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sesenic [268]
3 years ago
13

The increase in total revenue that results from selling one more unit of output is A. marginal revenue. B. average revenue. C. m

arginal cost. D. None of the above. What is the relationship between​ price, average​ revenue, and marginal revenue for a firm in a perfectly competitive​ market? A. Price is equal to both average revenue and marginal revenue. B. ​Price, average​ revenue, and marginal revenue usually all have different values. C. Price is greater than average revenue and equal to marginal revenue. D. Price is equal to average revenue and greater than marginal revenue.
Business
1 answer:
egoroff_w [7]3 years ago
4 0

Answer:

(i) Option (A) is correct.

(ii) Option (A) is correct.

Explanation:

(i) Marginal revenue refers to the change in total revenue obtained from the sale of an extra unit of a commodity. It is calculated by differentiating total revenue with respect to output. It is shown as:

Marginal\ revenue=\frac{dTR}{dq}

where,

TR = Total revenue

q = output

(ii) In a perfectly competitive market, price is equal to both average revenue and marginal revenue. Since, firms in a competitive market are not required to reduce the price of their product for selling more number of units. Hence, the average revenue remains the same at all the level of output. That's why average revenue in equal to the price under perfect market conditions.

Therefore, every additional unit of an output is sold at a same price, so the marginal revenue obtained from an extra unit is constant and hence, price is equal to the marginal revenue.

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Fauver Industries plans to have a capital budget of $650,000. It wants to maintain a target capital structure of 40% debt and 60
Anon25 [30]

Answer:

$ 615,000

Explanation:

Data provided :

Capital budget = $ 650,000

Debt ratio = 40%

Equity ratio = 60%

thus,

The capital funded by the equity = 60% of the capital = 0.6 × $ 650,000

= $ 390,000

Dividend to be paid = $ 225,000

Therefore,

the net income must be earned = $ 390,000 + $ 225,000

or

The net income must be earned = $ 615,000

8 0
3 years ago
The following account balances were taken from the 2021 adjusted trial balance of the Bowler Corporation: sales revenue, $485,00
jekas [21]

Answer:

Bowler Corporation

Income Statement for 2021

Sales revenue                                    $485,000

Less Cost of goods sold                  ($248,000)

Gross Profit                                         $237,000

Less Expenses

salaries expense              $61,000

rent expense                    $36,000

depreciation expense     $46,000

miscellaneous expense  $28,000   ($171,000)

Net Income/ (Loss)                             $66,000

Explanation:

Income Statement shows the Operating performance of the the company over the financial period.

Income/loss = Sales - Expenses.

8 0
3 years ago
Use the as/ad model to describe the effect of each of the following events on the economy of snezhanka (a fictitious nation). be
marusya05 [52]

The following would happen

  • Aggregate income would increase for households. They would have a rise in output.

<h3> taxes on households are decreased</h3>

When the taxes are decreased, the households would have a rise in their purchasing power. Their output would go up form q to q2.

<h3> taxes paid by firms are decreased</h3>

The cost of the firms production is going to fall. The firm would then be able to raise their production hence increasing their supply. Output would rise and price level would fall.

<h3>the value of the national currency, the snezhankan lev, declines in the international currency market?</h3>

If the value of the currency should fall, then it would cause the demand for foreign goods to rise then there would be a new equilibrium in the market.

<h3> a revolutionary new machine, the apparat, increases worker productivity</h3>

An increase in productivity would raise supply for the producer hence bringing about a new rise in the price level.

Read more on aggregate demand and aggregate supply here:

brainly.com/question/25749867

#SPJ1

4 0
2 years ago
How much of the $17,500 gross distribution reported on form 1099-r is taxable in 2015?
yaroslaw [1]
You have to divide the 38 months into the $1,320 r<span>eceived tax free. 
</span><span>Solution:
$1,320 divided by 38 months = $34.7368 per month
</span><span>$34.74 times 12 = $416.84
</span>$17,500 minus $417= $17,083
7 0
4 years ago
The Management Discussion and Analysis section of the annual report can best be described as:
navik [9.2K]

The Management Discussion and Analysis section of the annual report can best be described as <u>c. Biased but informative</u>.

<u>Explanation</u>:

Biasing is an unfair activity in which the person favors one side and opposes the other. Biased people always exhibit prejudiced thinking.

These kinds of people think only from their side and they don’t think <u>“out of the box”</u>.

The management will be always biased when discussing about the annual report. The report provided by them in the discussion will be informative. But still it will be favored for someone and opposing another person.

5 0
3 years ago
Read 2 more answers
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