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kap26 [50]
3 years ago
7

The Perez Lumber Company sells boards in a perfectly competitive market. The current marginal cost of boards at the current outp

ut of 445 board feet per month is $3.57 per board foot. The price of lumber is currently $3.57 per board foot, and the minimum possible average variable cost of producing lumber is $3.88 per board foot. If the firm wants to maximize profit (or minimize losses), it should a. shut down immediately. b. continue producing at its current output level. c. decrease monthly output to 200 board feet. d. increase monthly output above 445 board feet. I believe that the answer is C (and if not that, A), but I do not know how to actually reason/explain my answer (if I am even correct). Help would be great! Thank you.
Business
1 answer:
mafiozo [28]3 years ago
7 0

Answer:

c. decrease monthly output to 200 board feet.

Explanation:

If the firm wants to maximize profit it should decrease monthly output to 200 board feet demand by doing so , vital rate  will ultimately increase the cost of the product and shift them to the profit. The correct answer is C.

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National Bank quotes the following for the British pound and the New Zealand dollar: Quoted Bid Price Quoted Ask Price Value of
Snowcat [4.5K]

Answer:

$15.43

Explanation:

Following actions are required for triangular arbitrage:

Available: $ 10,000

Buy sterling pound @ 1 $ = 1.62 pounds and receive pounds 6172.84 upon conversion.

Now, sell these pounds and purchase NZ $ at the rate :

1 pound = NZ $ 2.95 and receive NZ$ 18209.87

Now, reconvert the above proceeds into US $ at the rate

1 NZ $ = $0.55 i.e sell NZ $ at this rate and receive US $ 10,015.4285

Hence profit from implementing triangular arbitrage is $10,015.43 - $10,000

= $15.43

Arbitrage refers to the prospect of earning a profit by utilizing the mispricing in two different financial markets. An arbitrageur never uses his own funds and always borrows.

Arbitrage works only in the scenario wherein the interest rate purchase parity (IRPT) does not hold good.

The strategy of arbitrage is best explained as "Buy at low price and sell at a high price".

 

7 0
3 years ago
Which type of portfolio might a young investor who is not afraid of risk choose?
Naddik [55]

The type of portfolio that the young investor who is not afraid of risk choose is the portfolio with a high percentage of stocks. Stocks are able to return higher compared to others and this makes it give a high risk because of its performance of providing losses or either profit. The answer is letter D.

7 0
3 years ago
Read 2 more answers
Kohlman Company began its operations on March 31 of the current year. Projected purchases for the first three months of business
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Answer:

c. $146,400 and 206,560.

Explanation:

Monthly Purchases are as follows;

April =$156,800

May= $195,200

June= $217,600

Since Admin expenses are paid every month,

April =$28,800

May = $28,800

June =$28,800

75% of April purchases will be paid in April . Use these to calculate the payments;

Pmts

April = 75%* $156,800 = $117,600

add Admin expenses to find total cash payments;

APRIL = $117,600+ $28,800 = $146,400

In May,20% of April purchases will be paid ,  75% of  May purchases will also be paid plus admin expenses. Use these to calculate the payments;

May= (20%* $156,800) + (75% * $195,200) + $28,800

MAY = 31360 +146400 +28800 = $206,560

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3 years ago
The study of large-scale economic phenomena is calle
Grace [21]
The answer is macroeconomics
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3 years ago
Because of vast differences between different regions, multinational corporations often use ______ departmentalization.
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Answer:

<u>geographic </u>departmentalization.

Explanation:

It is correct to say that multinational corporations tend to use geographic departmentalization due to the large differences between different regions.

The geographic departmentalization corresponds to a strategy where a company uses a form of structure oriented to a region, that is, it allows the operationalization to be more effective in a region that has greater demand or needs a physical office to better and faster service its customers.

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