Answer:
B) To maximize profit, firms should produce at a level of output where price equals average variable cost
Explanation:
Firms maximize their profit by equating Marginal revenue with The Marginal cost. So, since for perfectly competitive firms, the price equals the Marginal revenue, for these firms profit is maximized by equating Price with Marginal cost not the average variable cost.
Answer:
Dr Visa card 194
Dr Bank charges 6
Cr Sales revenue 200
Explanation:
Crane Company Journal entry
Dr Visa card 194
Dr Bank charges (200*3%) 6
Cr Sales revenue 200
Answer:
Competition-based.
Explanation:
Competition-based pricing is a strategy of adopting similar pricing to companies in the same industry. It is a method based on competitive price observation and publicly disclosed information.
This method is not fully effective, although the added benefits of simple implementation, low risk and accuracy, there may be several missed opportunities when adopting the competition-based pricing method. Copying competitors' prices may not be a good solution to maximize profits, it is a short-term solution that may not be aligned with business strategy and the value and perception of consumers about your products and services.
So there are several other variables that influence profitability, and often following a criterion of copying prices is not enough, the ideal is for each company just to orientate itself to the other and establish a pricing that justifies its strategy.
Answer:
To estimate the total percentage of total outstanding stocks globally held unhedged on the trading books of top investment bank dealers, is the number of issued shares minus the number of shares held in the banks´ treasury, or the number of stocks outstanding, without considering the float.
Explanation:
The float or stock shares outstanding not held by individuals or associated corporations, percentage of 10% to 20%, is considered low and it means that the amount of available shares is not high. This percentage also gives you the idea on the stocks´ volatility.