If the natural rate of unemployment in scoob is 5 percent, then

If a firm's average total cost is less than price where MR = MC,

bekas [8.4K]

Answer:

C. the firm should produce if its price exceeds average variable cost.

Explanation:

WHen average total cost is less that price, this means you are making a profit, and since they are in the equilibrium sate with Margina revenue being equal to marginal cost, they are in the sweet spot of production, so the only thing left for them is producing if its price exceeds average variable cost, and that would maximize their profits.

3 0

3 years ago

Westfall Watches has two product lines: Luxury watches and Sporty watches. Income statement data for the most recent year follow

avanturin [10]

Answer:

Net income will be $352,500 more if the company continues with Luxury watches only.

Explanation:

Since the company discontinues Sporty watches operation, the company's variable cost is decreasing. However, the fixed expenses remain same as the company will use the space for producing Luxury watches. The effect of operating income will be as follows:

Westfall Watch

Income Statement (Contribution Margin approach)

Particulars $

Sales Revenue [$400,000+(400,000 x 250%)] 1,400,000

Less: Variable expenses

[$255,000 + ($255,000 x 250%)] (892,500)

Contribution Margin 507,500

Less: Fixed Cost (80,000)

Net Income 427,500

Therefore, the net income will be $427,500 which is $(427,500 - 75,000) = $352,500 more.

6 0

3 years ago

The demand and supply for catnip are given by the following tables: Demand Price Quantity Supply Price Quantity $1.50/lb 2.00 2.

DENIUS [597]

Answer:

7

$3

Explanation:

Equilibrium is the point where Quanitity supplied equals quantity demanded. The price at this point is known as the equilibrium price and the Quanitity at this point is known as equilibrium Quanitity.

Quanitity demanded is equal to Quanitity supplied at 7 units. Price at this point is $3

Please check the attached image for a clearer image of this question.

I hope my answer helps you

5 0

4 years ago

Which of the following groups has the responsibility for identifying and deciding the appropriate accounting treatment for recor

sergiy2304 [10]

Answer:

C. Management

Explanation:

The Management of an organisation is primarily responsible for preparing the financial statements for that organisations to be consumed by relevant parties including the shareholders, the government and the society at large.

It is the responsibility of the Auditor to ensure that the prepared financial statement shows a true and fair state of the business for the period presented.

A contingent liability is a potential liability that may occur, depending on the outcome of an uncertain future event. A contingent liability is expected to be reported in the financial statement if it is likely to occur and can be reliably estimated.

Since Management is responsible for the preparation of the statement, then the inclusion of contingent liability is its responsibility.

8 0

4 years ago

Epic Inc., a firm that produces chairs for offices, uses comparative advertising to inform consumers that its products offer the

just olya [345]

Answer:

The correct answer is A. frontal.

Explanation:

If we match the supply of our competition in product, advertising effort, distribution policies, price and others, we are planning a frontal fight, where the highest tends to hit the best. Once started, the opponent will defend himself by lowering prices, offering added value, etc. Before starting a confrontation of this type, we must be very clear about our victory options and the possible reaction capacity of the opponent. If we give it everything and the opponent defends himself with solvency and returns a devastating blow, we will be sold.

7 0

4 years ago