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
valentina_108 [34]
3 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]3 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.

You might be interested in
Fill in each blank with the correct number from the table.
klasskru [66]

Opportunity costs are the measures of things you must give up when you make a certain decision.

In this case, if country A decides to produce all petroleum, they are choosing not to produce 8 units of seafood. This is their opportunity costs because they are giving up the 8 units of seafood to make petroleum.

The same is true for country B. If they choose petroleum, they are giving up the ability to make 8 units of seafood.

3 0
3 years ago
Read 2 more answers
Milani, inc., acquired 10 percent of seida corporation on january 1, 2017, for $190,000 and appropriately accounted for the inve
Natalija [7]

The 2018 journal entries for Milani<span> related to its investment in </span>Seida<span> are its share in net income and share in dividends. The investment in considered as investment in associate since there is already the significant influence in </span>Seida. These are the journal entries: 

 

<span>Investment in </span>Seida                                                             12,0000 

<span>       Share in net income of </span>Seida<span> ($30,000 x 40%)                            12,000</span> 

               #

Cash ($110,000 x 40%)                    44,000 

<span>        Investment in </span>Seida                                   44,000<span> </span>

<span>               #</span>

6 0
3 years ago
Alpha Corporation and Beta Corporation have just purchased identical pieces of equipment. Each firm estimates that the equipment
Firdavs [7]

Answer:

B) Alpha’s net income will be lower that Beta’s during the fourth year of the equipment’s service life.

5 0
4 years ago
The company enters a lease agreement requiring lease payments with a present value of $14 million. will this lease agreement aff
wariber [46]
Kjnkjnkj no onefc are  dld gp s gldfb jtelx gl x

5 0
3 years ago
What do you think would happen if all deposits of a bank requested their deposits at the same time what is done to keep this fro
Lady bird [3.3K]

Answer:

вровллчатвьчдвышгренугулыьььяираладщала

Explanation:

овоаииалулвпеараовлшаоолоры

8 0
4 years ago
Other questions:
  • What is the greatest risk of excavations
    7·2 answers
  • Which of the following inventory costing methods shown below is required by GAAP (Generally Accepted Accounting Principles) for
    9·1 answer
  • What are the following changes in trade would produce the greatest increase in GDP?
    15·2 answers
  • The unit price of a 128-ounce jug of milk is 4.8 cents per ounce. A 64-ounce carton of milk has a unit price of 5.1 cents per ou
    14·3 answers
  • Question in picture.
    8·2 answers
  • When a company in a declining industry attempts to minimize the amount of assets that are employed to reduce the cost structure
    13·1 answer
  • The largest sector in core economies is the tertiary sector; activities in this sector include __________________
    8·1 answer
  • Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or ba
    6·1 answer
  • Wetherald Products, Inc., has a Pump Division that manufactures and sells a number of products, including a standard pump that c
    12·1 answer
  • In your opinion, why is training vital to the success of any organization? What is the potential impact of lack of effective tra
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!