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valentina_108 [34]
2 years ago
12

Mrs. Smith operates a business in a competitive market. The current market price is $8.10. At her profit-maximizing level of pro

duction, the average variable cost is $8.00, and the average total cost is $8.25. Mrs. Smith should
Business
1 answer:
Luba_88 [7]2 years ago
3 0

Answer:

Mrs Smith either shut down the business or invest in efficient equipements that lowers the total cost to below $7

Explanation:

The reason is that the you can not make profit if you product is sold in the market at a higher price than the competitor who offers the same product with the same features. So here, Smith can not make profits by selling the product at $8 because here total cost is $8.25 per unit.

So either she should invest in the business equipments which bring efficiencies and keeps the total costs to below $7 or she should shut down her business because the business is turned into loss making machine.

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According to the Coase theorem, private parties can negotiate to an efficient solution in the presence of externalities if the _
gulaghasi [49]

Answer:

transaction costs is your answer

Explanation:

3 0
2 years ago
You pay 20% down on a home with a purchase price of $180,000. Your bank will loan the remaining balance at 7% APR. You have an o
Mariulka [41]

The difference between the annuity payment paid under the annual plan and that under the monthly plan is $11,496.43.

The Annuity Difference

An annuity is a series of payments made at equal intervals such as monthly, quarterly, or annually.

The annuity payment under each of the two plans in the question can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

For the annual plan, the annuity payment can be calculated using equation (1) as follows:

PV = Present value = Loan from bank = Purchase price * (100% - Percentage of down payment) = $180,000 * (100% - 20%) = $144,000

PA = P = Annuity payment under annual plan = ?

r = APR = 7%, or 0.07

n = number of periods or years = 30

Substitute the values into equation (1) and solve for PA, we have:

$144,000 = PA * ((1 - (1 / (1 + 0.07))^30) / 0.07)

$144,000 = PA * 12.4090411835059

PA = $144,000 / 12.4090411835059

PA = $11,604.44

For the monthly plan, the annuity payment can be calculated using equation (1) as follows:

PV = Present value = Loan from bank = $144,000

PM = Annuity payment under monthly plan = ?

r = APR / 12 = 7% /12 = 0.07 / 12 = 0.00583333333333333

n = number of periods or months = 30 * 12 = 360

Substitute the values into equation (1) and solve for PM, we have:

$144,000 = PM * ((1 - (1 / (1 + 0.00583333333333333))^360) / 0.00583333333333333)

$144,000 = PM * 150.307567947822

PM = $144,000 / 150.307567947822

PM = $958.04

The difference between the annuity payment paid under the annual plan and that under the monthly plan can therefore be calculated as follows:

Difference = PA – PM = $11,604.44 - $958.04 = $11,496.43

Therefore, the difference between the annuity payment paid under the annual plan and that under the monthly plan is $11,496.43.

Learn more here: brainly.com/question/13405769.

4 0
2 years ago
Global trade provides consumers with
n200080 [17]

Global trade provides consumers with MORE OPTION AND LOWER PRICES.

Explanation:

Global trade provides consumers the opportunity to be exposed to goods and services not available in their home countries. Products that are sold within an international trading market are considered exports, while those purchased from the global trade market are labeled as imports.

It is thought that Global trade provides consumers with a great variety of goods and more options delivered at lower prices. Global trade allows countries to exchange goods and resources. Some countries specialise in producing some goods, while other countries specialise in producing other goods. By doing so, there are lower opportunity prices for consumers and a greater choice of goods.

5 0
3 years ago
Carlos transfers property with a tax basis of $500 and a fair market value of $800 to a corporation in exchange for stock with a
12345 [234]

Answer:

c. $550

Explanation:

Property has transfered by Carlos, and at the time of Transfer Carlos basis on the Property is $500.

So, from "Carryover basis" rule:

Corporation Tax basis on Property is = Basis of Carlos + Gain recognised.

                                                              = $500 + $50

                                                              = $550.

Therefore, The corporation's tax basis in the property received in the exchange is $550

4 0
2 years ago
To ensure that decision makers have enough information to make god decisions a. ​Move information to those making the decisions
castortr0y [4]

Answer:

The correct answer is letter "C": All of the above.

Explanation:

Managers should have<em> relevant information</em> handy so they can make optimal decisions. However, the information does not always is received in the first place by managers but by employees. Thus, organizations must find a way to move that information to the top positions.  

<em>That is why relevant information must be moved to high-rank executives otherwise the positions of decision-making must be provided to those with more corporate information available.</em>

4 0
2 years ago
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