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umka2103 [35]
3 years ago
8

Jennifer's Bakery Shop produces baked goods in a perfectly competitive market. If Jennifer decides to produce her 100th batch of

cookies, the marginal cost is $120. She can sell this batch of cookies at a market price of $110. To maximize her profit, Jennifer should
Business
2 answers:
Blizzard [7]3 years ago
4 0

Answer:

To maximize her profit, Jennifer should abandon the product.

Explanation:

To maximize the profit Jennifer should keep marginal benefit as higher as she can, this could happen keeping marginal revenue higher and marginal cost lower as much as she can.

In this case marginal cost is higher than the marginal revenue, which is resulting as a marginal loss. Each extra batch being sold will add a loss of $10 ($110-$120).

Jennifer should abandon the product because it will reduce the average marginal benefit or total profit gradually.

mote1985 [20]3 years ago
4 0

Answer:

reduce her production level.

Explanation:

In a perfectly competitive market, firms will maximize their accounting accounting profits when marginal cost = marginal revenue. In this case, Jennifer's marginal cost is higher than her marginal revenue, therefore she should cut back on her production until her marginal cost decreases to $110 per batch of cookies.

Another characteristic of a perfectly competitive market is that both suppliers and consumers are price takers, so they must buy and sell at the market price. So instead of producing 110 batches of cookies, Jennifer should only produce 109, 108 ... or the number where her marginal cost is $110.

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Two eastern European countries formed a free trade agreement. As a result, one of the countries that used to produce its own pla
Aleonysh [2.5K]

Answer:

Trade creation

Explanation:

Trade creation is the process where there is increase in economics welfare as a result of joining a free trade area for example a customs Union.

Consumption experiences a shift from high cost producers to low cost producers causing expansion in trade.

In the given instance due to formation of free trade agreement, high cost plastic production is now replaced with low cost import of plastics from the other company.

There is a shift from high cost producers to low cost producers as a result of trade agreement between the two nations.

3 0
3 years ago
During the "mass production" era, operations management focused primarily on:
fiasKO [112]
The answer to your question is: "<span>Internal production"

hope this helped :)</span>
5 0
3 years ago
What is the definition of the time/value of Money A:the relationship between time money and the rate of return and their effect
jenyasd209 [6]

Answer:

The answer is B

Explanation:

6 0
2 years ago
The Swivel Chair Company manufacturers a standard recliner. During February, the firm's Assembly Department started production o
ivanzaharov [21]

Answer:

54,000 chairs

Explanation:

The computation of the number of chairs at the beginning of the month is shown below:

Inventory at the beginning of the month = Units completed and transferred  + ending inventory units - Units started

= 180,000 chairs + 21,000 chairs - 147,000 chairs

= 54,000 chairs

We simply applied the above formula to find out the inventory at the beginning of the month

7 0
3 years ago
Sarasota Company purchased a machine at a price of $103,200 by signing a note payable, which requires a single payment of $130,0
nlexa [21]

Answer:

-7.407%

Explanation:

Let interest rate be x%

Present value of payment = $130,002 * PV of discounting factor (rate%, time period)

$103,200 = $130,002 * 1.0x^3

1.0x^3 = $103,200 / $130,002

1.0x = ($103,200 / $130,002)^(1/3)

1.0x = 0.793834^(1/3)

1.0x = 0.92592660981

x = (0.92592660981 - 1) * 100

x = -0.07407*100

x = -7.407%

3 0
3 years ago
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