Which of the following is NOT an assumption that economists make when developing a production possibilities frontier (PPF)?

(a) At a product price of $67.00 (b) At a product price of $42.00 (c) At a product price of $33.00 Will this firm produce in the

Nimfa-mama [501]

a) Yes, $67 exceeds the loss—minimizing output.

Using the MR

They will produce 9 units.

Profits per unit = $67 - $50 = $17

Total profit = $153.

(b) Yes, $42 exceeds the loss—minimizing output.

Using the MR

They will produce 6 units

Loss per unit is = $42 - $47.50 = $5.50

Total loss = $33 (= 6 x $5.50), which is less than the total fixed cost of $60.

c) No, because $33 is less than AVC. If it did produce, the quantity will be 4—By producing 4 units, it would lose $78 [= 4 ($33 - $52.50)]. and if they didn't produce, it would lose only the total fixed cost of $60.

3 0

3 years ago

On March 1, Lincoln sold merchandise on account to Pina Colada Company for $29,400, terms 1/10, net 45. On March 6, Pina Colada

dolphi86 [110]

Answer:

The Journal entries with their narration is shown below:-

Explanation:

The Journal entry is shown below:-

1. Account receivable Dr, $29,400

To Sales revenue $29,400

(Being Sales revenue is recorded)

2. Sales return and allowance Dr, $2,200

To Account receivable $2,200

(Being Sales return is recorded)

3. Cash Dr, $26,928

($29,400 - $2,200) × 99%

Sales discount Dr, $272

To Account receivable $27,200

($29,400 - $2,200)

(Being cash is recorded)

7 0

4 years ago

The fiscal 2016 financial statements for Walgreens Boots Alliance, Inc., report net sales of $117,351 million, net operating pro

sertanlavr [38]

Answer:

D. 2.97

Explanation:

The net operating asset turnover ratio is used to measure the efficiency of operating assets and to determine how well these assets are used to generate sales. The assets that are tested here are operating assets that are those assets which are required to run the day-to-day operations of the business. For instance, Property, plant, and equipment, inventory, and cash etc. Investments and unutilized assets do not fall under this category.

Here are are required to calculate the net operating asset turnover ratio, which is calculated as follows:

Net operating asset turnover = Net sales / Net operating assets

⇒ Net operating asset turnover for 2016 = 117,351 m / 39,502 m = 2.97.

It means that for each dollar invested in the operating assets generates $2.97 of revenue.

3 0

3 years ago

Read 2 more answers

On January 1, 2018, Gridley Corporation had 375.000 shares of its $2 par value common stock outstanding. On March 1, Gridley sol

Allushta [10]

Answer:

weighted-average shares outstanding: 1,075,000

Explanation:

We need to multiply by the shares movements by the months remaining to complete the year. Thus, assinging a weight to each share.

Jan 1st: 375,000 x 12/12(all year) = 375,000

March 1st: 750,000 x 10/12(from March 1st to Dec 31th) = 625,000

May 1st: 20% stock dividends: (375,000 + 750,000) x 20% x 8/12 =

225,000 x 8/12(May 1st to Dec 31th) = 150,000

August 1st: (420,000) x 5/12(August 1st to Dec 31th) = (175,000)

November 1st: 600,000 x 2/12(November 1st to Dec 31th) = 100,000

375,000 + 562,500 + 150,000 - 175,000 + 100,000 = 1,075,000

4 0

3 years ago

One factor that shifts the consumption schedule is household wealth. Households build wealth by spending their incomes as they e

yanalaym [24]

Answer:

the correct answer is *not spending all their current incomes.

Explanation:

if you look at all the other options, they are not creating wealth but depletes it away. the only way to build wealth is by investing and saving over time. ideally, by not spending all their current income.

6 0

3 years ago