the other statements are false because:

A. Marginal revenue equals total revenue divided by quantity sold. FALSE, MARGINAL REVENUE IS THE REVENUE GENERATED BY SELLING ONE ADDITIONAL UNIT.
B. For a monopoly, marginal revenue equals price. FALSE, FOR A MONOPOLY MARGINAL REVENUE IS LOWER THAN PRICE.
C. For a monopoly, total revenue equals marginal revenue multiplied by the quantity sold. FALSE, TOTAL REVENUE = PRICE X QUANTITY SOLD

You might be interested in

Cybertrex, a manufacturing facility, rented a new piece of equipment on January 1st and agreed to pay an annual rental fee of $1

barxatty [35]

Answer:

4) $120,781

Explanation:

You can calculate the present value of the rental payments in two different ways:

1) multiply the value of the annuity times the present value of the annuity for 10 years = $18,000 x 6.71008 = $120,781

2) or you can divide calculate the present value of every annuity and then add them up

present value = ($18,000 / 1.08) + ($18,000 / 1.08²) + ($18,000 / 1.08³) + ($18,000 / 1.08⁴) + ($18,000 / 1.08⁵) + ($18,000 / 1.08⁶) + ($18,000 / 1.08⁷) + ($18,000 / 1.08⁸) + ($18,000 / 1.08⁹) + ($18,000 / 1.08¹⁰) = $16,667 + $15,432 + $14,289 + $13,321 + $12,250 + $11,343 + $10,503 + $9,723 + $9,004 + $8,337 = $120,781

7 0

3 years ago

Valuing assets at their fair value rather than at their cost is inconsistent with the: periodicity assumption. full disclosure p

PolarNik [594]

Answer:

Historical cost principle.

Explanation:

Valuing assets is described as determining the fair value in market and also asset valuation which its inclusion are are bonds, stocks, property etc. And in above question it is known that cost is inconsistent with historical cost principle. Historical cost principle in the other hand is described as recording of assets when they are been purchased at it historical cost. It is also a bookkeeping basic principle. This has several tools that it works with which include cost, market value etc.

This here explains to us that every business has a cost that drives on and a market value which it is driven on.

7 0

3 years ago

Choose the correct answer.

Serga [27]

Answer:

Walking to the convenience

store to buy a snack.

3 0

3 years ago

Read 2 more answers

A stockbroker trades shares she does not own with an obligation of later repayment, and in the hope that the price of traded sha

xxTIMURxx [149]

Answer: short selling

Explanation: In simple words, short selling refers to the process in which an individual borrows stock from its holder with the promise of giving it back after a specific time and at a specific price, after borrowing he or she sells the stock at the current market price and expects that the price of stock will decrease in future.

The borrower then purchases the stock at a lower price and gives it back to the lender with the margin profit in his or her pocket. Short selling works like a speculation but only market experts do such activity due to high risk involved.

Such processes are of high value to the market as they result in creation of liquidity.

3 0

4 years ago

During 2017, Oriole Company expected Job no. 59 to cost $300000 of overhead, $560000 of materials, and $200000 in labor. Oriole

Readme [11.4K]

Answer:

$165,000

Explanation:

The computation of the amount of over- or underapplied overhead is shown below:

The Predetermined overhead rate is

= Predetermined overhead ÷ direct labor cost

= ($300,000 ÷ $200,000)

= 150% of direct labour cost

Now

overhead applied is

= (150% × $280,000)

= $420,000

And,

Actual overhead=$255,000

So,

overhead overapplied is

= $420,000 - $255,000

= $165,000

5 0

3 years ago