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Stells [14]
3 years ago
14

At its present rate of output, Barrel O' Biscuits, a perfectly competitive firm, finds that its marginal cost exceeds its margin

al revenue and its price exceeds its average variable cost. To maximize profit, the firm should _____
Business
1 answer:
Delvig [45]3 years ago
3 0

Answer: Reduce output

Explanation:

 According to the given question, the barrel O' Biscuits is one of the type of perfectly competitive organization in which its overall marginal cost increasing the company's marginal revenue.

 For maximizing the profit of an organization then we should reduce the output as in the perfect competition the company majorly affected the output only and for shift the overall marginal cost of the company we reducing the output.

 Therefore, Reduce output is the correct answer.      

 

You might be interested in
. Suppose you own a bookstore. You believe that you can sell 40 copies per day of the latest John Grisham novel when the price i
Iteru [2.4K]

Answer:

PED = 0.67 inelastic demand

you should not lower the price of the book

Explanation:

the midpoint formula for calculating price elasticity of demand = {(Q2 - Q1) / [(Q2 + Q1) / 2]} /  {(P2 - P1) / [(P2 + P1) / 2]}

PED = {(50 - 40) / [(50 + 40) / 2]} /  {(25 - 35) / [(25 + 35) / 2]} = [10 / (90 / 2)] /  [-10 / (60 / 2)] = (10 / 45) / (-10 / 30) = 0.222 / -0.333 = 0.67

the PED = 0.67 which means that the demand is inelastic

if you lower the price of the book, the increase in number of books sold will be proportionally lower than decrease in price, so you will lose money by doing that.

7 0
3 years ago
Whispering Winds Company had the following two transactions related to its delivery truck. 1. Paid $250 for an oil change. 2. Pa
inessss [21]

Answer:

Journal Entries

Account                                                    Dr.        Cr.

1.

Repair and maintenance Expense       $250

Cash                                                                    $250

2.

Delivery truck                                         $800  

Cash                                                       $800

Explanation:

Property, plant and equipment are reported in the Fixed asset of the balance sheet. These assets are the depreciated. Fixed assets are initially recorded at cost.

Initially the amount capitalized includes the acquisition cost or purchase price and any direct cost incurred to make asset ready to use.

Any cost incurred to improve the efficiency of the asset will also be capitalised. In this question oil change is a routine maintenance cost  needed to operate the asset. Installation of Special gear unit actually improved the efficiency of the asset as a whole. So, it is capitalised.

8 0
3 years ago
Harms Shoe Company applies manufacturing overhead based on direct labor hours as the allocation volume. Information concerning m
andriy [413]

Answer:

Allocated overhead for july $227.20

Explanation:

Given data:

direct labor hours is 6100 hr

wages of labor is $14.20/hr

manufacturing overhead is $277,184

duration of labor is 5 hr

overhead allocation rate is given as

allocation rate = manufacturing overhead/ direct labor hour

allocation rate = \frac{277184}{6100} = $45.44/ direct labor hr

Allocated overhead for july = 5\times 45.44 =\$ 227.20

6 0
3 years ago
Problem 1 (15 Points Total): a) (5 points) For an interest rate of 1% per quarter, determine the nominal interest rate per i) se
IgorLugansk [536]

Answer:

Nominal interest rate semi annual  =2%

Nominal interest rate yearly = 4%

Nominal interest rate per 2 year = 8%

4 quarters in 1 year

Explanation:

given data

interest rate = 1%

deposit   = $100 per week

interest =  6% per year

solution

when quarterly interest rate is 1%

so that here Nominal interest rate per semi annual period will be

Nominal interest rate semi annual  =  1% × 2

Nominal interest rate semi annual  =2%

and

Nominal interest rate per year will be

Nominal interest rate yearly =  1% × 4

Nominal interest rate yearly = 4%

and

Nominal interest rate per 2 year will be

Nominal interest rate per 2 year = 1% × 8

Nominal interest rate per 2 year = 8%

and

when Interest rate compounded quarterly is 6% per year

so here Interest period 1 year as interest will be paid annually

and Compounding period is 1 quarter is compounding quarterly

and here

Interest will be compounded 4 times in 1 interest period

so there is 4 quarters in 1 year

7 0
3 years ago
SmartToy Corporation's current market strategy is to gain a larger share of the high-end toy market by integrating IBM's AI, nam
Ivan

Answer:

effectiveness

Explanation:

SmartToy has proven in this new toy line its effectiveness, as it has proven its ability to reach the desired result with a great success degree. The new IA was a bet, and a risky one. However, betting on a new technology raised that toyline quality to a new level and resulted in so much success in the market that the market share increases fivefold. That alone corroborates the company's effectiveness.  

4 0
3 years ago
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