The firm will exit or leave the industry as its not making any profits.
<h3><u>CALCULATION OF THE PROFITS</u></h3>
According to the Question,
The firm produces at P = MC
Where we know,
Q = 55 units
P = $4.78
ATC or Average Total Cost = 6.76
AVC or Average Valuable Cost = 3
P > AVC so the firm produces to minimize losses at the MC = P.
Profit = ( P - ATC ) × Q
=( 4.78 - 6.76 ) × 55
= - 108.9
The profit is - 108.9 dollars per minute.
As the firm in the industry is making losses ( a negative profit ) so it will exit the industry in the long run.
To know more about competitive firms, check the given link.
brainly.com/question/28104159
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When the price level in the United States fall relative to the price level of other countries, IMPORTS will fall, EXPORTS will rise and NET EXPORTS will rise.
When the price level of the United state is lower than that of another country, the amount of goods that will be brought from another country into US will be reduced while the amount of goods that US send to other countries will increase.
Answer: $40,800
Explanation:
Each unit requires 2 hours of direct labor.
1,020 units would therefore require:
= 1,020 * 2
= 2,040 hours of labor
The direct labor rate is $20 per hour. If there are 2,040 hours to be worked, the cost would therefore be:
= 20 * 2,040
= $40,800
Answer:
Product Differentiation
Explanation:
This is simply a strategy used by marketers to make their product different from that of their competitors.
Product Differentiation aims to make a product different so that potential buyers would identify the uniqueness of the product from other similar products.
