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rosijanka [135]
3 years ago
8

Alex's Furniture Mart produces and sells tables in a perfectly competitive market. When Alex's Furniture Mart produces and sells

250 tables, its marginal cost is equal to $200, and AVC is rising. If the market price of tables is equal to $150, Alex's Furniture Mart should:
a. raise the price of its tables
b. increase its level of table production
c. continue producing 250 tables
e. decrease its level of table production
Business
1 answer:
Tresset [83]3 years ago
6 0

Answer:

e. decrease its level of table production

Explanation:

MC = 200.

Market price = 150 which cannot be changed by any firm.

MC is greater than price = MR then in order to maximise profit MR has to be equal to marginal cost

MC has to be decreases to $150 which is possible only when it reduces output.

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Suppose that electricity producers create a negative externality equal to $5 per unit. Further suppose that the government impos
VashaNatasha [74]

Answer:

They are equal

Explanation:

Negative externality is when the benefits of economic activities to third parties is less than its costs.

A tax is levied on negative externality to reduce quantity produced to the social optimal quantity.

If the amount of tax is equal to the amount of total negative externality, then after-tax equilibrium quantity will be equal to social optimal quantity.

If the amount of tax is less than the amount is equal to the amount of total negative externality, then after-tax equilibrium quantity will be greater than the social optimal quantity.

If the amount of tax is greater than the amount is equal to the amount of total negative externality, then after-tax equilibrium quantity will be less than the social optimal quantity.

I hope my answer helps you

8 0
3 years ago
Read 2 more answers
Twelve years ago, the Archer Corporation borrowed $6,200,000. Since then, cumulative inflation has been 80 percent (a compound r
leonid [27]

Answer:

The effective purchasing purchasing power of the initial loan of $6,200,000 when the firm repays is  $3,444,444  

If the original purchasing power of the $6,200,000 is to be maintained the firm must repay $ 11,160,000

Explanation:

In computing the figures above, I adhered strictly to the hints given in the question the purchasing of the original should be calculated by dividing the original amount by 1 plus cumulative inflation rate of 80% and that the amount should be multiplied by 1 plus cumulative inflation rate to arrive the amount needed as repayment to maintain the purchasing of the initial loan amount.

Find attached for detailed computations

Download xlsx
5 0
3 years ago
Bison Autos and Sparrow Co. are automobile manufacturers that both incur $9,000 to manufacture a vehicle. Recent numbers indicat
barxatty [35]

Answer:

Sparrow Co's automobiles are premium brands that command premium prices

Explanation:

The fact that both automobile makers incurs the same cost of $9,000 is just one of many factors to consider because the processes involved in manufacturing are not necessarily the same.

Besides,the level of workforce efficiency and the state of technology deployed are not necessarily the same.

It could also be that Sparrow Co. was able to achieve same level of cost with Bison Autos because it adopted modern cost reductions techniques such as Just-In Time which eliminates the need to keep inventory, thereby  eliminating excessive costs of holding inventory.

All in all,Sparrow Co,could project itself as a maker of high-end brands and increase prices as appropriate.

8 0
3 years ago
In a market economy, a high price will usually cause
Talja [164]

Answer:

C) producers to supply more and consumers to buy less.

Explanation:

The typical supply curve is upward-sloping (higher price leads to higer quantity supplied) and the typical demand curve is downward sloping (higher price lower quantity demanded).

Price is a measure of how much one good can be exchanged for other things. Production incurred cost (tend to rise as more resources become harder to obtain) so to supply more suppliers will demand higher price. Purchasing higher price good means consumers have less money (less of other goods can be bought) consumer will buy less good at higher price.

6 0
3 years ago
Examine the scenarios to determine the protected status, unprotected status, existence, or non-existence of a trade secret.
DedPeter [7]

Answer:

Protected status

Explanation:

In simple words, the trade secret is said to be protected when it has an economic value to the founding company or the company handling it and anyone who is exposed to the information regarding that is legally bound to not to disclose it.

Thus, from the above we can conclude that the given scenario indicates protected status.

6 0
2 years ago
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