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Alla [95]
3 years ago
9

Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per

unit. Its total fixed costs are $100 and its average variable cost is $4 at 20 units of output. This corporation_______
a. shouldclose down in the short run.
b. is maximizing its profits.
c. is realizing a loss of $60.
d. is realizing an economic profit of $40.
Business
1 answer:
Naddik [55]3 years ago
4 0

Answer:

d. is realizing an economic profit of $40.

Explanation:

Calculation to determine what This corporation is realizing as economic profit

Using this formula

Economic profit =Total fixed costs-(Average variable cost )

Let plug in the formula

Economic profit =$100-($3*20)

Economic profit =$100-$60

Economic profit =$40

Therefore This corporation is realizing an economic profit of $40

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Hospitals, colleges and universities, and museums fall into the ______ category of business customers. reseller market governmen
sineoko [7]

Institutional markets are the category under which hospitals, colleges, museums, and universities come.

Institutional organizations buy goods and services for the production of their own goods and services. They are non-profit organizations that are established only to offer services to the public. These markets are categorized as low budgets and captive patrons.

The main player of the institutional department is the government. Most hospitals, colleges, universities, and museums fall under the control of the government. For the other hospitals, colleges, universities, and museums that are under the private players, a seperate account will be maintained by them for maintaining the record of transactions.

The other option like business customers which deals with the normal buying and selling transactions. The reseller market consists of the wholesaler market that sells goods to the retailer for reselling the goods. The government market is where government transactions are carried on. The producer market produces the goods or manufacturers the goods and sells them to the market. So the institutions that are provided all come into the institutional markets.

Learn what is institutional markets here:

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8 0
2 years ago
Dwayne's mortgage application was denied because the credit report noticed several late payments to his credit cards over a 2 ye
Irina-Kira [14]

Answer:

. No, he has not proven he is financially responsible with money previously borrowed.

Explanation:

Dwayne is a high-risk customer.

Most lenders will want to stay away for customers who are perceived as high-risk.  A high-risk customer is one whose probability of defaulting on a loan is above the market average.

Dwayne has missed loan repayments in the recent past. Banks interplate this as an indicator that he is highly likely to default on future loan repayments.  

For Dwayne to qualify for a loan, he has to improve his credit score. He can do that by prompt repayments of debts. He has to find out why he is missing or getting late in meeting his obligations. Most likely, he is taking loans for the wrong reasons.

4 0
3 years ago
ABC Inc. has a dividend yield equal to 3 percent and is expected to grow at a 7 percent rate for the next seven years. What is A
denis-greek [22]

Answer:

option (A) 10 percent

Explanation:

Data provided in the question:

Dividend yield = 3 percent

Expected growth rate = 7 percent

Therefore,

The ABC's required return will be

= Dividend yield + Expected growth rate

or

The ABC's required return = 3% + 7%

or

The ABC's required return = 10%

Hence,

The ABC's required return is option (A) 10 percent

8 0
3 years ago
If one worker can produce 30 units of output and two workers can produce a total of 50 units of​ output, the average product for
pentagon [3]

Answer:

Dejame pensar

7 0
3 years ago
The Warren Watch Company sells watches for $21, fixed costs are $180,000, and variable costs are $15 per watch.
enyata [817]

Answer:

  • 5,000 watches : $150,000  loss
  • 20,000 watches:  $60,000  (Loss)
  • Break-even point = 30,000  units
  • if the selling price rises to 32  = break even points descends to 10,588 units
  • If the selling price rises to $32 but variable costs rises to $26  , the break even point goes back to 30,000units.

Explanation:

Hi, to answer this question we have to apply the next formula:

Profit = Revenue -cost

Where the revenue is equal to the units sold (x) multiplied by the selling price,

R = 21 x  

And cost is equal to the sum of the fixed and variable costs.

C = 15x + 1800

So:

P = 21x-(15x +180,000)

P = x ( 21-15)- 180,000

  • For 5,000 watches:

P = 5000(21-15)-180,000

P = 5000(6) -180,000

P= 30,000-180,000

P=-$150,000  (loss , since is negative )

  • For 20,000 watches:

P = 20,000(6) -180,000

P = 120,000-180,000

P=-$60,000  (Loss)

  • To find the break even point:

R = C

21x = 15x + 180,000

21x-15x =180,000

6 x = 180,000

x = 180,000/6

x =30,000  units

  • if the selling price rises to 32

32x = 15x + 180,000

32x-15x = 180,000

17x =180,000

x = 180,000/17

x = 10,588 units

It descends,

  • If the selling price rises to $32 but variable costs rises to $26  

32x = 26x+180,000

32x-26x = 180,000

6x = 180,000

x = 180,000/6

x =30,000

The break-even point comes back to 30,000 units.

6 0
3 years ago
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