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
Bezzdna [24]
2 years ago
9

A firm sells a product in a purely competitive market. The marginal cost of the product at the current output of 200 units is $4

.00. The average variable cost is $3.50. The market price of the product is $3.00. To maximize profits or minimize losses, the firm should
A. Continue producing 1,000 units
B. Produce less than 1,000 units
C. Produce more than 1,000 units
D. Shut down
Business
1 answer:
Eddi Din [679]2 years ago
6 0

Answer:

The correct answer is option B.

Explanation:

A firm sells a product in a purely competitive market.

The marginal cost of the product at the current output of 200 units is $4.00.

The average variable cost is $3.50.

The market price of the product is $3.00.

The market price is not covering the average variable cost. In this situation, the firm must be incurring losses. To minimize losses the firm should produce less than 1,000 units at the point where marginal cost is equal to market price and the average variable cost is being covered.

You might be interested in
A small construction company has $110,000 set aside in a capital improvement fund to purchase new equipment. If $18,000 is inves
romanna [79]

Answer:

21.26%

Explanation:

Overall rate of return = Total amount of dollar returns / Total investment

Overall rate of return =  [($18,000 * 26%) + ($22,000 * 15%) + ($70,000 * 22%)] / $110,000

Overall rate of return = ($4680 + $3300 + $15400) / $110,000

Overall rate of return = $23,380 / $110,000

Overall rate of return = 0.21255

Overall rate of return = 21.26%

8 0
2 years ago
A landlord will usually check your credit report before renting an apartment to you.
Vlada [557]
It is true that a landlord will check your credit report before renting to you.
5 0
3 years ago
Read 2 more answers
Cơ cấu tổ chức của khách sạn intercontinental Đà Nẵng
PtichkaEL [24]

Answer:

owkaowowooaoaoaoaooaoaoaooaoaooaoaoaooa

Explanation:

aooaoaoaoaooaoaoaoaooaoaoao

8 0
2 years ago
When a corporation sells all or substantially all of its assets to another corporation, generally,
Svetllana [295]

Answer:

a. a majority of both shareholders and directors must approve.

Explanation:

Whenever a corporation decides to dispose off all of it's assets or substantially all of it's assets to another corporation, following points are noteworthy

  • The Board of directors first have to propose a resolution regarding disposition which has to be approved
  • Secondly post approval of the said resolution, the act of "disposition" also requires approval by the corporation's shareholders.
  • Such approval must be obtained by majority of the votes cast in it's favor.

In short, disposition of all or substantially all the assets requires an approval of a majority of both shareholders and directors.

4 0
3 years ago
As the price of jeans rises, Levi Strauss is likely to A. decrease production and thus decrease the supply. B. increase producti
LUCKY_DIMON [66]

Answer:

B. Increase production and thus increase the supply.

Explanation:

As the price of Jeans rises, the Levi Strauss is likely to increase production keeping other factors constant as per the law of supply, where quantity is directly proportional to the price of goods and services. As the price of goods increase, the quantity supply of product also increased by supplier or manufacturer to maximize the profit out of the current market condition.

8 0
3 years ago
Other questions:
  • When a purchase on account is made the invoice becomes a debit memo?
    15·1 answer
  • Cullumber Co. leased equipment to Union Co. on July 1, 2021, and properly recorded the sales-type lease at $131,000, the present
    11·1 answer
  • Refer to the original data. assume that the company sold 18,000 units last year. the sales manager is convinced that a 10% reduc
    6·1 answer
  • On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following informati
    5·1 answer
  • Personal values and work values cannot be related. Please select the best answer from the choices provided T F
    10·2 answers
  • What is quantity control?
    6·1 answer
  • What is the present value of a perpetuity that pays you annual, end-of-year payments of $950.00? Use a nominal rate (monthly com
    12·1 answer
  • Value a Constant Growth Stock Financial analysts forecast Best Buy Company (BBY) growth for the future to be 14.00 percent. Thei
    14·1 answer
  • When Social Security was first instituted by President Franklin Roosevelt in 1935, the payroll tax rate on wages used to fund th
    5·1 answer
  • Schultz Electronics manufactures two ultra high-definition television models: the Royale which sells for $1,580, and a new model
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!