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damaskus [11]
4 years ago
15

In a competitive market the price is $8. A typical firm in the market has ATC = $6, AVC = $5, and MC = $8. How much economic pro

fit is the firm earning in the short run?a. $0 per unitb. $1 per unitc. $2 per unitd. $3 per unit
Business
1 answer:
Luba_88 [7]4 years ago
5 0

Answer:

$3 per unit

Explanation:

In short run a monopolist and competitive firm try to maximize their profit and minimize costs until the the marginal revenue equals to the marginal cost.

In this question the average variable cost is lower than the marginal cost the difference between both is the profit for the short run.

Economic profit = Cost saving

Economic profit = Marginal Cost - Average variable cost

Economic profit = $8 - $5

Economic profit = $3

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Bingel [31]

Answer:

d. decrease in quantity demanded of unleaded gasoline.

Explanation:

Since the shipping cost of a gallon of gasoline is increased from $0.50 per gallon to $0.75 per gallon that reflect the increase in price

As the price is increased, the quantity demanded of unleaded gasoline is decreases as the shipping cost increases which affect the other factors

So, at one time the price increases with the decreases in the quantity demanded

6 0
3 years ago
1) Show the effect of the following transactions on the Accounting Equation:
Dennis_Churaev [7]

Answer:

Assets=48,000

Liabilities=47,700

Capital=300

More explanations is as attached.

Explanation:

The accounting equation can be expressed as shown;

A=L+C

where;

A=assets

L=liabilities

C=capital

This is then written as;

Assets=liabilities+capital

More explanations is as attached.

Download xlsx
6 0
3 years ago
The activity base selected determines whether a cost behaves as a variable cost or fixed cost.
kramer

Answer:

The activity base selected determines whether a cost behaves as a variable cost or fixed cost. This statement is true.

The correct answer is A.

Explanation:

Variable cost is a cost that fluctuates with respect to activity level while  fixed cost is a cost that remains unchanged irrespective of activity level.

Thus, the activity base selected determines whether whether a cost is fixed or variable.

6 0
3 years ago
Kraft produces Lunchables, a prepackaged meal usually consisting of several crackers, small slices of meat, and small slices of
ziro4ka [17]

Answer:

Moms with school-age children who pack a simple healthy lunch for them.

Explanation:

The small portion size and types of drinks indicates that this is a product Children. But For children products, the marketing strategy will always be targeted to their parents. They do this because children do not have the resources and decision ability to make the purchase by themselves.

From the way this product is descripted,

The target would most likely parents with very little time to cook for their children (probably working moms or dads). So they fast/simple preparation make it really appealing for them.

5 0
3 years ago
Which of the following was not a feature of the first IBM personal computer introduced in 1981?
Finger [1]

Answer:

The connection to the World Wide Web required a 48-pin connector.

Explanation:

The World Wide Web appeared only about 13 years later, there was no Internet back then. Networking wasn't even a concept for individual computers at their beginnings.  Just having a personal computer was already something BIG!

Communications appear in late 1980's with the Bulletin Board Systems (BBSs), which were more or less like today's Web sites, maintained by individuals from their home using dial-up modems.

3 0
4 years ago
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