1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
xenn [34]
3 years ago
15

The equilibrium price of a guidebook is $35 in the perfectly competitive guidebook industry. Our firm produces 10,000 guidebooks

for an average total cost of $38, marginal cost of $30, and average variable cost of $30. Our firm should:a) raise the price of guidebooks, because the firm is losing money.b) keep output the same, because the firm is producing at minimum average variable cost.c) shut down, because the firm is losing money.d) produce more guidebooks, because the next guidebook produced increases profit by $5.
Business
1 answer:
natali 33 [55]3 years ago
3 0

Answer:

d) produce more guidebooks, because the next guidebook produced increases profit by $5.

Explanation:

A perfectly competitive industry is characterised by many buyers and sellers of homogenous goods and services. There are no barriers to entry or exit of firms. In the long run, firms earn zero economic profit.

Profit is maximised where marginal revenue/ price is equal to marginal cost.

In this question, marginal revenue ($35) is greater than marginal cost ($30), so, the firm isn't maximising profit and they should increase production.

A firm should shutdown when average variable cost is greater than price.

I hope my answer helps you

You might be interested in
Waterway Company reports the following financial information before adjustments. Dr. Cr. Accounts Receivable $145,600 Allowance
Nostrana [21]

Answer:

The journal entry is shown below:

Explanation:

According to the scenario, the journal entry are as follows:

(a). Journal entry

Bad Debt expenses A/c Dr $2,474

To Allowance for Doubtful debts A/c $2,474

(Being the bad debt expense is recorded)

Computation = ($145,600 × 4%) - $3,350 = $5,824 - $3,350

= $2,474

(b). Journal entry

Bad Debt expenses A/c Dr $7,244

To Allowance for Doubtful debts A/c $7,244

(Being the bad debt expense is recorded)

Computation = ($145,600 × 4%) + $1,420 = $5,824 +1,420

= $7,244

6 0
3 years ago
_____ involves developing separate marketing strategies for a number of segments.
solniwko [45]

Answer:

A. Differentiated marketing

Explanation:

Differentiated marketing -

It refers to the marketing strategy , where the company tries to target to at least two specific group , is referred to as a differentiated marketing.

In this strategy , different messages are used for the same campaign of different segments.

Hence , from the given statement ,

The correct option is A. Differentiated marketing .

4 0
3 years ago
Cho plans to manage the business, which means that she will have to quit her current job. Suppose that the interest rate (or rat
Masja [62]

$66,000 investments in the economy is 5%.

<h3>What is investments?</h3>

The dedication of an asset to achieve an increase in value over time is referred to as investment. Investment necessitates the sacrifice of a current asset, such as time, money, or effort. The goal of investing in finance is to generate a return on the invested asset.

Income investing is an investment strategy that focuses on constructing an investment portfolio that is specifically designed to generate regular income. The income investing strategy's sole goal is to generate a consistent stream of income.

The type of investor you are and how you should make investments are determined by your investing personality. Your investing personality is basically your financial risk profile that takes into account various factors like age, financial history, circumstances and your investment goals

To know more about investments follow the link:

brainly.com/question/25300925

#SPJ4

5 0
2 years ago
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company.
lina2011 [118]

Answer:

Nelson Company

a. Adjusting Journal Entries:

Debit Supplies Expense $2,700

Credit Supplies $2,700

To record supplies expense.

Debit Insurance Expense $1,650

Credit Prepaid Insurance $1,650

To record insurance expense.

Debit Depreciation Expense $1,625

Credit Accumulated Depreciation $1,625

To record depreciation expense.

b. Multi-step Income Statement for the year ended January 31, 2017:

Sales                                                                  $114,550

Sales returns and allowances                               2,000

Net Sales                                                             112,550

Cost of goods sold                  38,000

Inventory Shrinkage                  3,700                 41,700

Gross profit                                                       $70,850

Depreciation expense- Store    1,625

Sales discounts                          1,850

Salaries expense                     13,600  

Rent expense                           6,000

Store supplies expense           2,700

Advertising expense                9,700

Total selling expenses                         $35,475

Administrative Expenses:

Salaries expense                    13,600

Insurance expense                   1,650

Rent expense                          6,000

Total administrative expenses           $21,250   $56,725

Net Income                                                            $14,125

c. Single-step Income Statement for the year ended January 31, 2017:

Sales                                                                  $114,550

Sales discounts                          1,850

Sales returns and allowances  2,000

Cost of goods sold                  38,000

Inventory Shrinkage                  3,700

Depreciation expense- Store    1,625

Salaries expense                    27,200  

Rent expense                          12,000

Store supplies expense           2,700

Advertising expense                9,700

Insurance expense                   1,650               $100,425

Net Income                                                           $14,125

d. Current Ratio = Current Assets/Current Liabilities

= $22,700/$16,000

= 1.42

Acid-test ratio = (Current assets - Inventory)/Current Liabilities

= ($22,700 -10,800)/$16,000

= 0.74

Gross margin ratio = Gross profit/Net Sales = $70,850/112,550 * 100

= 63%

Explanation:

a) Data and Calculations:

NELSON COMPANY Unadjusted Trial Balance January 31, 2017

                                                    Debit           Credit

Cash                                           $8,150

Merchandise inventory             14,500

Store supplies                             5,500

Prepaid insurance                       2,600

Store equipment                       42,800

Accumulated depreciation -Store equipment $17,850

Accounts payable                                               16,000

J. Nelson, Capital                                                18,000

J. Nelson, Withdrawals               2,100

Sales                                                                  114,550

Sales discounts                          1,850

Sales returns and allowances  2,000

Cost of goods sold                 38,000

Depreciation expense- Store equipment 0

Salaries expense                    27,200

Insurance expense                   0

Rent expense                         12,000

Store supplies expense          2,700

Advertising expense               9,700

Totals                                 $166,400              $166,400

Adjustments:

Supplies Expense $2,700 Supplies $2,700

Insurance Expense $1,650 Prepaid Insurance $1,650

Depreciation Expense $1,625 Accumulated Depreciation $1,625

NELSON COMPANY

Adjusted Trial Balance January 31, 2017

                                                    Debit           Credit

Cash                                           $8,150

Merchandise inventory             10,800

Store supplies                             2,800

Prepaid insurance                          950

Store equipment                       42,800

Accumulated depreciation -Store equipment $19,475

Accounts payable                                               16,000

J. Nelson, Capital                                                18,000

J. Nelson, Withdrawals               2,100

Sales                                                                  114,550

Sales discounts                           1,850

Sales returns and allowances   2,000

Cost of goods sold                  38,000

Inventory Shrinkage                  3,700

Depreciation expense- Store    1,625

Salaries expense                    27,200

Insurance expense                    1,650

Rent expense                          12,000

Store supplies expense           2,700

Advertising expense                9,700

Totals                                  $168,025              $168,025

Current Assets:

Cash                                           $8,150

Merchandise inventory             10,800

Store supplies                             2,800

Prepaid insurance                         950

Total current assets =             $22,700

Current Liabilities:

Accounts payable                   16,000

7 0
2 years ago
When you purchase shares of a company in the market, who are you buying those shares from?
leva [86]

Answer:

Investor

Explanation:

A stock is a speculation. At the point when you buy an organization's stock, you're buying a little bit of that organization, called an offer. Investors buy stocks in organizations they think will go up in esteem. On the off chance that that occurs, the organization's stock increments in esteem also.

Investor is a person who purchase shares of a company in the market.

3 0
3 years ago
Other questions:
  • Scenario 3: Assume that Jacob had not yet sold the office furniture division by the end of 2016. Further, assume that the fair v
    13·1 answer
  • Which of the following statements is true of retailing? A) All retail stores are full-service retail stores. B) A department sto
    6·1 answer
  • Describe the personal assets that are protected under Chapter 13. Describe the basic eligibility requirements for filing under C
    7·1 answer
  • A manufacturer reports the information below for three recent years. Year 1 Year 2 Year 3 Variable costing income $ 120,500 $ 12
    10·1 answer
  • Which is most likely to be a long run adjustment or a firm that manufactures golf carts on an assembly line basis?
    5·1 answer
  • Consider a Treasury bill with a rate of return of 5% and the following risky securities: Security
    15·1 answer
  • Rick is looking to put some money in a savings account with a 3.8% interest rate. he currently has $4,780 saved, and he is tryin
    8·1 answer
  • When a process is in control, it results in there being, on average, 16 defects per unit of output. c-chart limits of 4 and 28 w
    8·1 answer
  • Divac’s preferred stock is $100 par, 8% stock. If the stock is liquidated or redeemed, stockholders are entitled to $120 per sha
    14·1 answer
  • Can you empathize with customers concerns.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!