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victus00 [196]
3 years ago
6

A monopoly is producing output so that the average total cost is $30, marginal revenue is $40, and the price is $50.

Business
2 answers:
Len [333]3 years ago
4 0

Answer:

B

Explanation:

In this question, we are asked to pick from the options what should serve as the point of action of the firm given the scenario painted in the question;

We proceed as follows;

ATC= 30 $

Marginal revenue(MR)= 40 $

Price(P) =50 $

For efficiency,MC=minimum ATC=30 $

MR =40 > MC=30

For profit maximization, MR =MC

So, firm should raise output ,so that MR falls and becomes equal to MC

So correct option is B.

slavikrds [6]3 years ago
3 0

Answer:

B) increase output

Explanation:

A known rule is that a firm maximizes profit by producing a certain quantity of output where marginal revenue equals marginal cost. For there to be maximized profit, a firm ought to increase it's usage of the input "up to the point where the input's marginal revenue product will equals its marginal costs".

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66,000

Explanation:

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On January 1, 20X4, Parke Company borrowed $360,000 from a major customer evidenced by a non-interest bearing note due in three
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Answer:

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= $30,600.

Explanation:

a) Data and Calculations:

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Present value of the loan = $255,000

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5 0
3 years ago
The monopolist, like the perfect competitor, will maximize profits at the output where marginal revenue equals marginal cost.
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Three institutions that deal with human rights violations
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Exercise 8-9 Colaw Stores accepts both its own and national credit cards. During the year, the following selected summary transa
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Answer:

The Journal entries with their narration is given below:-

Explanation:

The Journal entry is shown below:-

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        To Sales                                      $22,200

(Being sales is recorded)

2. Cash  Dr,                              $6,048

Service charge expense Dr,   $252

($6,300 × 4%)

        To Sales                                 $6,300

(Being credit card sales is recorded)

3. Cash Dr,                          $11,600

        To accounts receivable       $11,600

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3 years ago
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