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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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Adam is a traveling salesperson for Peter Petri Plumbing Supply Corp. Adam has express authority to solicit orders from customer
Juliette [100K]

Answer:

Explanation:

Liability of Petri:

On all the purchases, if payment is made within 30days from delivery, Petri gave the authority of a 5% discount to Adam. Upon extension of credit to customers,  no terms were given to Adam.

In the case under consideration, Adam explicitly gave a false representation of his authority to get more sales on his account and thus, Petri is NOT accountable to John on his terms with Adam.

Liability of John:

Being a customer to Petri, John has to discover the detailed terms on discount and other payment terms with Petri when he called Petri. John is also accountable to make clarifications whether Adam has the authority to give a 10% discount and making payment in three installments.

In the case under consideration, John has failed to find the exact details on whether Adam has the authority to give a 10% discount. Thus, he is accountable to make the payment of $9500 in 30days.

6 0
3 years ago
Kay, an art collector, promised Hammer, an art student, that if Hammer could obtain certain rare artifacts within 2 weeks, Kay w
IRINA_888 [86]

Answer:

Hammer would prevail against Kay based on:_______.

A. Unilateral contract.

Explanation:

A unilateral contract is a contract created by an offer that can only be accepted by performance. To form the contract, the party making the offer (called the “offeror”) makes a promise in exchange for the act of performance by the other party.

in relation to the case in the contract, Hammer had carried out the duties expected of him thus making the contract valid under a unilateral contract.  

since in a unilateral contract, the offer can only be accepted when the other party completely performs the requested action.

Hence  Hammer would prevail against Kay based on Unilateral contract.

5 0
3 years ago
Last year Bold and Best accounted for 56.5% of Baldwin's sales. Over the next few years, what should worry Baldwin's management
DaniilM [7]

Answer:

Explanation:

4 worries about Bold and Best (BB) are:

- Demand for BB may fall in the next few years, as customers are now less interested in purchasing BB or there is another substitute product for BB which is available in the market.

- Input costs/Production cost for BB may rise in the next few years, may be because of shortage of raw materials.

- The decline in BB sales may affect Baldwin's profitability as a whole because BB's revenue is currently the largest portion of the total revenue.

- Real purchasing power of customers fall because of a rise in expected inflation in the economy, which will lead to a fall in sales of BB.

6 0
3 years ago
Which of the following will not cause the production possibility frontier to shift? Group of answer choices the introduction of
algol13

Answer:

an increase in the working population

Explanation:

The Production possibilities frontier (PPF) is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.  

The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.  

The PPF can shift either inward or outward.

An outward shift is associated with an increase in output while an inward shift is associated with a reduction in output.

Factors that cause the PPF to shift

1. changes in technology. technological progress leads to outward shift of the PPF. introduction of "fiber optic" technology would shift the PPF outward.

2. changes in available resources. a land reclamation program would increase the land available for production and this would increase output. While an explosion destroying a chemical plant would reduce output and lead to an inward shift of the PPF

3. changes in the labour force. A decrease in unemployment would increase output and shift the the PPF outward

Working population is the number of people between 15-59.

6 0
3 years ago
When person a gains power because a has knowledge or expertise relevant to b, _______ power is demonstrated.
larisa [96]

When a person gains power because a has knowledge or expertise relevant to b, expert power is demonstrated.

Expert power is a type of power that comes from having a high level of knowledge in one's field of expertise. Expert power is relative. In other words, if two people have different levels of knowledge about a topic, the one with more knowledge has expert power.

Power refers to the ability to impose one's will against opposition from others. According to Max Weber, there are three types of legitimate authority: traditional, rationally legitimate, and charismatic.

Referee power has the ability to unite the knowledge or expertise of team members and increase their productivity. You can encourage your employees to work towards a common goal.

Learn more about knowledge or expertise at

brainly.com/question/3769428

#SPJ4

8 0
1 year ago
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