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3 years ago

In the long run a pure monopolist will maximize profits by producing that output at which marginal cost is equal to:

Business

1 answer:

shepuryov [24]3 years ago

8 0

Answer:

2. marginal revenue.

Explanation:

Marginal cost is the extra expense incurred as a result of or producing or selling an additional unit. For a profit-maximizing firm, marginal cost is important as it indicates the point at which production should stop.

Marginal revenue is the income generated by the sale of an extra unit. If the marginal revenue is greater than the marginal cost, a firm will make profits if it produces and sells an extra unit.

A profit-maximizing firm should continue production until the marginal cost equal to marginal revenue. The cost associated with producing the last item should match the income from that item. Further production will result in a loss.

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Samuel, Inc. has Accounts Receivable of $110,000 and an Allowance for Doubtful Accounts of $17,000. If it writes-off a customer

Allushta [10]

Answer:

the net account receivable is d. $93,000

Explanation:

The computation of the net account receivable is shown below:

= (Account receivable - written off amount) - (Allowance for doubtful accounts - written off amount)

= ($110,000 - $1,700) - ($17,000 - $1,700)

= $108,300 - $15,300

= $93,000

Hence, the net account receivable is $93,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

7 0

3 years ago

Bill's product manager continues to perform well in the market. However, a competing product is coming on strong and is looking

Alex777 [14]

Answer:

Raise the marketing spend to raise visibility.

Explanation:

In simple words, the best way for the company to hold their position in the market is to strengthen their customer base and this can be done by performing more promotion. By doing so, they can attract more people to use their product and the new company will have to try harder to capture the market.

Thus, the best option for the company is to raise promotional activities.

6 0

3 years ago

A fixed asset with a five-year estimated useful life and no scrap value is sold at the end of the second year of its useful life

JulsSmile [24]

Answer:

B) A gain would be less or a loss would be greater using straight-line depreciation.

Explanation:

In straight line method of depreciation there is a fixed amount of depreciation, and in double declining method the rate is double of straight line method,

Let us take an example,

Cost of asset = $500,000

Selling price at end of 2nd year = $300,000

Straight line depreciation = $100,000 for each year i.e. $500,000/5

Double declining method rate = ($100,000/$500,000) $\times$ 100 $\times$ 2 = 40%

Therefore value at end of second year

Straight line = $500,000 - ($100,000 $\times$ 2 ) = $300,000

Double Declining method = ($500,000 -40%) - 40% = $180,000

In case of sale at $300,000

Profit shall be

Straight line = $300,000 - $300,000 = 0

Double Declining = $300,000 - $180,000 = $120,000

Now, there will be more profit in double declining that is gain is less in straight line and losses would be greater in straight line thus statement B is correct.

8 0

4 years ago

The ending retained earnings balance of the Taco Heaven restaurant chain increased by $2.6 million from the beginning of the yea

Vika [28.1K]

Answer: $4.1 million

Explanation:

From the question, we are informed that the ending retained earnings balance of the Taco Heaven restaurant chain increased by $2.6 million from the beginning of the year and that the company had declared a dividend of $1.5 million.

The net income earned during the year will be:

= $2.6 million + $1.5 million

= $4.1 million

5 0

3 years ago

Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike

ANEK [815]

Quick ratio is 1.47.

Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The quick ratio is an indicator of a company’s short-term liquidity position and measures a company’s ability to meet its short-term obligations with its most liquid assets.

Gross Profit 72000 67000

Operating expenses and interest expense 56000 53000,

Pretax Income 2200014000

Income Tax 3000 4000

Net Income 14000 10000

Balance sheet Year? Year

cash 4000 7000

Accounts Receive ab 114000 18000

Taventory 40000 34000,

Property & Equipment 45000 36000

Total Assets 302000 97000

Current Liabilities ‘i6000 4.7000

Long term Liabilities 5000 45000

Common stock 30000 30000

Retained Earnings 1120005000

Total Liabilities & Stock holders equity 10300037000,

L. Current Ratio = Current Assets / Current Liabilities

Year? Year

Current Ratio 36347

2.Quick Ratio

‘Current Assets - Inventory / Current Liabilities

Year? Year

Quick Ratio is 1.47

2.Profit Margin = Net profit /Sales

Year? Year

Profit Margin 737% 5.99%

Learn more about quick Ratio here

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4 0

2 years ago