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Mumz [18]
3 years ago
8

Suppose that a firm operating in perfectly competitive market sells 200 units of output at a price of $3 each. Which of the foll

owing statements is correct? (i) Marginal revenue equals $3. (ii) Average revenue equals $600. (iii) Average revenue exceeds marginal revenue, but we don’t know by how much.
Business
1 answer:
miv72 [106K]3 years ago
4 0

Answer:

The correct answer is option i.

Explanation:

A firm is operating in a perfectly competitive market.  

The firm is selling 200 units of output.  

The price of each unit of output is $3.  

In a perfectly competitive market, a single firm faces a horizontal line demand curve. This horizontal line represents demand, price line, average revenue, and marginal revenue.  

So if the price is $3, it implies that the marginal revenue and average revenue is also equal to $3.  

The total revenue is $600.

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Answer:

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                                  Classified Balance sheet

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        Assets

Current Assets

Cash                                                      xxx

Less Cash Restricted for Plant            <u>xxx</u>               xxx

Expansion

Accounts Receivable                           xxx

Less Allowance for Doubtful debt      <u>xxx</u>                xxx

Notes Receivable                                                      xxx

Receivables-Officers                                                 xxx

<u>Inventory</u>

Finished goods                                     xxx

Work in Process.                                   xxx

Raw Materials                                        <u>xxx               xxx</u>

Total Current Assets                                                                    xxx

Stockholders Equity

Common Stock                                      xxx

Add Paid-in Capital in Excess of           <u>xxx</u>

Par-Common Stock.

Total paid in capital                                                   xxx

Add Retained Earnings.                                            <u>xxx</u>

Total paid in capital and retained earnings             xxx

Less Treasury Stock (at cost)                                    <u>xxx</u>

Total Stockholders Equity                                                            <u>xxx</u>

Total Liability and Stockholders Equity                                       xxx

Liability and Stockholders Equity

<u>Current Liability</u>

Salaries and Wages Payable.                                    xxx

Unearned Subscriptions Revenue.                           xxx

Unearned Rent Revenue.                                          <u>xxx</u>

Total Current Liability.                                                                  xxx

<u>Long term liabilities</u>

Bonds Payable (due in 4 years)               xxx

Less Discount on Bonds Payable            <u>xxx             xxx</u>

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Preferred Stock (Equity) Investments.                         xxx

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Cash Restricted for Plant Expansion.                           <u>xxx</u>

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Total Intangible Assets.                                    .                             <u>xxx</u>

Total Assets.                                    .                                              <u>xxx</u>

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3 years ago
what are the two factors that go into which item is thought of as bought first, etc., when choosing between several possible pur
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Answer:

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8 0
2 years ago
Bates Company plans to add a new item to its line of consumer product offerings. Two possible products are under consideration.
ivolga24 [154]

Answer:

differential revenue = $7

so correct option is a.$7

Explanation:

given data

Product A costs = $6

contribution margin = $3

Product B costs = $12

contribution margin = $4

to find out

the differential revenue for this decision

solution

we get here the differential revenue for this decision that is express

so first we get here selling price for both product that is

selling price product A = Product A costs + contribution margin

selling price product A  = $6 + $3 = $9

and

selling price product B   = $12 + $4 = $16

so now we get differential revenue that is

differential revenue = selling price product B - selling price product A

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differential revenue = $7

so correct option is a.$7

4 0
3 years ago
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Answer:

perceived value

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2 years ago
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