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umka2103 [35]
3 years ago
10

For a perfectly competitive firm that does not shut down, the supply curve is a. the portion of the marginal cost curve at or ab

ove its average variable cost curve. b. the portion of the marginal revenue curve above its marginal cost curve. c. the portion of the marginal cost curve above its average cost curve. d. equal to its average variable cost curve. e. the same as the demand curve that the firm faces.
Business
2 answers:
Musya8 [376]3 years ago
8 0

Answer:

The correct answer is   A)

For a perfectly competitive firm that does not shut down, the supply curve is the portion of the marginal cost curve at or above its average variable cost curve.

Explanation:

For a perfectly competitive firm, the <em>marginal cost curve</em> is similar to the firm’s <em>supply curve</em> starting from the minimum point on the average variable cost curve.

To understand why this perhaps surprising insight holds true, first think about what the supply curve means.

A firm checks the market price and then looks at its supply curve to decide what quantity to produce.

Now, think about what it means to say that a firm will maximize its profits by producing at the quantity where P = MC. This rule means that the firm checks the market price, and then looks at its marginal cost to decide what quantity to produce—and ensures that the price is greater than the minimum average variable cost.

In other words, the marginal cost curve above the minimum point on the average variable cost curve becomes the firm’s supply curve.

Cheers!

mylen [45]3 years ago
4 0

Answer:

Option "C" is correct.

Explanation:

This occurs when the portion of the marginal cost curve is above its average cost curve.

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INCOME STATEMENT Patterson Brothers recently reported an EBITDA of $7.5 million andnet income of $2.1 million. It had $2.0 milli
VLD [36.1K]

Answer:

$ 1.75 million

Explanation:

EBITDA stands for Earnings  Before Interest, Tax, Depreciation and Amortization. Net Income is Earnings after Interest, Tax, Depreciation and Amortization.

So to find charge for depreciation and amortization we need to reconcile the EBITDA to the Net Income and find the missing figures,

<u>Reconciliation of EBITDA to the Net Income</u>

EBITDA                                                                                $7.5 million

Less Net income                                                               ($2.1 million)

Interest, Tax, Depreciation and Amortization                  $5.4 million

Less Interest expense                                                      ($2.0 million)

Less Corporate tax ($7.5 million - $2.0 million) × 30%  ($1.65 million)

Charge for depreciation and amortization                      $ 1.75 million

6 0
3 years ago
According to liquidity preference theory, if there were a surplus of money, then A. the interest rate would be above equilibrium
Lorico [155]

Answer:

Choice A would be the right response to either the following statement.

Explanation:

  • This theory seems to be a hypothesis that implies that shareholders will seek a higher rate of return as well as premiums on high-term securities with significantly increased risk maturity since, if all other considerations are similar, investors choose cash and perhaps other extremely liquid assets.
  • Even if there is an excess of capital, the inflation rate would have been over stability, as well as the amount of money needed would have been too increasing for stability.

The other choices are not relevant to the situation in question. So choice A is the right one.

3 0
3 years ago
Suppose that a computer software company controls the operating system market. Although the government knows that the price is h
tangare [24]

Answer:

a. Do nothing at all.

Explanation:

Since, the government knows that the price is higher than it would be in the presence of competition, it believes that such profits are crucial to incentivizing innovation in the high-tech industry, a policy goal of the government shall be to leave it alone.

The government has four potential policy paths to pursue when faced with a monopoly or powerful oligopoly

7 0
4 years ago
14. On January 1, Nick Co. purchased a delivery truck for $60,000. The truck's salvage value is $2,000, and its estimated useful
vfiekz [6]

Answer: $12000

Explanation:

The amount of depreciation expense that Nick should record for the first year will be:

The depreciation will be:

= 1/no. of years

= 1/10

= 10%

Then, the rate of depreciation for double-declining will be:

= 10% × 2

= 20%

Then, the depreciation for the first year will be:

= $60000 × 20%

= $60000 × 0.2

= $12000

Therefore, the amount of depreciation expense that Nick should record for the first year is $12000.

Depreciation expense should Nick record for the first year is $12000

5 0
3 years ago
The impact of financial accounting information on investors' and creditors' decisions is closely related to the concept of:_____
OlgaM077 [116]

The impact of financial accounting information on investors' and creditors' decisions is closely related to the concept of materiality.  In auditing and accounting, the term "materiality" refers to the importance or "significance" of a sum, a transaction, or a discrepancy.

According to the general accepted accounting principles (GAAP) criterion known as "materiality," all items that are conceivably likely to have an influence on investors' decision-making must be documented or disclosed in full in a company's financial statements. The significance of information in financial accounts of a corporation is referred to as materiality. A transaction or business decision is "material" to the business if it necessitates reporting to investors or other users of the financial statements and cannot be excluded.

#SPJ4

3 0
2 years ago
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