1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
A company’s production budget requires the following units of a single product for the upcoming year: 1st quarter 60,000 units 2
maks197457 [2]

Answer:

165,000 pounds

Explanation:

A Purchase Budget is required to determine the quantities and cost of purchases required for use in production.

Materials Purchase Budget for Second Quarter (Pounds)

Budgeted Production Materials (80,000 x 2)                    160,000

Add Budgeted Closing Materials (90,000 x 2 x 25%)        45,000

Total Materials                                                                     205,000

Less Budgeted Opening Materials (80,000 x 2 x 25%)    (40,000)

Budgeted Material Purchase (pounds)                               165,000

Therefore,

Budgeted purchases of material for the second quarter would be 165,000 pounds

8 0
3 years ago
Hello everyone! I'am new over here!<br>May I have some friends?<br>(Indian☺️)​
Ipatiy [6.2K]
This is an education app... thanks for the points tho lol
3 0
3 years ago
Which is the best example of the seniority rule?​
Sphinxa [80]

Seniority is being older or more experienced than someone else. An example of the seniority rule would be a 4 year senator being appointed to a committee over a newly elected senator.

4 0
3 years ago
Read 2 more answers
A ___________ jury is one whose members are irreconcilably divided.
elena-14-01-66 [18.8K]
<span>A hung jury is one whose members are irreconcilably divided.
In hung jury the members are </span>irreconcilably divided in their opinions that they cannot reach a verdict (a formal decision that was made by the jury) or we can say that they can't concur upon a decision after stretched out thought and can't achieve the required unanimity or super-majority, hung jury is also known as deadlocked jury.
4 0
3 years ago
Operating profit is essentially a measure of how efficient management is in generating revenues and controlling expenses. True F
Paul [167]

Answer:

true

Explanation:

Operating profit is referred to as the profit gained by the corporation in business. it is calculated by subtracting all expenses from the total profit over the given period.

it is considered to be the best way to determine how management tactics are helpful or beneficial for the organization. it helps to decide on the working policy for future goals.

3 0
3 years ago
Other questions:
  • Harry owns a Cadillac and a Porsche. Ryan has always wanted a Porsche and knows Harry owns one. Harry decides to sell his Cadill
    13·1 answer
  • Watson company has monthly fixed costs of $83,000 and a 40% contribution margin ratio. if the company has set a target monthly i
    14·1 answer
  • Outstanding stock of the West Corporation included 40,000 shares of $5 par common stock and 10,000 shares of 5%, $10 par non-cum
    10·1 answer
  • Vincent is tasked with deriving the value for a large, custom home that was constructed nine months ago on a secluded 10-acre lo
    9·1 answer
  • An automobile manufacturer has written a long PowerPoint presentation to share with investors about the upcoming year’s business
    7·1 answer
  • What is meant by activity analysis? Give 3 criteria for determining whether an activity adds value.
    9·1 answer
  • McNulty, Inc., produces desks and chairs. A new CFO has just been hired and announces a new policy that if a product cannot earn
    9·1 answer
  • Outline the various challenges that you are likely to face during the implementation of a dam. ​
    12·1 answer
  • What is the importance of salesmanship​
    7·2 answers
  • A building's owner pays a property manager in 81/2% commission based on the units annualized rent for each new tenant last year
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!