Personal finance and I need help

If a competitive firm can sell a bushel of soybeans for $25 and it has an average variable cost of $24 per bushel and the margin

Liula [17]

Answer: reduce output.

Explanation:

In a competitive market, firms do not have control over the price that they sell their goods in the market but they do have control over their costs. It is recommended to produce/ sell goods at a quantity where Marginal Revenue will equal Marginal cost (MR = MC).

In a Competitive Market, Price is the same as Marginal revenue which means that Marginal revenue here is $25 and the Marginal Cost is $26. At this quantity of output, the Marginal Cost is larger than the Marginal revenue.

Company should therefore reduce output to a quantity where Marginal Cost will equal Marginal revenue.

6 0

2 years ago

Russ and Linda are married and file a joint tax return claiming their three children, ages 4, 7, and 18, as dependents. Their ad

Anit [1.1K]

The correct answer is:

c. $3,700

6 0

3 years ago

Betram Chemicals Company processes a number of chemical compounds used in producing industrial cleaning products. One compound i

Dmitry [639]

Answer:

Betram Chemicals Company

1. Relevant benefits and costs for each alternative:

Sale at split-off Sale after

further processing

Revenue $129,420 $238,620

Joint Costs 73,000 73,000

Cost for further processing - 42,000

Gross profit $56,420 $123,620

Additional profit $0 $67,200

2. Further processing of Anderine is more cost-effective by $67,200.

3. Further processing of Anderine is still better by $60,760.

Explanation:

a) Data and Calculations:

Anderine Dofinol Cermine Total Costs

Gallons 5,600 7,600 $73,000 $73,000

Selling price per gal. $13.00 $7.45

Sales revenue $72,800 $56,620 $129,420

Gross profit $56,420

Further processing $42,000

Total costs of production $115,000 $115,000

Output (5,600) 7,600 2,800

Selling price per gallon $7.45 $65

Sales revenue $56,620 $182,000 $238,620

Gross profit $123,620

Profit from further processing:

Gross profit with further processing $123,620

Gross profit before further processing 56,420

Additional profit $67,200

1. Relevant benefits and costs for each alternative:

Sale at split-off Sale after

further processing

Revenue $129,420 $238,620

Joint Costs 73,000 73,000

Cost for further processing - 42,000

Gross profit $56,420 $123,620

Additional profit $0 $67,200 ($123,620 - $56,420)

What if:

Purchasing order cost (5,600/500 * 20 * $10) = $2,240

Quality inspection cost (5,600/500 * 15 * $25) = $4,200

Additional costs = $6,440

Reduced additional profit = $60,760 ($67,200 - $6,440)

4 0

3 years ago

"A registered representative ("RR") has entered an order to buy 100 shares of ABC at $50 per share for a customer. The transacti

ser-zykov [4K]

Answer: The "RR" may change the account number on the order ticket to the correct number if the branch manager approves in writing

Explanation: According to the scenario described above, the error in the executed order can only be effected based on approval by the branch manager after being notified by the registered representative of the error in the order ticket. The official approval to effect the change in the error made in the account details must be put into writing by the branch Manager for privacy and documentation sake as making such change to an order ticket requires following due process.

5 0

3 years ago

Suppose a decrease in the supply of bottled water resulted in a decrease in revenue. This indicates that A. the demand for bottl

Flauer [41]

Answer:

D. the demand for bottled water is price elastic in the price range considered.

Explanation:

Demand elasticity can be express as the sensibility of change in the demanded quantity when prices change.
Mathematically , can be written as $\eta=\frac{\triangle Q\%}{\triangle P\%} =\frac{\partial{Q^d}}{\partial{P}} \times{\frac{P}{Q} }$ , where $P$ is the price and $Q$ is the quantity demanded. This means that elasticity reflects what is the percentage change in quantity $\triangle Q\%$ in the presence of a percentage change $\triangle P\%$ in prices.
A decrease in supply would tipically rise prices, ceteris paribus.
If the decrease in supply was the cause of a decrease in revenues, it means that the percentage change in demanded quantity as a consequence of the rise in prices was bigger than the change in prices.
To see it more clearly, remember that the seller's revenue can be express as $revenue=P\times{Q}$ . If prices increased, but revenues fall, then $Q$ decreases in a bigger percentage than the increased in prices.
If $\triangle Q\%>\triangle P\%$ , then $\eta>1$ , wich is consistent with an elastic range of demand.

5 0

3 years ago