Help with number nine question please

If the market price of a product is between the minimum average variable cost (AVC) and minimum average total cost (ATC) of a fi

Elenna [48]

Answer:

c) produce in the short run but shut down in the long run.

Explanation:

Option C is correct because the price charged is above the average variable cost which means the firm is still covering its variable cost of production. Moreover, if the firm still continues the same in the long run then it will shut down its operation. But if the price charged is below or equal to average variable cost then the firm will shut down its production even in the short run.

7 0

2 years ago

The Talbot Corporation makes wheels that it uses in the production of bicycles. Talbot's costs to produce 180,000 wheels annuall

Evgen [1.6K]

Answer:

If the company chooses to buy the wheels, income will increase by $69,000.

Explanation:

First, we need to calculate the total relevant cost of production:

Relevant cost of production:

Total cost= direct material + direct labor + avoidable overhead

Total cost= 36,000 + 54,000 + (27,000 + 45,000)

Total cost= $162,000

Now, the total cost of buying the wheels:

Total cost= 180,000*0.8 - 51,000= $93,000

Difference= 93,000 - 162,000= -$69,000

If the company chooses to buy the wheels, income will increase by $69,000.

3 0

2 years ago

A company is selling used office equipment for $12,000.

FromTheMoon [43]

Answer:

ans-b

Explanation:

The ans is b, hope it helped you.Have a nive day

4 0

2 years ago

If beginning inventory is $60,000, cost of goods purchased is $380,000, and ending inventory is $50,000, cost of goods sold is $

k0ka [10]

Answer:

390,000

Explanation:

The cost of goods sold is the expense incurred in producing goods to be sold in a period. It is abbreviated as COGS.

The cost of goods sold is calculated using the formula

COGS = opening stock + purchase/ cost of goods manufactured - ending stock

In this case:

Beginning stock = $60,000

Ending stock =$50,000

Cost of goods manufactured $380,000

COGS= $60,000 + $380,000- $50,000

COGS = $390,000

5 0

2 years ago

Barb's Soccer Ball Company produces 800 soccer balls per week. If the firm used marginal cost pricing to determine soccer ball o

sesenic [268]

Answer:

D. The cost of producing the additional 200 soccer balls is greater than the amount that consumers are willing to pay for the additional soccer balls.

Explanation:

The optimal production is where : Marginal cost of production = Marginal benefit from production.

Marginal cost & marginal benefit refer to additional cost (incurred by producers) & additional benefit (by consumers), associated with the additional production level. Marginal Benefit also reflect the consumers' (buyers') willingness to pay for the additional product. So, it is analogous to demand curve.

Soccer balls optimal production level is where : its marginal cost = marginal benefit (price as per demand curve). It implies the production level of 600 soccer balls, as at that level 'marginal cost = marginal benefit = price'.
However, it is producing 800 soccer balls. Marginal cost is higher than marginal benefit (price paying willingness) at this production point, of these additional 200 soccer balls.

5 0

1 year ago