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3 years ago

your average total cost is $40; the price you recieve for the good is 12. Should you keep on producing the good?.

Business

1 answer:

Zepler [3.9K]3 years ago

7 0

Answer:

No, not at all. You should not go for producing that good.

Explanation:

A company do business in order to earn profits. A company earns profits by selling the product, good or service they produce or provide to the consumers. But if the cost of producing the goods is more than the profits earned due to that product, then there is no use of doing business. In order to earn profits, the cost of the product produced must be less than the price of that product. The price of the product should be set at a level which can cover all the costs incurred to produce that product. So in this question, if the price is $12 and cost is $40, then there is no need to product that product any more because this product is only incurring loss to the company.

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McLeod, Inc. incurred fixed costs of $300,000 and variable costs of $200,000 for total costs of $500,000 when 59,000 units are p

Ad libitum [116K]

Answer:

$3.389

Explanation:

Data provided as per the question below

Fixed cost = $300,000

Variable cost = $200,000

Total cost = $500,000

Units produced = 59,000

The computation of variable cost per unit is shown below:-

Variable cost per unit = Variable cost ÷ Units produced

= $200,000 ÷ 59,000

= $3.389

Therefore we applied the above formula.

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3 years ago

Which of the following best defines scientific management? Group of answer choices It is the behavior that conforms to a society

fgiga [73]

Answer:

Correct option is 'It is through studying and testing of different work methods to identify the best, most efficient way to complete a job'

Explanation:

Scientific management refers to employing different methods or workflows to improve labor work efficiency, thereby achieve organizational objectives in a efficient way.

Application of scientific methods to improve efficiency proved highly beneficial. One of the methods was to break down big tasks into smaller and simpler tasks and dividing the tasks among the labor as per their skills. This ensured quality work.

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3 years ago

Bob hasn't been managing his finances very well and is in need of an emergency loan to pay rent. On July 10, he goes to Cash4U f

Andrei [34K]

Answer:

APR = 669.17%

Explanation:

Cash 4U is charging $55 in interest for 6 days, that means it is charging Bob $9.17 in interest per day which is equivalent to 1.8333% daily interest. If we want to determine the APR we just have to multiply the daily interest by 365 days = 1.8333% per day x 365 days = 669.17%

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4 years ago

Suppose demand and supply are given by qxd = 14 - (1/2)px and qxs = (1/4)px - 1 instructions: enter your responses rounded to th

Ivenika [448]

Answer: Equilibrium price is $20 and equilibrium quantity is 4 units.

Explanation: Equilibrium is a situation of rest, a situation where demand for a good is equal to its supply. The price that balance demand and supply is known as the equilibrium price.

$Q_{xd} = 14 - \frac{1}{2} P_{x}\\Q_{xs} = \[tex]Q_{xd} = Q_{xs} 14 - \frac{1}{2} P_{x} = \frac{1}{4} P_{x} - 1 14 + 1 = \frac{1}{4} P_{x} + \frac{1}{2} P_{x} 15 = \frac{3}{4} P_{x} 20 = P_{x}$ [/tex] = Equilibrium price

Equilibrium quantity is given by,

$Q_{xd} = 14 - \frac{1}{2} P_{x} = 14 - \frac{1}{2} * 20= 14 - 10= 4$

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3 years ago

With an aim of a diagram, distinguish between the income effect and substitution effect of change in price of a normal good

Nana76 [90]

Hello. You did not present a diagram to which the question refers. However, I will try to help you in the best possible way.

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3 years ago