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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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Once an online catalog is in place, there are high costs in maintaining and accessing it.
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Answer:

False, once an online catalog is in place, there is little cost in maintaining it

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2 years ago
Blue Ridge Crafters is a co-operative that distributes traditional household furnishings, such as home-spun textiles, hand-throw
Harman [31]

Answer:

C) Horizontal growth strategy.

Explanation:

In the given situation, blue ridge would added non related products for the customers who already purchased it from them. Also it shows the concept of one-stop shop i.e. catering should be provided to all rounds requirement for the customers who visited them

Therefore as per the given scenario, the option c is correct

And, the same would be considered

5 0
3 years ago
__________ is credited with being the first restaurant to franchise.
Mazyrski [523]
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3 0
3 years ago
Lesson 7-1 single payment loans
kondaur [170]

Explanation:

The whole principal plus any debt shall be paid by a single payment lender on the same day the lender expires. Instead of multiple instalments, individual interest loans concurrently calculate the full rate.

When should a single payment loan be considered?

If your loan amount of money is high, if you choose a single payment, you will pay a lower interest.

You might, for example, save $12,000 and try to spend $10,000 on shopping like a holiday or a bell. You don't want to deplete your savings because you have a single credit for payment. This can save more money in the future you will pay $10,000 for the loan without dropping the bank account.

3 0
3 years ago
Chocoheaven processes cocoa beans into cocoa powder at a processing cost of $ 10,100 per batch. Chocoheaven can sell the cocoa p
sp2606 [1]

Answer:

No, it is not the right decision. The best decision that will bring maximum profit to the company is to sell chocolate syrup.

Explanation:

Profit = Sales revenue - Processing Cost

1-The Cocoa powder result in $3,900 profit ($14,000 - $10100) to the Choco Heaven company

2- If the company makes Chocolates syrup it will get profit of $34,000 ($104,000 - $70,000)

3- f the company makes Boxed assorted Chocolates it will get profit of $26,000 ($202,000 - $176,000)

5 0
3 years ago
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