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Zolol [24]
3 years ago
10

Consider a profit-maximizing firm in a competitive industry. Under which of the following situations would the firm choose to pr

oduce where MR = MC?
Instructions: You may select more than one answer. Click the box with a check mark for correct answers and click to empty the box for the wrong answers.

a. Yes?/No? Minimum AVC < Price < minimum ATC.
b. Yes?/No? Price > minimum ATC.
c. Yes?/No? Price < minimum AVC
Business
1 answer:
Mandarinka [93]3 years ago
3 0

Answer:

Option (a) and (b) are considered or correct.

Explanation:

Under the following two conditions, a firm in a perfectly competitive market produces at a point where the marginal revenue is equal to the marginal cost:

(i) Minimum AVC < Price < minimum ATC : Yes

In this case, a firm may suffer a loss but it will be able to cover its minimum average variable cost. Hence, this firm continue operating in this market and if he shut down its operation then he may suffer a larger loss. Therefore, it chooses to continue operating under this market conditions.

(ii) Price > minimum ATC : Yes

In this case, the price received by the seller is greater than the minimum average total cost. Therefore, the firm is able to cover all of its cost of production and earning an economic profit. Hence, it obviously chooses to continue its operation.

The third option is not considered here because in this case, the firm won't be able to cover its variable cost.

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rewona [7]

Answer:

Thus, the present value is $2045.52.

Explanation:

Use the below formula to find the present value:

Present value = FV ÷ (1 + r/4)^(n*4)

Present value :

=\frac{700}{(1 + \frac{0.08}{4} )^{1 \times 4} } + \frac{700}{(1 + \frac{0.08}{4} )^{2 \times 4} } + \frac{0}{(1 + \frac{0.08}{4} )^{3 \times 4} } +\frac{1100}{(1 + \frac{0.08}{4} )^{4 \times 4} } \\ \\= \frac{700}{1.0824}+\frac{700}{1.1716} +0+\frac{1100}{1.3727} \\= 2045.52

Thus, the present value is $2045.52.

4 0
2 years ago
Compute the standard cost for one hat, based on the following standards for each hat: Standard Material Quantity: 3/4 yard of fa
Taya2010 [7]

Answer:

$21.65

Explanation:

The computation of the standard cost is shown below:

= Material cost + labor cost + factory overhead cost

where,

Material cost = 3 ÷ 4 × $5 per yard

                     = $3.75

Labor cost = 2 hours × $5.75 = $11.5

And, the factory overhead cost is

= $3.20 × 2 hours

= $6.4

So, the standard cost is

= $3.75 + $11.5 + $6.4

= $21.65

3 0
3 years ago
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alukav5142 [94]

The management of GameGuys, Inc. designed a strategy that unifies advertising, personal selling, public relations, and sales promotion activities, creating a consistent message. This effort to promote a positive brand image represents an integrated marketing communication program.

<h3 /><h3>What is integrated marketing communication?</h3>

They correspond to strategies used in organizations to promote a brand, a product or a relevant message through integrated communications, which are conveyed in different communication channels, to attract a greater number of potential consumers. Some media used are:

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The objective then of the integrated marketing communication is to generate a reinforcement of a communication that will increase the value of the brand and the perception of the target public.

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Find out more about integrated marketing communication here:

brainly.com/question/9696745

#SPJ1

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2 years ago
What types of investments are securitys
PilotLPTM [1.2K]

Corporate bonds, should be the answer

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3 years ago
If your _________, your net worth on the balance sheet would have increased from one period to the next. liabilities increased a
Neko [114]
The right answer for the question that is being asked and shown above is that: "liabilities increased and assets remained constant." If your liabilities increased and assets remained <span>constant</span>, your net worth on the balance sheet would have increased from one period to the next.
6 0
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