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Arte-miy333 [17]
3 years ago
14

When a competitive firm finds that the market price is below its minimum average variable cost level, it will sell:

Business
1 answer:
Novosadov [1.4K]3 years ago
5 0

Answer:

The correct answer is option B.

Explanation:

In the perfect co petition firm is a price taker. Firms do not decide price. Price is determined by demand and supply intersection. Firms face a horizontal demand curve. They can only adjust the quantity they supply.

In a perfect competition, if the price is not able to cover the average variable cost, it means that the firm will be incurring losses. The firm will thus shutdown and stop production.

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A. Will be the nine month period between August 15 and May​ 15; any time period longer than this will be long run for her.

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Markets can:
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D

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B and C dont make sense A is that you can never run out of things in stock

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SartainC orporation is planning its annual budget and has the following beginning and ending inventory levels planned for the ye
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c.530,000 grams

Explanation:

Calculation for How much of the raw material should the company purchase during the year

First step is to prepare the Production Budget

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Total 202,000

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Less beginning finished goods inventory (22,000)

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(202,000-22,000)

Second step is to prepare Materials Budget

MATERIALS BUDGET

Raw materials required for production 540,000

(180,000*3 grams)

Add desired ending finished goods inventory

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Less beginning finished goods inventory (52,000)

Required material purchases 530,000 grams

(582,000-52,000)

Therefore the amount of the raw material that the company should purchase during the year is $530,000 grams

7 0
3 years ago
A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 200 units is $4
Eddi Din [679]

Answer:

The correct answer is option B.

Explanation:

A firm sells a product in a purely competitive market.

The marginal cost of the product at the current output of 200 units is $4.00.

The average variable cost is $3.50.

The market price of the product is $3.00.

The market price is not covering the average variable cost. In this situation, the firm must be incurring losses. To minimize losses the firm should produce less than 1,000 units at the point where marginal cost is equal to market price and the average variable cost is being covered.

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___________________- is another word for trail.
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Dirt road is another word for trail
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