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Aloiza [94]
3 years ago
6

Suppose your firm has a marginal revenue given by the equation MR = 10 - Q where Q is the quantity produced and sold. This means

that the seventh unit of output brings in 10 - 7 = $3 of additional revenue. The marginal cost for your firm is given by the equation MC = 2 + Q. This means that the seventh unit of output increases the marginal cost by 2 + 7 = $9. If the firm produces the seventh unit of output, marginal cost will be marginal revenue. In which of the following cases, will the profit of the firm be maximized? A. When the marginal cost of producing an additional unit equals the marginal revenue from that unit. B. When the average cost of producing an additional unit equals the marginal revenue from that unit. C. When the marginal cost of producing an additional unit is less than the marginal revenue from that unit. D. When the average cost of producing an additional unit is less than the marginal revenue from that unit. The profit-maximizing level of output is units.
Business
1 answer:
KonstantinChe [14]3 years ago
4 0

Answer:

The answer is: A) When the marginal cost of producing an additional unit equals the marginal revenue from that unit.

Explanation:

In economics, we assume that a company´s main goal is to maximize its profit. In order for any company do to this, the marginal cost (MC) of producing an extra unit of production must equal the marginal revenue (MR) obtained by selling that extra unit of production.

Theoretically, in perfect market conditions, MR=MC in the equilibrium point between quantity supplied and quantity demanded. But on real world conditions elasticity of both demand and supply alter the curves.  

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Lynn Bernerd, Inc., manufactures and sells reclining furniture. The company currently operates in the United States but wishes t
xeze [42]

Answer:

E) Trading company

Explanation:

In international trade, trading companies are basically wholesalers that work at an international level. They usually purchase products from different businesses and then resell them to local retail businesses or sometimes final consumers (less common). Trading companies generally enter a exclusive distribution agreement with the manufacturer per region or country that they operate in.

3 0
3 years ago
Leisha grew 4.5 inches and gained 3 pounds last year. about how many years old is leisha likely to be?
Nadya [2.5K]
Leisha is likely to be about three years old. This is because, between age two and three, children usually increase in length by about  3 - 5 inches and gained about 4 pounds. In the first two years of life, growth is faster than this while between the ages of four and six, growth is slower.
7 0
3 years ago
Steven's Battery Company has two service departments, Maintenance and Personnel. Maintenance Department costs of $320,000 are al
inna [77]

Answer:

From maintenance to department B will be allocated 85,333 dollars

Explanation:

We distribute maintenance over personnel and operating and then,

we distributed the accumulated in personnel over the operating department:

\left[\begin{array}{cccccc}&Maintenance&Personnel&Dep A&Deb B\\$maintenance-hours&&800&960&640\\$employes&&&160&480\\$Direct \: Cost&320,000&80,000&160,000&240,000\\$Allocate A&-320,000&106,667&128,000&85,333\\$Subtotal&&186,667&288,000&325,333\\$Allocate J&&-186,667&46,667&140,000\\$Total&&&334,667&465,333\\\end{array}\right]

<em><u>For the given question it would be:</u></em>

total maintenance-hours: 800  + 960 + 640 = 2,400

<u>allocation of maintenance:</u>

320,000 x   640/2400 = 85,333

4 0
3 years ago
he three main types of banks (Traditional, Credit Union, Online or Online-Only) have many tradeoffs with respect to technology,
Tema [17]
The saving rate from the highest to the lowest would be :

Traditional Banks  +/-  5 % of rates

Online banks +/-    4 % of rates

Credit Union +/-    2.5 % of rates

hope this helps
4 0
3 years ago
Which of the following equations is true? Select one: a. Contribution margin = Sales revenue × Variable cost ratio b. Contributi
m_a_m_a [10]

Answer: c. Contribution margin ratio = 1 − Variable cost ratio

Explanation:

The Contribution margin ratio is defined as the difference between the sales price of a good and it's variable costs. It is expressed as a percentage.

The formula is,

Contribution Margin Ratio = Sales - Variable Costs / Sales

Breaking the formula down further we have,

Contribution Margin Ratio = Sales/ Sales - Variable Costs / Sales

Contribution Margin Ratio = 1 - Variable Costs / Sales

Variable Cost/Sales is the Variable Cost Ratio.

So Option C is correct.

5 0
3 years ago
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