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3 years ago

If a firm's average total cost is less than price where MR = MC,

Business

1 answer:

bekas [8.4K]3 years ago

3 0

Answer:

C. the firm should produce if its price exceeds average variable cost.

Explanation:

WHen average total cost is less that price, this means you are making a profit, and since they are in the equilibrium sate with Margina revenue being equal to marginal cost, they are in the sweet spot of production, so the only thing left for them is producing if its price exceeds average variable cost, and that would maximize their profits.

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Honestly it’s a really good name

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3 years ago

A gourmet coffee shop in downtown San Francisco is open 200 days a year and sells an average of 77 pounds of Kona coffee beans a

NARA [144]

Answer:

a. 464 beans

b. $464

Explanation:

a. The computation of the economic order quantity is shown below:

= $\sqrt{\frac{2\times \text{Annual demand}\times \text{Ordering cost}}{\text{Carrying cost}}}$

where,

Annual demand = 200 days × 77 pounds = 15,400

And, all other items values would remain the same

Now put these values to the above formula

So, the value would equal to

= $\sqrt{\frac{2\times \text{15,400}\times \text{\$14}}{\text{\$2}}}$

= 464 beans

The average inventory would equal to

= Economic order quantity ÷ 2

= 464 units ÷ 2

= 232 units

b. Holding cost = average inventory × carrying cost per unit

= 232 units × $2

= $464

7 0

3 years ago

ABC Grocers uses a separate checking account to pay their employees. The gross pay for the period was $850. However, after deduc

choli [55]

Answer:

Debit Payroll expense $850

Credit Cash/Bank Account $790

Credit Deduction (liability) $60

Being entries to record payroll expense

Explanation:

Given;

Gross pay for the period = $850

After deductions were taken out, the net pay for the period = $790

Therefore, amount deducted = $850 - $790

= $60

The journal to record this would include;

Debit Payroll expense $850

Credit Cash/Bank Account $790

Credit Deduction (liability) $60

Being entries to record payroll expense

On remittance of the deduction to the appropriate party

Debit Deduction (liability) $60

Credit Cash/Bank Account $60

4 0

4 years ago

Quay Co. had the following transactions during the current period.Mar. 2 Issued 5,000 shares of $7 par value common stock to att

LenaWriter [7]

Answer:

Following are the journal entries to this question:

Explanation:

Date account title Dr. Cr.

Mar.2 Incorporation expense $\$39,600$

Common Stock (Par value $=5000 \ Shares \times 7$ ) $\$35,000$

Paid in excess of par- Common Stock $(39600-35000)$ $\$4,600$

(Bein 5000 common shares Of par value $\$4$ each issued )

June. 12 Cash $\$519,100$

Common Stock (Par value $-63400\ Shares \times 7$ ) $\$443,800$

Paid in excess of par- common stock $(519100-443800)$ $\$75,300$ (Being 63400 common shares of par value $\$7$ each issued for $\$519100$ cash)

July-11 cash $2175\ shares\times \$130$ $\$282,750$

Preferred Stock (Par value $=2175\ Shares \times \$110$ ) $\$239,250$

Paid in excess of par- Preferred stock $(282750- 239250)$ (Being 2175 Prefered shares of par value $\$110$ each issued for $\$130$ each)

Nov. 28 Treasury Stock $\$83,500$

cash $\$83,500$

(Purchased 2,350 shares of treasury stock for $\$83,500$ ).

3 0

3 years ago

Belarus has a comparative advantage in the production of linen, but Russia has an absolute advantage in the production of linen.

kodGreya [7K]

Answer: Option (a) is correct.

Explanation:

A country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodity is lower than the other country.

A country has a absolute advantage in producing a commodity whose production require less number of resources than the other country.

A country exports the commodity in which it has a comparative advantage and imports commodity in which it has a comparative disadvantage.

Therefore, if both the countries decide to trade then Belarus should export linen to Russia.

5 0

4 years ago

If a​ firm's average total cost is less than price where MR​ = MC,

If a firm's average total cost is less than price where MR = MC,