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Serhud [2]
3 years ago
8

A pencil manufacturer is in a perfectly competitive market. The firm can sell as much as it wants at a price of $1.50 per pencil

. At some production levels, its average variable costs are less than $1.50, but there is no production level where its average total cost is equal or less than $1.50. What would be your recommendation to the pencil manufacturer? a. Increase production to decrease fixed costs per unit. b. Exit the business immediately. c. Continue production both in the short run and in the long run. d. Continue production in the short run, but exit the business in the long run unless prices are expected to rise or costs to fall..
Business
1 answer:
Ierofanga [76]3 years ago
3 0

Answer:

d. Continue production in the short run, but exit the business in the long run unless prices are expected to rise or costs to fall..

Explanation:

Currently, their sales revenue less variable cost is positive as it can sale at $1.50 dollars and the variables cost are less than that. Therefore, there are fixed cost thefirm can pay because it produce.

Now, in the long-run when the firm can exit the market it should consider to do so if it continues to get an average cost above the selling price.

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g Given the information below: ASSETS LIABILITIES Cash and cash equivalents $10,000 Current debts for the year $15,000 Other liq
artcher [175]

Answer:

The solvency ratio is closest to: B. 33%.

Explanation:

<em>The solvency ratio = After tax Net Operating Income ÷ Total Debt</em>

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3 years ago
Wildhorse Co. incurred research and development costs in 2018 as follows:
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Answer:

d. $2,950,000

Explanation:

The computation of amount of research and development costs charged is shown below:-

Amount of research and development costs = Direct materials + Personnel cost + Consulting fee paid to outsiders + Indirect costs + Depreciation

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8 0
3 years ago
Over time, members of the supply chain often formalize their relationship by entering into contracts that dictate various terms,
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Answer:

contractual vertical marketing system

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Here also the Walmart is the one which shall supply goods at the last to consumers and that the company P&G shall supply goods to Walmart. This is the chain. Now this is a vertical chain, as from producer to seller to consumer.

And since it is a marketing chain with contractual clauses which include all the penalties also.

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3 years ago
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