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faust18 [17]
3 years ago
6

A purely competitive firm's short-run supply curve is: a. perfectly elastic at the minimum average total cost. b. upsloping and

equal to the portion of the marginal cost curve that lies above the average variable cost curve. b. upsloping and equal to the portion of the marginal cost curve that lies above the average total cost curve. d. upsloping only when the industry has constant costs
Business
1 answer:
Norma-Jean [14]3 years ago
7 0

Answer:

The correct answer is option b.

Explanation:

A purely competitive firm will supply at the level of output where the price of the product is able to cover the average variable cost and the price is equal to the marginal cost. So the supply curve will be the portion of the marginal cost curve which lies above the average variable cost curve.  

This supply curve shows the different points where the price is equal to marginal cost and higher than the average variable cost.  

In the long run, the firm produces at the price which is able to cover the average total cost.

You might be interested in
n Corporation has a single product whose selling price is $120 per unit and whose variable expense is $80 per unit. The company’
Yuri [45]

Answer:

Explanation:

targeted profit can be achieved after covering total cost including fix cost

total cost = variable cost + fix cost

break even = total cost = total revenue

first we need to cover variable cost

Selling price                             =  120

Varaible cost                            =  -80

contribution margin                =   40

Now we need to cover fix cost

break even =  fix cost/ contribution margin    

break even =  50000/40

break even =  1250

now we need extra units to cover the targeted profit

 targeted units =  10000/40  

 targeted units =  250

total units that should be sold for targted profit of $10000 = (250+1250) = 1500

or  

we can solve through this method

targeted units = (fix cost+targeted profit) / CM per unit

targeted units = (50000+10000)/40

targeted units = 60000/40

targeted units = 1500

7 0
3 years ago
Vaughn Inc. reported total assets of $2406000 and net income of $332000 for the current year. Vaughn determined that inventory w
Vsevolod [243]

Answer:

$2,380,500  and $357,500

Explanation:

The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as

Opening balance + purchases - cost of goods sold = closing balance

As such, when inventory is overstated at the start of the year, the ending inventory would also be overstated by the same amount, the cost of goods sold would be overstated and net income understated.

Correct amount of asset

= $2406000 -  $25500

= $2,380,500

net income for the year

= $332000 + $25500

= $357,500

5 0
3 years ago
If the cpi was 240 in year 1 and 245.1 in year 2, what is the inflation rate between year 1 and year 2?
Ulleksa [173]

The inflation rate between years 1 and 2 is 2.13%

What is CPI?

CPI means consumer price index, the consumer price index measures the change in prices of a basket of  goods and services from one period to another, like the change in prices or inflation rate  from one year to another year.

The inflation rate can be expressed in the current year CPI divided by the prior year CPI as shown by the CPI formula shown below:

inflation rate=(CPI year 2/CPI year 1)-1

CPI year 2=245.1

CPI year 1=240

inflation rate=(245.1/240)-1

inflation rate=2.13%

The implication of the above computation is that the inflation rate between year 1 and year 2 is approximately 2.13% when  rounded to 2 decimal places.

In other words, the prices of goods and services has increase by 2.13% on the average between the two years

Read more on CPI on:brainly.com/question/11397263

#SPJ1

6 0
2 years ago
5. This is the best way to separate sugar and sand mixture.​
den301095 [7]

Answer:

Explanation:

The sugar would dissolve in water. You could then pour off the solution and wash the remaining sand with a bit more water. Heat the water to evaporate it from the sugar, and the two are separated

7 0
3 years ago
Capabilities-based planning scenarios emphasize the need for _________ incident preparedness to proceed through a capabilities-b
sp2606 [1]
<span>Capabilities-based planning scenarios emphasize the need for domestic incident preparedness to proceed through a capabilities-based approach.
This is one of the scenarios of homeland security planning scenarios. From these scenarios, homeland security capabilities can be measured. these planning scenarios are used in federal, state, local and national homeland security activities.</span>
5 0
3 years ago
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