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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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In 500 words, describe a major financial decision you've made. Describe the decision-making process you went through when making
Katena32 [7]

Answer:

Plato Answer

Explanation:

The decision-making process consists of the following:

1. Identify the problem.

2. Gather information.

3. Analyze the situation.

4. Develop options.

5. Evaluate alternatives.

6. Select an alternative.

7. Act on the decision.

Recently, I bought a new computer. My decision-making process was as follows:

1. Identify the problem: The computer I used to do homework had broken down. The processor was inoperable. The problem was that I could not effectively do my schoolwork, including doing research, writing papers, and doing math homework that required Excel.

2. Gather information: I found out that a laptop that could handle basic functions and had a wireless network card (for internet access via Wi-Fi) would cost $200. A more sophisticated computer system with a faster processor and software included would cost up to $800.

3. Analyze the situation: The situation was that I had no way of doing my homework without the use of a computer. While I could write papers by hand and do research at the library, these were not viable because I had no way of getting to the library. In addition, my teachers would not accept handwritten papers.

4. Develop options: My options consisted of the following:

Buy a basic laptop for $200.

Buy a nicer computer for $800.

Go to the library to use the computers.

Stay after school to use the computers.

Write papers by hand and find other means of doing research and math complex problems.

6. Select a preferred alternative: I quickly eliminated the alternatives of going to the library and staying after school. I do not have transportation that would allow me to go or stay at these places (I take the bus to school and have an after-school job). Also, I already noted that teachers will not accept handwritten work. I spoke to my math teacher, and she explained that a computer is a necessity for our homework. So, I am left with buying a basic laptop or buying a nicer computer. Buying a basic laptop would be a quick fix, and it would be portable. However, I want this computer to last at least five years. I plan to major in engineering in college, and I know the laptop would not have the kind of power I’d need. A nicer computer with a faster processor would last through my high school years and for at least the first two years of college. With some modifications, I could make it last through college. I decide to spend the $800 on a nicer computer.

7. Act on the decision: I don’t have $800 at the moment, so I’ll need to make arrangements with my teachers to borrow a laptop. I will work overtime at the coffee shop, where I work after school each day. After a month, I should have enough money to buy the computer. In the meantime, I’ve arranged with a teacher to use my study hall period and basketball practice time to use the computers at school. This means I’ll sacrifice some playing time, but will get my homework done and keep my grades up.

6 0
4 years ago
Read 2 more answers
Mariposa Manufacturing builds custom wooden cabinets. Mariposa Manufacturing has reported the following costs for the previous y
Rainbow [258]

Answer:

The Direct Material Costs =$ 153,740

Explanation:

Mariposa Manufacturing

Direct Material Costs are those costs that are directly used in the manufacture of the product. In manufacturing wooden cabinets , wood and hardware(slides, handles, etc) are used directly. So  

The Direct Material Costs = Cost of hardware (slides, handles, etc) $ 33,800

+ Cost of wood $ 116,100 + Glue** = $ 149,900 +$ 3,840 = $ 153,740

In certain cases glue is considered an indirect material but in some it is a direct material.

WORKING:

Cost of hardware (slides, handles, etc) $ 33,800

Cost of wood $ 116,100

Depreciation on production equipment $ 31,700  (FOH)

Factory property taxes $ 17,100  (FOH)

Factory rent $ 38,900  (FOH)

Glue $ 3,840

Production supervisor salary $ 42,000  (FOH)

Sales manager salary $ 41,900

Utilities for factory $ 24,000  (FOH)

Wages for maintenance workers $ 31,500

Wages of assembly workers $ 91,500

Wages of finishing workers $ 77,800

Advertising $ 35,300

3 0
3 years ago
if a company calculated the final sales value of its various products that are manufactured and then subtracts out identified se
Colt1911 [192]

Answer:

The allocation method use if a company calculated the final sales value of its various products that are manufactured and then subtracts out identified separable costs is <u>Direct Allocation Method</u>

Explanation:

The direct method allocates costs directly to the producing departments based on relative use.

This method subtracts reciprocal services that incur additional costs  For example, this method would ignore service provided by the data processing department to other support departments, such as personnel or maintenance.

Final sales value of its various products and services that are manufactured and the costs form a portion of the overhead cost of production, which is then allocated to inventory and the cost of goods sold.

This method provides a better picture of how costs are incurred, but requires more accounting effort. It also tends to delay the recognition of expenses until a later period, when some portion of the produced goods are sold.

Identified separable costs are then subtracted from final sales value.

4 0
3 years ago
What are the risks of foreign outsourcing?
Fudgin [204]
The risks of foreign outsourcing is that they could stop trading with you.
7 0
3 years ago
Generic Motors is a manufacturing firm. Its beginning inventory of materials was $1,000, purchases of materials $20,000, ending
Hoochie [10]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Direct material:

beginning inventory= $1,000

purchases= $20,000

ending inventory= $1,500.

beginning inventory of work-in-process (WIP) was $5,000

ending inventory of WIP was $6,700.

Its cost of direct labor was $12,000, manufacturing overhead $11,000.

Its beginning inventory of finished goods was $3,000, the ending inventory of finished goods was $1,300.

A) Direct material used= beginning inventory + purchases - ending inventory

DM used= 1,000 + 20,000 - 1,500= 19,500

B) cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 5,000 + 19,500 + 12,000 + 11,000 - 6,700= $40,800

C) COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 3,000 + 40,800 - 1,300= $42,500

3 0
3 years ago
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