1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
masya89 [10]
3 years ago
11

A firm sells a product in a perfectly competitive market. The marginal cost of the product at the current output level of 500 un

its is $1.50. The minimum possible average variable cost is $1. The market price of the product is $1.25. To maximize profits, the firm should:
increase production to more than 500 units
continue producing 500 units
decrease production to less than 500 units
shut down
Business
1 answer:
amid [387]3 years ago
3 0

Answer:

The correct answer is the third statement which says to maximize profits, the firm should produce less than 500 units.

Explanation:

The quantity of output produced is 500 units.

The marginal cost of producing 500 units is $1.50.

The minimum average variable cost is $1.

The price of the product is $1.25.  

The firm will be at equilibrium when the price is equal to marginal cost. To maximize profits firm should decrease output to the extent that marginal cost comes to $1.25. At that point, the firm will earn profits as average variable cost is lower than the price.

You might be interested in
how might a recent college graduate's investment portfolio differ from someone who is nearing retirement?​
iren [92.7K]

Answer:

A recent college graduate's investment portfolio will differ from someone who is nearing retirement due to the length of time someone who is at the end of their career has had to invest whereas someone who is a recent college graduate hasn't had the time/money to invest

Explanation:

4 0
3 years ago
Select the correct answer.
Mademuasel [1]

Answer:

C.earning college credits in high school.

Explanation:

The other answers are all negative and in the question it says ''a benefit''.

Hope this helps! Please mark brainliest!

3 0
2 years ago
Read 2 more answers
BRAINLIEST
matrenka [14]
Store 
department
class
sub-class 
styles
4 0
3 years ago
Suppose Russia and Sweden each produce only paper and cars. Russia can produce 8 tons of paper or 4 million cars each year. Swed
azamat

Answer:

Attached grap with point A and B.

Explanation:

Russia will produce the cars as their production has te lower opportunity cost:

(Note: Opportunity cost is the amount of production resigned for the current output)

<u>Sweden pportunity cost for production car: </u>

25 ton of papper / 5 m cars = 5 tons per millon of cars

<u>Russia pportunity cost for production car: </u>

8 ton of papper / 4 m cars = 2 tons per millon of cars

With the trade set at 2 millon car for 6 tons of paper we get the following

Sweden produce 25 tons - 6 traded = 19

and receive 2 millon car

Russia produce 4 millon car - 2 traded = 2

and receive 6 tons of pappers

8 0
3 years ago
In the event a firm goes bankrupt, an investment grade senior debenture bond is more likely to receive liquidation proceeds than
Elina [12.6K]
The answer that best fits the blank provided above is A SUBORDINATED DEBENTURE. Subordinated debenture is also known as subordinated debt. This kind of debt that ranks just below other loans whenever the company files bankruptcy. This is what is received instead of the liquidation proceeds.
3 0
3 years ago
Other questions:
  • A chain of supermarkets recognizes that it needs to increase revenue in the face of severe budget cuts due to the weak economy.
    7·1 answer
  • The 2015 American Time Use survey contains data on how many minutes of sleep per night each of 10,900 survey participants estima
    8·1 answer
  • Which of the following, if true, would most weaken the argument that Fony Corp. should upgrade its technology?A) Employees fear
    9·1 answer
  • On May 1, 2021, Concord Corporation declared and issued a 10% common stock dividend. Prior to this dividend, Concord had 207000
    5·1 answer
  • Economic systems differ according to which two main characteristics?A. the political system in place and the degree of scarcity
    9·1 answer
  • Lower-of-cost-or-market as it applies to inventory is best described as the:
    7·1 answer
  • When Jack takes a class, he saves all his work for that class with the name of the course. What is most likely happening to his
    13·1 answer
  • Haft Construction Company determines that 54,000 pounds of direct materials are needed for production in July. There are 3,200 p
    15·1 answer
  • You invest in a mutual fund that charges a 3% front-end load, 2% total annual fees, and a 3% back-end load, which decreases .5%
    9·1 answer
  • A small neighborhood comprised of 10 homes has a problem with break-ins and find the local police to be effective. They are cons
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!