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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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For the following transaction, determine whether cash flows from operating activities will increase, decrease, or remain the sam
lutik1710 [3]

In case of accrued payroll for the month but did not pay the cash flow from activities will remain the same.

Considering, that the charge has now not been made, it has not led to any outflow of cash. It is going to be treated as a cash outflow in the month in which the payment is definitely made.

There are three cash flow sorts that organizations should track and examine to decide the liquidity and solvency of the enterprise: coins float from working activities, coins drift from investing in sports and coins flow from financing sports. All 3 are blanketed on a business enterprise's cash flow statement.

Cash from operating activities suggests the amount of money a company brings in from its ongoing, normal commercial enterprise activities, together with production and selling goods or imparting a carrier to customers.

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4 0
1 year ago
Barbara wanted to go into the long-distance trucking business. She bought a used tractor and trailer for $102,000. However, the
Norma-Jean [14]

Answer:

Basis in the tractor 78.000 and new trailer basis 30.000

Explanation:

The adjusted basis is referred to as the cost basis of the assets as reduced by  the cost recovery amount including the depreciation at the point of sale. Alternatively, the adjusted basis can be termed as the unrealized cost basis of the assets. The formula for the adjusted basis is:

Adjusted basis = cost basis - Cost recovery deductions

The adjusted basis for B's tractor and trailer is calculated as follows:

Adjusted basis for tractor = Cost of tractor

=102.000 - 24.000

=78.000

Adjusted basis for new trailer = Cost of trailer

=30.000

3 0
3 years ago
The Fed wants to increase the money supply (which is currently $4,000) by $200. The money multiplier is 3, and people hold no ca
Greeley [361]

Fed can achieve its goals using the given tools as shown below.

<h3>What is money supply?</h3>
  • The money supply (or money stock) in macroeconomics refers to the entire volume of currency held by the public at a given point in time.
  • There are numerous definitions of "money," but common measures often include currency in circulation and demand deposits (depositors' easily accessible assets on financial institutions' accounts).
  • A country's central bank may utilize a definition of what constitutes legal money for its own reasons.
  • Money supply data is recorded and released, typically by a government agency or the country's central bank.
  • Changes in the money supply are monitored by public and private sector experts because it is believed that such changes affect the prices of securities, inflation, exchange rates, and the business cycle.

In the given situation, Fed can achieve its goals using the given tools:

  1. Change the reserve requirement - The Fed should lower the reserve requirement to 48 ± 1 percent.
  2. Change the discount rate - The Fed should lower the rate by 12.50 ± 0.01 percentage points.
  3. Use open market operations - The Fed should buy $125.00 ± 0.01 worth of bonds.

Therefore, Fed can achieve its goals using the given tools as shown.

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brainly.com/question/3625390

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The complete question is given below:
The Fed wants to increase the money supply (which is currently $5,000) by $250. The money multiplier is 2, and people hold no cash. For each 1 percentage point, the discount rate falls, and banks borrow an additional $10. Explain how the Fed can achieve its goals using the following tools:

a. change the reserve req.

b. change the discount rate.

c. use open market operations.

5 0
2 years ago
True or false: Networking uses technology, such as a company intranet, to link organizations and their suppliers to allow them t
Juli2301 [7.4K]

Answer: True

Explanation:

3 0
2 years ago
Sommer, Inc., is considering a project that will result in initial after tax cash savings of $1.83 million at the end of the fir
ExtremeBDS [4]

Answer:

$22,592,593

Explanation:

For the computation of maximum initial cost first we need to follow some steps which are shown below:-

Let equity be 1 so debt = 1 × 0.80

= 0.80

weight of debt = 0.80 ÷ 1.8

= 0.44444

weight of equity = 1 ÷ 1.8

= 0.55556

Now

Cost of capital = (After tax cost of debt × Weight of debt) + (Cost of equity × Weight of equity)

= (5.1 × 0.44444) + (12.3 × 0.55556)

= 2.266644 + 6.833388

= 9.10 %

And,

Adjusted cost of capital is

= 9.1 + 1

= 10.1%

Maximum amount willing to pay = CF1 ÷ (Adjusted cost of capital -G)

= $1,830,000 ÷ (0.101 - 0.02)

= $1,830,000 ÷ 0.081

= $22,592,593

6 0
3 years ago
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