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
Nat2105 [25]
3 years ago
15

The Ajax Manufacturing Company is selling in a purely competitive market. Its output is 100 units, which sell at $4 each. At thi

s level of output, total cost is $600, total fixed cost is $100, and marginal cost is $4. The firm should
A. Reduce output to about 80 unitsB. Expand its productionC. Continue to produce 100 unitsD. Produce zero units of output
Business
1 answer:
Fofino [41]3 years ago
5 0

Answer:

The correct answer is option D.

Explanation:

The total cost of the firm is $600.

The fixed cost is $100.

The variable cost will be

=Total costs-fixed costs

=$(600-100)

=$500.

The average variable cost will be

=total variable costs/quantity of outputs

=$500/100

=$5 per unit

The price is $4.

So, we see the price is not covering the average variable cost. This means the firm is incurring losses. The firm will thus produce zero units of output.

You might be interested in
Which of the following statements are true about organizational culture? Check all that applya. Employees may be unaware of the
erma4kov [3.2K]

Answer:

statements "a" "b" and "d" are true

Explanation:

The <u>statements "a" "b" and "d" are true</u> because employees may be uninformed of the underlying hypotheses that supervise an organization's culture. Culture can generate ambitious resources for a company. The actions managers exert can improve a company's culture. Organizational culture encompasses values and practices that provide the different social furthermore psychological situation of a company. The organizational culture changes the way people communicate, the circumstances within which culture is created, the revolution they will have towards specific changes, and presently the way they participate.

6 0
3 years ago
As a student in the Principles of Management class of Ama Ghana University, you are expected to have experiential knowledge so t
erma4kov [3.2K]

Answer:

The organization structure is not clearly defined, Managers are performing duties in various departments at a time.

Explanation:

San Consulting is one of the finest consulting firm in the Greater Accra Region. The firm is always a first choice for individuals who want to pursue their career in business. The Organizational structure of San Consulting is not clearly defined. San's profits are falling because management practices are not according to the other competitive organizations. The managers working at San are facing excess workload and pressure for their work. Their job descriptions is not clearly defined and they are forced to work in multiple departments at the same time due to which they are losing focus on their own work.  

Questions 1: Planning, organizing, leading and controlling

Question 2: The organizational structure needs to be set and every employee should have their defined job role so they are able to complete work with efficiency.

Question 3: The profits of San consulting will rise as there will be less duplication of work and every employee will be able to focus on their own task and will work with efficiency.

Question 4: Matrix. The matrix organizational structure is not suited in this organization. The right organizational structure for San consulting will be Functional Structure.

Question 5:

(i) The profits for San Consulting will decline

(ii) The profit will rise because employee will focus more on their specific tasks.

1B. Yes agree. The managers need to focus on the external environment as well to identify the opportunities and threats present which can stimulate changes for the organization.

5 0
3 years ago
A firm considers its regular warranty liability to be an existing liability of uncertain amount. At year-end, the firm estimates
kakasveta [241]

Answer:

$40 and $20

Explanation:

Based on the information provided within the question it can be said that in this scenario there would be two sets of standards. The first would be the international accounting standards which recognizes the midpoint of the range, which in this case is $40. While the second is the U.S standard which recognizes the low point of the range, which in this case is $20.

5 0
2 years ago
Read 2 more answers
invisible hand in Adam Smith's theory turns self-directed gain into social and economic benefits for all. true false
timofeeve [1]

Answer:

TRUE

Explanation:

Adam Smith 'Laissez Faire' Theory implies : Markets as free mechanisms are best, they are guided by self interest which tends to bring best socio economic welfare by increasing wealth. The market 'Invisible Hand' acts as an automatic stabiliser to any economic discrepancy & any government intervention is unnecessarily distortionary.

3 0
3 years ago
Good name for an online pet store?
Vesna [10]
Home of pets !!!
Hope it works!!!
3 0
2 years ago
Read 2 more answers
Other questions:
  • Jane receives utility from days spent traveling on va- cation domestically (D) and days spent traveling on vacation in a foreign
    12·1 answer
  • There are four categories of ___________ brands: premium, generic, copycat and exclusive co-brands.
    13·1 answer
  • Firms that sell luxury products, custom-made products, and services often take the time to significantly modify their products i
    5·1 answer
  • Drag each label to the correct location on the table. Match the companies to their business categories.
    6·1 answer
  • Are consumers only interested in making themselves as well off as possible in a material​ sense? consumers are
    14·1 answer
  • Red Co. reported cash paid for interest of $55,000 in its statement of cash flows for the current year. Red did not capitalize a
    15·1 answer
  • An insurance company estimates its objective risk for 10,000 exposures to be 10 percent. Assuming the probability of loss remain
    9·1 answer
  • The tragedy of the commons results when​ ___________. A. people are excluded from public goods. B. too many public goods are pro
    5·1 answer
  • bonds that are purchased with the intent of selling them in the near future to take advantage of short-term price changes are cl
    5·1 answer
  • During a job interview, Pam Thompson is offered a salary of $32,000. The company gives annual raises of 4 percent. What would be
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!