1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
labwork [276]
3 years ago
8

Suppose that a perfectly competitive firm faces a market price of ​$7 per​ unit, and at this price the​ upward-sloping portion o

f the​ firm's marginal cost curve crosses its marginal revenue curve at an output level of 1 comma 400 units. If the firm produces 1 comma 400 ​units, its average variable costs equal ​$6.50 per​ unit, and its average fixed costs equal ​$0.80 per unit.
Required:
a. What is the firm's maximizing (or loss-minimizing output level?
b. What is the amount of it's economic profits (or losses) at this output level?
Business
1 answer:
andrey2020 [161]3 years ago
3 0

Answer:

1. This firm have the profit maximizing output level of 1400 units because a firm in any industry will maximize profit where MR=MC. Here MR is equal to MC at the output level of 1400. So profit maximizing level of output is 1400 units.

2.  Economic profit = Total revenue - total cost.

Where, Total revenue = Quantity * price

= 1400 * 7

= $9,800  

Total variable cost = AVC * quantity

= 6.50 *1400

= $9,100

Total fixed cost = AFC * quantity

= 0.80 * 1400

= $1,120

Economic profit = Total revenue - Total variable cost   - Total fixed cost

Economic profit = $9,800 - $9,100 - $1,120

Economic profit = -$420

. The  firm is having economic loss equal to 420.

Conclusion: This firm is facing economic loss in its output.

You might be interested in
A strong culture should reduce employee turnover because it results in ________.
Advocard [28]
<span>A strong culture should reduce employee turnover because it results in </span>cohesiveness and organizational commitment.
3 0
4 years ago
Employees at Clearwater Plumbing Supply, Inc. asked the management to hold an election to determine which radio station would be
slavikrds [6]

Answer:

Check the explanation

Explanation:

Going by the question we can derive a scenario whereby the employee cannot demonstrate disparate treatment since prohibiting a specific kind of music at work, even that which has been approved by a majority or popular employee vote, is not an unpleasant and adverse employment action.

6 0
3 years ago
Read 2 more answers
Which of the following conditions would most likely permit a monopolist to continue earning economic profits even in the long ru
velikii [3]

Answer:

<u>Question 1. </u>

Significant barriers to entry.

<u>Question 2.</u>

A formal collusive arrangement among firms.

<u>Explanation:</u>

Question 1.

It is only when there are restrictions to entering a market that a monopolistic firm will continue to earn economic profit in the long run. That is, <em>if it continues to be the only firm (without competitors) offering products or services.</em>

Question 2.

Remember, a cartel is a <em>unanimous agreement</em> (or formal collusive arrangement) by a group of firms to regulate supply and prices of products in it's industry.

6 0
4 years ago
A company's board of directors votes to declare a cash dividend of $1.00 per share of common stock. The company has 20,000 share
matrenka [14]

Answer:

$14,500

Explanation:

From the above, the below details are given;

Authorized share capital , which represent maximum number of shares that a company is allowed to issue.

Issued shares, which is the number of shares issued by a company including shares purchased and backed by a company(treasury stock).

There is also outstanding shares which is treasury stock less issued shares.

We do also know that treasury stock does not have any right of dividend because the shares are held by the company hence cannot pay dividend to itself.

Therefore, the total amount of the cash dividend is = 14,500 × $1.00

= $14,500

7 0
4 years ago
A customer redeems 1,000 shares of ABC Fund on Wednesday, June 14th. Under the provisions of the Investment Company Act of 1940,
Colt1911 [192]

Answer:

Wednesday, June 21st

Explanation:

In this scenario, since the customer redeemed the shares on Wednesday, June 14th then he must be paid before Wednesday, June 21st. This is 7 days after the redemption. According to section 22 article (e) of the Investment Company Act of 1940, all companies are prevented from postponing the date of payment for more than seven days as stated below.

(e) No registered investment company shall suspend the right

of redemption, or postpone the date of payment or satisfaction upon

redemption of any redeemable security in accordance with its terms

for more than seven days after the tender of such security to the

company or its agent designated for that purpose for redemption

7 0
4 years ago
Other questions:
  • Suppose that the requirements​ (in gallons) for the next four quarters are revised to 140 comma 000​, 60 comma 000​, 90 comma 00
    7·1 answer
  • Given the acquisition cost of product z is $30, the net realizable value for product z is $27, the normal profit for product z i
    8·1 answer
  • When a taxpayer does not materially participate in the business activities of a trade or business (including rental activities)
    8·1 answer
  • Moonland Company's income statement contained the following errors:
    13·1 answer
  • A company has the following annual budget data: Beginning finished goods inventory 40,000 units Sales 70,000 units Ending finish
    9·1 answer
  • If a Florida strawberry wholesaler operates in a perfectly competitive market, that wholesaler will have a ________ share of the
    5·1 answer
  • Bakker Corporation has provided the following production and average cost data for two levels of monthly production volume. The
    11·1 answer
  • The stockholders’ equity section of Montel Company’s balance sheet follows. Preferred stock—5% cumulative, $10 par value, 16,000
    6·1 answer
  • The twin economic problems of the U.S. health care industry are the rising health care costs and the moral hazard problem in hea
    14·1 answer
  • Assume Dell's yearly inventory cost is 30 percent to account for the cost of capital for financing the inventory, the warehouse
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!