1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vladimir1956 [14]
3 years ago
13

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 minimum possible average variable cost is $3.50. The market price of the product is $3.00. To maximize profits or minimize losses, the firm should: Group of answer choices
Business
1 answer:
sattari [20]3 years ago
6 0

Answer:

It must shut down

Explanation:

Even at the lower average variable cost, which is 3.50 dolllar will be lossing money given a market price of 3.00 dollar

Considering is not making enough to cover the variable cost the best option is to shut down and only take a hit for the fixed cost  until it can totally exit the market. If it tries to produce it will only make thinks worse as producing generates more losses

You might be interested in
Most economists believe that in the long run, changes in the money supply Group of answer choices affect nominal but not real va
Ymorist [56]

Answer:

affect nominal but not real variables. This view that money is ultimately neutral is consistent with classical theory.

Explanation:

This idea is held by classical economists (not by most economists) since they believe in the quantitative theory of money:

MV = PQ

  • M = quantity of money
  • V = velocity of money
  • P = price level
  • Q = quantity of goods

Classical theory was abandoned 90 years ago (according to classical theory, recessions were not possible and couldn't exist, but then the Great Depression came and the impossible became true). Neo-classical or monetarists appeared in the 1960s, and lately, neo-neo-classical appeared with George W. Bush. The problem with the quantitative theory is that it needs the following things to be true in order to hold, and empirical evidence over the last 90 years showed that none of them are true:

  1. the velocity of money has to be constant (AND IT IS NOT CONSTANT)
  2. real output is independent on money supply (NOT TRUE)
  3. causation goes from money to prices (MODERN ECONOMISTS BELIEVE IT IS THE OTHER WAY)

5 0
3 years ago
Suppose Piranha.com sells 3,500 books on account for $17 each (cost of these books is $35,700) on October 10, 2018 to The Textbo
nadezda [96]

Answer:

The journal entries are as follows:

(1) (i) On October 10, 2018

Merchandise inventory A/c (3,500 × $17) Dr. $59,500

        To Accounts payable (Piranha)                             $59,500

(To record the purchase of books)

(ii) On October 13, 2018

Accounts payable A/c (100 × $17) Dr. $1,700

        To merchandise inventory                     $1,700

(To record the purchase return of book)

(2) (i) On October 10, 2018

Accounts receivable A/c Dr. $59,500

         To sales

(To record the sales of book)

Cost of goods sold A/c Dr. $35,700

            To merchandise inventory    $35,700

(To record the cost of goods sold of book)

(ii) On October 13, 2018

Sales return and allowances A/c Dr. $1,700

              To accounts receivable                  $1,700

(To record the sales return of book)

Merchandise inventory A/c Dr. $1,020

           To cost of goods sold               $1,020

(To record the cost of good return)

5 0
3 years ago
Jan is risk-averse, but wants to earn the best rate of return in less than two years. which investment would most likely meet ja
oksian1 [2.3K]
Jan needs bonds-based mutual funds as an investment in which he wants to earn the best rate of return. It mostly consists of individual bonds wherein it is compiled in a portfolio. A bond fund when then produced incomes from underlying bonds measured in incomes. 
5 0
3 years ago
What does country of primary residence mean?
ki77a [65]
A tenant whose apartment has just been converted to cooperative ownership
8 0
2 years ago
Which of the following does NOT hinder development for less-developed countries
boyakko [2]
What are the options?
4 0
2 years ago
Read 2 more answers
Other questions:
  • ____ describes the average level of ability, experience, personality, or any other factor on a team. A.Team diversity B.Group sy
    9·1 answer
  • Pedro owns a 50% interest in a limited partnership that operates an apartment complex. During the current year, the partnership
    10·1 answer
  • A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes
    8·1 answer
  • Jack rents rooms in his hotel for an average of $100 per night. The variable cost per rented room is $20, to cover maid service
    11·1 answer
  • ESPAÑOL: 1) Una empresa posee activos por $8’000.000 y pasivos por $5’000.000; hallar el patrimonio. 2) Una empresa tiene activo
    14·1 answer
  • At the beginning of the year, a firm had current assets of $121,306 and current liabilities of $124,509. At the end of the year,
    15·1 answer
  • Grameen Bank extends credit to the very poor to give them the opportunity to build better lives. Other businesses target poor pe
    7·1 answer
  • Dove, Inc., had additions to retained earnings for the year just ended of $643,000. The firm paid out $40,000 in cash dividends,
    5·1 answer
  • In july, noel & vang company purchased materials costing $23,100 and incurred direct labor cost of $19,800. manufacturing ov
    11·1 answer
  • Please study the case about the "Time Warner Cable" on page 467 and write an analytical and evidence based paper of minimum five
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!