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Maru [420]
3 years ago
15

A perfectly competitive small organic farm that produces 1,000 cauliflower heads in the short run has an ATC = $6 and AFC = $2.

The market price is $3 per head and is equal to MC. In order to maximize profits (or minimize losses), this farm should:
Business
1 answer:
Mamont248 [21]3 years ago
5 0

Answer:

the firm should shut down, at least temporarily until the marginal revenue increases or definitely if the marginal revenue doesn't increase

Explanation:

if average total costs = $6 and average fixed costs = $2, then average variable costs = $6 - $2 = $4

since the average variable costs are higher than marginal revenue: $4 > $3, then the company is losing money (-$1) every time it sells its products.

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The owners of hotels whose services are produced and consumed at the same time know that consumers do not have the opportunity t
mixer [17]

Answer:

<em>E) Satisfaction Guarantees</em>

Explanation:

<em>Satisfaction Guarantees</em> also called <em>Money-Back Guarantee</em> is  basically a straightforward assurance <em>that a refund will  be produced if a purchaser is not satisfied with a product or service</em>.

This term is widely used in advertisements or commercials advertising a product or service and has been used for a long time as a marketing strategy.

8 0
3 years ago
During the planning process, if there is a gap between future desired sales and projected sales, corporate management will need
atroni [7]

Answer:

They are:

1) Intensive growth

2) Integrative growth

3) Diversification growth

Explanation:

1. Intensive growth:

This involves identifying further growth opportunities that are available within existing businesses. It identifies new customer groups for growth within current businesses, develop additional distribution channels or selling in new markets such as those in other countries. If this is insufficient the company may look into Integrative growth.

2. Integrative growth:

The second involves involves backward, forward, or horizontal integration. Horizontal integration involves buying smaller competitors.

Backward integration reaches into value chain to get suppliers. Forward involves buying distribution channels in the value chain closest to the customer. Integrative growth identifies opportunities to acquire businesses that are in relation to current businesses.

3. Diversification:

Diversification growth is to identify opportunities so as to add attractive unrelated businesses

8 0
4 years ago
Net working capital decreases when: A. a dividend is paid to current shareholders. B. a new 3-year loan is obtained with the pro
dsp73

Answer:

A. Dividend is paid to current shareholders.

Explanation:

This is simply said to be the aggregate amount of all current asset and also all current liability of an investment. It is used in measuring the short term liability of a business by subtracting the current liability from the current asset.

In some cases, it can be tagged a company’s current assets, such as cash, accounts receivable, inventories of goods etc. Many companies sum their's by calculating cash plus accounts receivable plus inventories, less accounts payable and less accrued expenses. This is why it is seen to decrease when dividend is paid to current shareholders.

5 0
3 years ago
The price-demand and cost functions for the production and sales x BBQ grills are given as p ( x ) = 410 − x / 6 C ( x ) = 5900
snow_tiger [21]

Answer:

(a)   R(x)=410x-\frac{x^{2}}{6}

(b) profit = 95,683.33

Explanation:

Price:p(x)=410-\frac{x}{6}

C(x) = 5900 + 130 x

(a) Revenue, R(x) = Price × Quantity

                    =410-\frac{x}{6}\times x

                    =410x-\frac{x^{2}}{6}

(b) profit = R(x) - C(x)

              =410x-\frac{x^{2}}{6}-5900 - 130x

                       At x = 1150

=410(1150)-\frac{1150^{2} }{6}-5900-130(1150)

= 471,500 - 220,416.67 - 5,900 - 149,500

= 95,683.33

7 0
3 years ago
Mickley Company’s plantwide predetermined overhead rate is $18.00 per direct labor-hour and its direct labor wage rate is $12.00
ipn [44]

Answer:

Results are below.

Explanation:

Giving the following information:

Predetermined overhead rate= $18.00 per direct labor-hour

Direct labor wage rate= $12.00 per hour.

Job A-500

Direct materials $220

Direct labor $60

<u>First, we need to calculate the direct labor hours:</u>

Direct labor hours= 60/12= 5

<u>Now, we can allocate overhead:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 18*5

Allocated MOH= $90

<u>Finally, the unit cost:</u>

<u></u>

Total cost= 220 + 60 + 90= $370

Unit cost= 370/60

Unit cost= $6.17

5 0
3 years ago
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