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Rainbow [258]
3 years ago
7

Explain why it is true that for a firm in a perfectly competitive​ market, the​ profit-maximizing condition MR​ = MC is equivale

nt to the condition P​ = MC. When maximizing​ profits, MR​ = MC is equivalent to P​ = MC because _______
Business
1 answer:
saveliy_v [14]3 years ago
7 0

\bold{MR = P} is equivalent to both of the given conditions in a fully competitive market.

<u>Explanation: </u>

In profit maximization, MR = MC corresponds to P = MC since, for a fully competitive product, the marginal revenue curve is the same as its demand. If a company produces during this level, marginal income is lower than marginal cost.

This ensures that for each additional production unit, the company loses profit and should deliver less. MR > MC the company produces less and may increase income by higher output.

To sum up, MR > MC the company produces less and can make profit by increasing production MR < MC the company produces more and can earn a profit by reducing the output.

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Andrea invests $5,000 in five Epic Electronics bonds that mature in 10 years. Unexpectedly just the week after she invests, she
VladimirAG [237]

Answer:

The answer is option C. She may immediately sell the bonds but it is unclear how much money they will sell for.

Explanation:

She may immediately sell the bonds but it is unclear how much money they will sell for.

Investors who hold onto their bonds until maturity are assured of to receive the face value of the bond. In our case, if Andrea would have chosen to hold her $5,000  bond investment for 10 years, she would have been assured the  bonds face value, however since she prefers to use the cash to work abroad, she can sell the bonds immediately.

Selling a bond before it's maturity date can either be beneficial or detrimental. This depends on the value of the bond at the time of sale. If at the time of sale the bond would have gained value, then the bond will sell at a higher price than when it was bought. On the other hand, if the bond at the time of sale has lost value, then the bond will sell at a lower price than the price which it was bought.

In our case, the best option for Andrea would be to sell the bonds immediately, since she really needs the cash. If it happens that at the point at which she sells the bonds they will have gained value, then she will have more than $5,000 cash, however, if at the point she decides to sell the bonds they will have lost value, then she will have less than $5,000 depending on how much value was lost from the time she bought the bonds and the time she sold the bonds.

4 0
3 years ago
Ginocera Inc. is a designer, manufacturer, and distributor of custom gourment kitchen knives. A new kitchen knife series called
skad [1K]
To start of you need to divide them all by an equal number then subtract find the common variable multiple then and then ya
7 0
3 years ago
If competitors can copy or match the products and services the firm offers, it will be difficult to develop a sustainable compet
balu736 [363]

Answer:

resources that are valuable, rare, costly to imitate, and non-substitutable

Explanation:

If competitors can copy or match the products and services the firm offers, it will be difficult to develop a sustainable competitive advantage through product excellence. A firm can, however, develop an advantage through product excellence with resources that are valuable, rare, costly to imitate, and non-substitutable

Apart from product excellence, Intangible assets that have no physical presence like Brand reputation, trademarks and intellectual property are all intangible assets unlike physical resources, cannot buy from the market by other competitors. They are developed within a company and constitute the source of sustainable competitive advantage.  

In particular, the resources that generate competitive advantage are those that possess the VRIO characteristics,which implies that they are  

Valuable, hence there will be no competitive disadvantage

Rare, hence there will be no competitive parity

Imitate, - are costly and difficult to imitate hence they cannot be copied

Organised to Capture Value - which means they are non-substitutable.

4 0
3 years ago
During the​ year, credit sales amounted to​ $820,000. Cash collected on credit sales amounted to​ $780,000, and​ $15,000 has bee
Katena32 [7]

Answer:

The ending balance in the Allowance for Bad Debts is​ 20,500 CREDIT

Explanation:

The ending balance of Allowance for bad debts would be the 2.5% of sales

The adjustment is made to get the allowance for Bad Debt match the estimate uncollectible ammounts.

Notice it state <em>"company adjusted for bad debt expense"</em>

This means<u> it debit this account as much as it needed to be</u> to make allowance match the estimate allowance.

The write-off are transaction durign the period. They are irrelevant

So the ending balance is:

<em>2.5% of credit sales of 820,000 = $20,500</em>

It is important to remember that <u>Allowance is a counter-asset account</u>. His <em>normal balance is credit</em>, so the<u> final balance is credit.</u>

3 0
3 years ago
Alumplus Aluminum Company has come up with a new type of metal. However, producing it would take up 75 percent of its manufactur
otez555 [7]

Answer:

D. outsourcing

Explanation:

Outsourcing -

It is the method in a business to hire people from any other company in order to perform a particular task , is known as outsourcing .

The practice of outsourcing have the objective , in order to increase the efficiency of the company or to accomplish any goal with in a very short period of time .

Hence , from the question ,

The Aluminium company Alumplus , outsource people from out side its company to produce the products .

8 0
3 years ago
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