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
Lana71 [14]
3 years ago
12

A competitive firm has been selling its output for $20 per unit and has been maximizing its profit, which is positive. Then, the

price falls to $18, and the firm makes whatever adjustments are necessary to maximize its profit at the now-lower price. Once the firm has adjusted, its Question 6 options: 1) quantity of output is lower than it was previously. 2) average total cost is lower than it was previously. 3) marginal cost is higher than it was previously. 4) All of the above are correct.
Business
1 answer:
soldi70 [24.7K]3 years ago
4 0

Answer: 1) quantity of output is lower than it was previously.

Explanation:

In a competitive firm, the Price is the same as the Marginal Revenue and as this firm is maximising its profit, it is the same as Marginal cost as well.

If the price drops to $18, this would mean that the Marginal cost is now higher than the Marginal revenue which means that the company is making losses per every additional unit sold.

Company will respond by cutting production so that it can bring the marginal cost down to the Marginal revenue level thereby resulting in the quantity output being lower than it previously was.

You might be interested in
The forces in _________ collisions with another vehicle, tree or pillar are enormous as the momentum and built up energy are rel
Volgvan
A.) head-on. 
rear-ending cars are going the same direction as you, so they don't hit as hard.
trees aren't part of multi-vehicle crashes (hopefully)
3 0
3 years ago
Once Domino's decided to offer salads, it partnered with "Ready pac foods" to offer each Domino’s Pizza location prepackaged sal
Nady [450]

Answer:

Organisational planning

Explanation:

Organisational planning is an effective way to organise and make plans. Domino's has decided to offer salad for that, they have partnered with 'Ready pac food' to deliver salad at different locations.  The decision to partner with 'ready pac foods' is a part of organisational planning. The organisational planning will help domino's to easily adopt the concept and it will help them to reduce the overall cost.

7 0
3 years ago
Universal Travel Inc. borrowed $500,000 on November 1, 2013, and signed a 12-month note bearing interest at 6%. Interest is paya
valentinak56 [21]

Answer:

C.$5,000.

Explanation:

November 1, 2013

Amount of Loan = $500,000

As the Interest is payable at maturity, at December 31, 2013 only one month of interest expense is accrued, which is not paid, Following Journal entry will be passed tor record the interest expense.

Dr.  Interest Expense               $2,500

Cr.  Interest Payable on Note  $2,500

Interest Expense = $500,000 x 6% x 2/12 = $5,000

6 0
3 years ago
Each of the following items must be considered in preparing a statement of cash flows. Indicate where each item is to be reporte
otez555 [7]

Answer:

Answer 1 - increment in money due will go under working exercises and $4000 will be appeared in negative there since it will decrease the money balance  

Answer 2 - issuance of preferred stock will go under financing exercises and since they are giving offers so income will increment by $115 × 10000 = $1150000  

Answer - 3 For devaluation Because we start setting up the announcement of incomes utilizing the overall gain figure taken from the salary explanation, we have to alter the net gain figure with the goal that it isn't diminished by Depreciation Expense. To do this, we include back the measure of the Depreciation Expense. So we have to add $14000 to net gain of $90000  

For bond premium amortization, its recorded in the working exercises area of the announcement of incomes. Under the roundabout strategy, the amortization of security premium is deducted from net gain since it decreases premium cost and, along these lines, expands net gain without a real money inflow.  

Answer - 4 Acquisition of property will go under contributing activities so in the event that we purchase more place where there is $20000, at that point it will lessen the money by $20000

6 0
3 years ago
Read 2 more answers
Ordinary life insurance involves policies marketed on an individual basis, on which policyholders receive a lump sum payment at
Karolina [17]

Answer:

The statement is: False.

Explanation:

Life Insurance is a financial contract that protects an individual's dependents in the case of his or her death. In life, the policy holder makes payments on a regular basis -typically monthly- to be covered and selects who the beneficiaries will be if he or she passes away. The beneficiaries receive a lump sum of payment only in front of that event.

4 0
3 years ago
Other questions:
  • Choose all that apply.
    8·2 answers
  • You often find that employees choose a health care plan without carefully considering their options. In fact, sometimes employee
    8·1 answer
  • Farmers in developing countries want the united states to reduce the subsidies that it gives to u.s. farmers because subsidized
    14·1 answer
  • In a labor market comprising many firms hiring many workers with identical skills, which of the following is correct?
    14·1 answer
  • Craftwell Inc. pays a​ $0.75 dividend every quarter and will maintain this policy forever. What price should you pay for one sha
    6·1 answer
  • Della, the new CEO of Sky Advertising, has been with the firm for over 25 years. She was picked by the board to turn the 85-year
    12·2 answers
  • Situational leadership theories grew out of an attempt to explain the inconsistent findings about traits and styles. Situational
    6·1 answer
  • Classify each statement about the Federal Reserve System as either true or false.
    15·1 answer
  • Ted is an agent for Waxwing Corporation, an airliner manufacturer, and is negotiating a sale with a representative of the U.S. g
    11·1 answer
  • When your superior offers you a raise if you will perform additional work beyond the requirements of your job, he/she is exercis
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!