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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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Tyler Tooling Company uses a job order cost system with overhead applied to products on the basis of machine hours. For the upco
inessss [21]

Answer:

<u>Over Applied Overhead      = $ 4000</u>

Actual Manufacturing Overhead = $45,000

Manufacturing Overhead Applied = $ 49,000

Explanation:

                                          Job 101        Job 102        Job 103

Total Direct materials      $ 19,200     $ 14,400       $ 9,600       $ 43,200

Direct labor                    $ 28,800       $ 11,200        $ 9,600      $ 49,600

Machine hours              1,000 hrs        4,000 hrs      2,000 hrs   7,000 hours

<u>Manufacturing overhead   $ 7000       $ 28,000      14,000 </u>

<u>Total                                $ 55,000         53,600        33,200</u>

Actual overhead costs recorded during the first month of operations totaled $45,000.

<u>Journal Entries </u>

<u>Sr. No                    Particulars                 Debit                   Credit</u>

Job 102              Finished Goods           53,600

                           Work In Process                                     53,600

A journal entry showing the transfer of Job 102 into Finished Goods Inventory upon its completion.

Job 101                Sales                         60,000

                        Cost Of Goods Sold                              60,000

Journal entries to recognize the sales revenue and cost of goods sold for Job 101.

Job 101              Cost of Goods Sold        55,000

                          Finished Goods Inventory                  55,000

Manufacturing Overhead Applied =   $ 7000 + $ 28,000+14,000 = $ 49,000

Job 101 = 1000/60,000 * $ 420,000= $ 7000

Job 102 = 4000/60,000 * $ 420,000= $ 28000

Job 103 = 2000/60,000 * $ 420,000= $ 14000

Actual Manufacturing Overhead = $45,000

<u>Over Applied Overhead      = $ 4000</u>

                                   

      Manufacturing Overhead  Accounts $ 4000  debit                  

              Cost of Goods Sold          $ 4000 Credit

Entry to transfer the balance of the Manufacturing Overhead account to Cost of Goods Sold.

(Entry to reduce the amount of Over applied Overhead)                                

                         

6 0
3 years ago
g When a monopolistically competitive industry is in long-run equilibrium: Multiple Choice price equals marginal cost. firms ear
kozerog [31]

Answer:

price equals minimum average total cost

Explanation:

As we know that in the short run, the firms earns the economic profit but in the long run  when a new firm is entered into the indusry and there is a market share so the demand of the market is to be shared by each firm due to which the demand would be less

So this represents that price is equivalent to the average total cost

Hence, the last option is correct

8 0
3 years ago
Doc Xpress has an in-house staff of 35 employees who provide transcriptions of phone and video conferences for a range of client
siniylev [52]

Answer:

external threat

Explanation:

This decision was likely based on an external threat. Which in this scenario is the economy. Economy is considered as an external threat because it is not in the control of the company itself but still directly affects the everyday business operations of the company as well as it's profit and costs. All of this equates to how well the company performs, therefore in a situation where the economy poses a threat decisions need to be made such as the one in this scenario.

4 0
3 years ago
Suppose that a country’s annual growth rates over a 10-year period are as follows: Year Growth Rate 1 5% 2 3 3 4 4 – 1 5 – 2 6 2
mamaluj [8]

Answer:

a.  2.7%

b. From 6 to 9 years

Explanation:

a. The country’s trend rate of growth over this period is computed below:

= Total of growth rate ÷ time period

where,

Total of growth rate is

= 5% + 3% + 4% -1% -2% +2% + 3% + 4% + 6% + 3%

= 27%

And, the time period is 10 years

So, the trend growth rate is

= 27% ÷ 10 years

= 2.7%

b. The expansionary phase of the business cycle is from 6 years to 9 years as the growth rate is increased over this time period plus the growth rate is positive

3 0
3 years ago
Tax that you pay when making a profit from selling a house is an example of
vovikov84 [41]
The tax you pay when making a profit from selling a house is an example of Capital Gains Tax because you are selling it for more than what you paid for it. Capital Gains Tax is defined as a tax on a profit from the sale of property or a investment. 
8 0
3 years ago
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