Answer: $9,000
Explanation:
Rule 144 is a regulation that governs the trading of restricted, unregistered, and control securities and is enforceable by the SEC.
Under the rule, the person, as an officer of the ABC Corporation is limited to selling the higher of 1% of the Outstanding stock the company has or the average weekly trading volume over the preceding 4 weeks.
1% of the outstanding 900,000 shares is;
= 1% * 900,000
= 9,000 shares
This is higher than the average weekly trading volume over the preceding 4 weeks so this is the maximum permitted sales figure.
Answer: It should shot down immediately.
Explanation:
If the market price is equal to average cost at the profit-maximizing level of output, then the firm is making zero profits. If the market price that a perfectly competitive firm faces is below average variable cost at the profit-maximizing quantity of output, then the firm should shut down operations immediately.
Answer: Option (c) is correct.
Explanation:
Correct option: Unplanned inventory investment.
Unplanned inventory investment is a component of investment spending. The other component of investment spending is planned inventory investment.
Unplanned inventory investment occurs when actual sales are more or less than the company's expected sales which results in unplanned changes occurred in the inventories.
Hence, in the Keynesian-cross model, actual expenditures differ from planned expenditures by the amount of Unplanned inventory investment.
If for every $10 increase sales drop by 3 units when you increase to $300 you will lose 30 units.
($10)(10) = 100
(10)(3) = 30
60 units - 30 units = 30 units.
($300)(30) = $9,000 is your weekly revenue at a price of $300 per unit.