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Arada [10]
3 years ago
10

A perfectly competitive firm is producing at the quantity where marginal cost is​ $6 and average total cost is​ $4. The price of

the good is​ $5. To maximize its​ profit, this firm should ________.
Business
1 answer:
victus00 [196]3 years ago
8 0

Answer:

The firm should decrease output, because the market price is $5, which is lower than the marginal cost of producing one more unit of output: $6.

However, the average total cost of producing output in this market is $4, so the firm should only produce up to the point where this cost is still $4, so that it can make a profit of $1 in the market.

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Prove you know what diminishing marginal utility is by creating an example of your own. Your example
valentina_108 [34]

Hi there, I'm not answering this question, sorry.

Your task clearly states you must think of your own example and prove what you know. That's why.

Please, if you're coming onto the <em>Brainly</em> website, at least improve your questions.

6 0
3 years ago
An automotive magazine charges an annual subscription fee of​ $300, with customers prepaying the fee. Subscribers receive 50 iss
love history [14]

Answer:

  • <u>The numbrer of performance obligations is equal to the number of new subscribers.</u>

<u></u>

Explanation:

Each <em>new subscriber </em>generates a<em> performance obligation</em>, as the automotive magazine provides a coupon to each new subscriber, and each coupon is a promise to provide the discount.

A perfomance obligation is a contractual promise to provide a “distinct” good or service to a customer" (taken from the internet).

Whether or not the an obligation will be recognized or not will depend on whether the subscriber uses the coupon or not, but that does not depend on the will of the automotive magazine: they are obliged to provide the discount to every subsriber that uses the coupon (within the terms of the contract).

Thus, since each coupon is a contract, each one is a performance obligation.

7 0
3 years ago
Schiller Company has unit costs of $2 for materials and $6 for conversion costs. There are 5,600 units in ending work in process
bogdanovich [222]

Answer:

$19,600

Explanation:

Using the FIFO method, only 25% of the inventory should be valued at full cost (conversion + materials), while the remaining 75% of the 5,600 units should be valued only at the materials cost, since conversion is still required. The total cost assigned to ending work in process inventory is:

WIP = 5,600*0.25*(\$2+\$6)+5,600*0.75*\$2\\WIP=\$19,600

The total cost is $19,600.

7 0
3 years ago
On July 31, 2019, the balances of the accounts appearing in the ledger of Serbian Interiors Company, a furniture wholesaler, are
Alik [6]

Answer:

i do not know the answer

Explanation:

wassup

4 0
3 years ago
Read 2 more answers
Mr. Brown Wants to open a coffee shop. He has to decide whether he needs to apply for a loan or borrow money from financiers. Al
aliya0001 [1]

Answer:

Planning

Explanation:

Planning involves thinking ahead of time and making necessary preparations. As a management function, planning entails setting an organization's objectives and determining the path to follow to achieve them. Planning involves making logical preparations for moving an organization from where it is to where it wants to be.

Mr. Brown is planning how to establish his business. He is thinking of the measures he needs to put in place before the actual opening. Mr. Brown wants to have his financing and employee information sorted out well ahead of time.

6 0
3 years ago
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