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k0ka [10]
3 years ago
5

For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or lo

ss if it produces at that quantity, using the data from the previous graph to identify its total variable cost. Assume that if the firm is indifferent between producing and shutting down, it will produce.
Price Quantity Total Revenue Fixed Cost Variable Cost Profit
(Dollars per polo) (Polos) (Dollars) (Dollars) (Dollars) (Dollars)
25.00 520,000
40.00 520,000
65.00 520,000

If the firm shuts down, it must incur its fixed costs (FC) in the short run. In this case, the firm's fixed cost is $520,000 per day. In other words, if it shuts down, the firm would suffer losses of $520,000 per day until its fixed costs end (such as the expiration of a building lease).

This firm's __________ that is, the price below which it is optimal for the firm to shut down is:________
Business
1 answer:
algol133 years ago
5 0

Answer:

This firm's <u>Shut down price</u>, That is, the price below which it is optimal for the firm to shut down is <u>$40</u>.

Explanation:

Shut down point is the point at which a firm or business is not able to gain any profit or benefit from the operations. Firm try to stay in the market until they reach the shut down point in business. It is a point where a business revenue just covers the variable expenses.

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The primary difference between variable costing and absorption costing is
IgorLugansk [536]

Answer:

The correct answer is letter "D": in absorption​ costing, fixed manufacturing overhead is a product cost.

Explanation:

Absorption costing or full costing includes all costs related to the production process like the fixed costs. Variable costing, on the other hand, only includes the variable costs from the production. Absorption costing incorporates allocating fixed overhead costs of each unit produced during a certain period.

4 0
3 years ago
Ginger and Maryann are lost in the jungle, where the only things to eat are mangoes and fish. Ginger can gather mangoes faster t
Lyrx [107]

Answer:

C. Maryann should specialize in the activity for which she has a comparative advantage.

Explanation: Being able to produce goods by using fewer resources, at a lower opportunity cost is comparative advantage. Maryann should specialize in the activity where she has this.

5 0
3 years ago
Supplemental liquidity providers (slps) trade securities on behalf of:
ivanzaharov [21]

SLPS trade securities on their own behalf (not for someone else).

5 0
3 years ago
If a life insurance company sells a $240,000 life insurance policy with a one year term to a 25-year old lady for $210, the prob
MrMuchimi

Answer: $112.08

Explanation:

Given that,

Life insurance policy = $240,000

Cost = $210

Amount to be paid by company to old lady if she survives (A):

= $240,000 - $210

= $239,790

Probability that she survives (P1) = 0.999592

Probability that she doesn't survives (P2) = 1 - 0.999592

                                                                     =  0.000408

Expected value of this policy for the insurance company:

= (P1 × cost of policy) - (P2 × A)

= 0.999592 × $210 -  0.000408 × $239,790

= $209.91432 - $97.83432

= $112.08

7 0
3 years ago
What form of welfare gives direct payments to recipients
jonny [76]
Since you provide no options, one of the form of welfare that gives direct payments to recipients is : DPDP
Which stands for Direct payments demonstration Projects

hope this helps

5 0
3 years ago
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