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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.

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<u>Answer:</u>

<em>(A) Constant and equal to an absolute value of one</em>

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<u>Explanation:</u>

The elasticity is diverse at each point on a demand curve with a consistent slope. The reason is that the "slope and elasticity" are various ideas. Incline estimates the steepness or evenness of a line as far as the estimation units for cost and amount. Elasticity determines the general reaction of the number of changes in price. Elasticity is diverse for each section on the interest bend. Although the slant is steady for this straight-line request bend, Elasticity is NOT.

4 0
3 years ago
At the beginning of year 1, Looby Corp. purchases equipment for $100,000. The equipment has a residual value of $20,000 and an e
ANEK [815]

Answer:

Accumulated Depreciation at the end of year  =  $16,000

Explanation:

<em>Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.</em>

<em>An equal amount is charged as annual depreciation over the life of the asset. The annual depreciation is calculated as follows:</em>

Annual depreciation:

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Cost - 100,000

Residual value = 20,000

Estimated useful life = 10 years

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Accumulated Depreciation for 2 years = Annual depreciation× number of years

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4 0
3 years ago
A company completes construction of a $400 million offshore oil platform and places it into service on January 1. State law requ
Sauron [17]

Answer:

b. Liability, $9,000,000; expense, $0.

Explanation:

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Also the journal entry is

Asset Dr

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3 0
3 years ago
The main output of the ______ process is the stakeholder register.
liq [111]
Hello!
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The answer to your questions is "identifying stakeholders".
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The main output of the identifying stakeholders process is the stakeholder register.
:)
7 0
2 years ago
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REY [17]

Answer:

Positive externality

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In the question above, the given statement represents positive externality.

4 0
2 years ago
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