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Anika [276]
3 years ago
9

If a competitive firm can sell a bushel of soybeans for $25 and it has an average variable cost of $24 per bushel and the margin

al cost is $26 per bushel, the firm should: reduce output. expand output. increase price. cut output to zero.
Business
1 answer:
Dmitrij [34]3 years ago
5 0

Answer:

reduce output

Explanation:

The marginal cost ($26) is greater than the marginal revenue ($25). In order to maximise profit, marginal cost should he reduced up to the point where marginal cost equals marginal benefit.

A firm should shutdown, reduce production to zero if average variable cost is greater than price but in this question, the firm shouldn't shut down since price ($25) is greater than average variable cost ($24).

I hope my answer helps you

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Phillippe invested $1,000 ten years ago and expected to have $1,800 today. He has not added or withdrawn any money from this acc
weqwewe [10]

Answer:

d) He earned a lower interest rate than he expected

Explanation:

Data provided in the question

Invested amount ten years ago = $1,000

Expected amount = $1,800

Today amount = $1,680

Based on the above information,

Since the bond is based on the floating rate not the fixed rate that results in the value of the investment to $1,800

And, the today amount is $1,680 i.e. less than the expected amount so the internet rate should be less as compared with the expected rate

hence, correct option is d.

8 0
2 years ago
What is the correct statement about regressive taxation?
Karolina [17]

Answer:

B. The sales tax you pay when you fill your car up with gas is regress

Explanation:

Gasoline tax is regressive because everyone regardless of their income level pay the same amount of tax per gallon of gas purchased. A progressive tax means that people that have higher incomes will pay a higher tax rate, for example, federal income taxes. Every flat tax (same percentage for everyone) is regressive.

8 0
2 years ago
Caribbean Reef Software has 8.4 percent coupon bonds on the market with 9 years to maturity. The bonds make semiannual payments
Zepler [3.9K]

Answer:

9.14%

Explanation:

Calculation for YTM

First step is to use financial calculator to find the I which represent Interest rate

FV = 1,000

PMT= 1,000*8.4%/2= 42

N= 9years*2= 18

PV= -955

Hence,

I= 4.57%

Now let calculate YTM

YTM = 4.57%*2

YTM =9.14%

Therefore YTM will be 9.14%

5 0
3 years ago
According to the CAPM, what is the expected market return given an expected return on a security of 17.2%, a stock beta of 1.6,
seropon [69]

Answer:

Expected market return is 13%

Explanation:

CAPM is used to calculate the expected return on an asset for decision making to add any further asset to a well diversified portfolio. It involves different factors like market risk premium, asset beta and risk free rate as well to calculate a return rate which is expected to obtain from underline asset or investment.

As per given data

Expected return = 17.2%

Stock beta = 1.6

Risk free rate = 6%

According to CAPM

Expected Return on security = Risk free rate + Stock beta ( Market Risk Premium )

17.2% = 6% + 1.6 × ( Market Risk Premium )

17.2% = 6% + 1.6 × ( Market return - Risk free rate )

17.2% = 6% + 1.6 × ( Market return - 6% )

17.2% - 6% = 1.6 × ( Market return - 6% )

11.2% = 1.6 × ( Market return - 6% )

11.2% / 1.6 = Market return - 6%

7% = Market return - 6%

7% + 6% = Market return

Market return = 13%

3 0
3 years ago
Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $6,500 of cash sales that are
Mademuasel [1]

Answer:

Journal Entry

General Ledger                   Dr.          Cr.

Cash                                 $7,085

Sales Tax Payable                           $585

Sales                                                 $6,500

Explanation:

Sales tax is the amount of tax collected by the business on the taxable sales from customers on behalf of government and pay it to government after that. Sales tax will be included in the cash received from the customer and recorded as the payable for the business.

Sales Value = $6,500

Sales Tax = 9%

Sales inclusive of Sales tax = $6,500 x 109% = $6,500 x 1.09 = $7,085

8 0
3 years ago
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