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
omeli [17]
3 years ago
14

If a profit-maximizing, competitive firm is producing a quantity at which marginal cost is between average variable cost and ave

rage total cost, it will___________________.
a. keep producing in the short run but exit the market in the long run.
b. shut down in the short run but return to production in the long run.
c. shut down in the short run and exit the market in the long run.
d. keep producing both in the short run and in the long run.
Business
1 answer:
Murljashka [212]3 years ago
5 0

Answer:

a. keep producing in the short run but exit the market in the long run.

Explanation:

To answer the question, there is a need to look at the effect of the situation on the firm both in the short- run and the long-run

Short Run Effect

The Marginal cost is between average variable cost and average total cost. The business can still continue producing goods because the quantity being produced is still able to cover the average variable cost. This means that the firm is still able meet its variable costs by setting the price of its goods to its marginal cost which is an amount greater than its average variable cost.  

Long Run Effect

However, in the long-run the company will begin to have issues even meeting other important costs such as the fixed costs associated with production and as such, the firm will need to exit the market in the long run. For instance the cost of long term loans (principal and interest) may not be covered by the net income of the firm.  

You might be interested in
Suppose the cost of 5 pencils is $1.50. The cost of 6 pencils is $1.75. The marginal cost of the sixth pencil is
nataly862011 [7]

Answer:

$0.25

Explanation:

The marginal cost of the sixth pencil is given by the difference in total cost of purchasing 6 pencils from the cost of purchasing 5 pencils. That is, the change in cost caused by the addition of the sixth unit of output:

MC = \$1.75-\$1.50 = \$0.25

The marginal cost of the sixth pencil is $0.25

4 0
3 years ago
The Chilton Corporation specializes in manufacturing one type of desk lamp. Chilton allocates variable manufacturing overhead co
docker41 [41]

Answer:

Variable manufacturing overhead rate variance = 80,000 favorable

Explanation:

Given:

Overhead rate variance = $1.70 per hour

Total machine hour = 160,000 hour

Actual overhead costs = $192,000

Find:

Variable manufacturing overhead rate variance

Computation:

Variable manufacturing overhead rate variance = [Standard overhead rate - Actual overhead rate]Actual hour

Variable manufacturing overhead rate variance =[1.7 - (192,000 / 160,000)]160,000

Variable manufacturing overhead rate variance = [1.7 - (1.2)]160,000

Variable manufacturing overhead rate variance = [0.5]160,000

Variable manufacturing overhead rate variance = 80,000 favorable

6 0
3 years ago
If you decide to advertise in a newspaper, which tip could be used to help you write an effective and appealing ad?
Mandarinka [93]

If you decide to advertise in a newspaper, the tip that could be used to help you write an effective and attractive ad is to create a headline that catches your target audience's attention, as this is the first contact with your ad that may cause interest in advertising.

Some tips for writing an effective ad in a newspaper are:

  • Determine the target audience
  • Determine ad content
  • Build a good layout
  • Offer unique opportunities
  • Call consumers to action

Therefore, it is essential that when choosing the channel where your ad will be published, you verify that it is the most appropriate channel to attract the attention of your audience.

In a newspaper, it is effective to use advertisements that portray urgency, opportunity, and calls to action.

Find out more about advertise here:

brainly.com/question/1658517

3 0
3 years ago
A group of users can perform certain operations on a shared workbook. Which option helps them to update and track changes in the
Radda [10]

Answer: Edit option allows everyone in a group to edit the contents work

Explanation:

Hope it helps

6 0
3 years ago
An airline has a marginal cost per passenger of $20 on a route from Minneapolis to Dallas. At the same time, the typical fare ch
luda_lava [24]

Answer:

The fixed costs are too high. The marginal cost generally represents variable costs and they might be very low, but if the fixed costs are simply too high, they will need to increase the price of the plane tickets in order to break even. The break even formula is calculated by dividing total fixed costs by marginal revenue (selling price - variable costs).

3 0
3 years ago
Other questions:
  • Marketing consists primarily of advertising a product or service. <br><br> a. True <br><br> b. False
    14·1 answer
  • If employers do not require a(n) __________, performance appraisal ratings often do not match the normal distribution of a bell-
    10·1 answer
  • What is the compound interest on a three-year, $100.00 loan at a 10 percent annual interest rate?
    7·2 answers
  • True or false?
    8·1 answer
  • During the month of July, Clanton Industries issued a check in the amount of $767 to a supplier on account. The check did not cl
    13·1 answer
  • Hatter Company purchased land, a building, and equipment for $450,000 on January 1, Year 1. The land had an appraised value of $
    10·1 answer
  • Balance sheet is a statement of what?​
    13·1 answer
  • Bucknum Boys, Inc., produces hunting gear for buck hunting. The company’s main production departments are Molding and Finishing.
    13·1 answer
  • Dawson Toys, Ltd., produces a toy called the Maze. The company has recently established a standard cost system to help control c
    15·1 answer
  • Especially for projects with long lives, estimation of revenues (or benefits), costs, and cash flows is a difficult task princip
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!