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Yuliya22 [10]
2 years ago
6

Suppose a car manufacturer discovers that the marginal cost of the last car produced was $15,000, while the marginal revenue was

$14,000. In order to increase profits, the car manufacturer should __________ the quantity of cars produced.
Business
1 answer:
Vinil7 [7]2 years ago
8 0

Answer:

decrease

Explanation:

If the marginal cost of producing one extra unit is larger than the marginal revenue earned by selling one extra unit, then the production should either be reduced or halted.

Generally in very competitive industries, like car industries, when the marginal cost exceeds the marginal revenue then the company should stop production in the short run until the price increases.

One real life example we can use is the traditional sales battle to decide who sells the most sedan cars in America between Honda and Toyota. Toyota has the advantage of fleet selling over Honda, since Honda is not willing to offer steep discounts on fleet sales as Toyota does. But does selling more sedans equals larger profits? Not necessarily, since fleet sales require steep discounts, Toyota's profitability is reduced or nearly eliminated. Honda decides to lower their production levels so that their marginal costs don't exceed their marginal revenue.

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Ways which business can overcome competition in the market environment​
AnnZ [28]
<h2><em>Ten ways to keep ahead of the competition</em></h2>

<em>Know the competition. Find out who your competitors are, what they are offering, and what their strengths and weaknesses are. ...</em>

<em>Know your customers. ...</em>

<em>Differentiate. ...</em>

<em>Step up your marketing. ...</em>

<em>Update your image. ...</em>

<em>Look after your existing customers. ...</em>

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3 0
3 years ago
Yummy Foods purchased a two-year fire and extended coverage insurance policy on August 1, 2016, and charged the $4,320 premium t
Sati [7]

Answer:

Prepaid insurance.......Dr 3,420

To Insurance expense 3,420

(being only 5 months of expenditure to be charged current year and rest to be show as prepaid expenditure)

Explanation:

6 0
3 years ago
Accompanying the bank statement was a debit memorandum for an NSF check received from a customer. This item would require an adj
tamaranim1 [39]

Answer:

The correct answer is debit accounts receivable, credit cash.

Explanation:

Note debit is a receipt that a company sends to its client, in which it is notified that it has charged or debited a certain sum or value in its account, for the concept indicated in the same note. This document increases the value of the debt or account balance, whether due to an error in billing, interest for late payment, or any other circumstance that means an increase in the balance of an account.

6 0
2 years ago
"_____" is the alternative term for "comfort" that is used by the wall street journal as one of the factors to grade jobs.
Leya [2.2K]
The answer is environment, this is the word that the wall street journals used in having to term the word comfort as this is somehow a word that made sense to them or something that depicts to them for them, environment is a way of having to say that it is comfort or comforting to other people.
3 0
3 years ago
Risoner Company plans to purchase a machine with the following conditions: Purchase price = $300,000. The down payment = 10% of
ser-zykov [4K]

Answer:

$62,160

Explanation:

Given:

Purchase price = $300,000

Down payment = 10% of purchase price = 0.1 × $300,000 = $30,000

Thus,

the cumulative amount to be financed = $300,000 - $30,000 = $270,000

The present value of an annuity of $1 per year for 8 years at 16% = $4.3436

Now,

Annual payment

= ( Cumulative Amount financed ) / ( Cumulative PV factor at 16% for 8 years)

= $270,000 / 4.3436

= $62,160.42

≈ $62,160

8 0
3 years ago
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