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Bezzdna [24]
3 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]3 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.

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Kane manages a used bookstore. He reads a report advising him to stock
sergeinik [125]

Answer:

I would say that the answer is D. If he knows that people don't buy encyclopedia's, yet he stocks them, the store could lose money because no one would buy it.

Explanation:

Hope this helps. :D

4 0
3 years ago
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Limitations of GDP Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transacti
snow_tiger [21]

Answer:

The following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States

B) The costs of overfishing and other overly intensive uses of resources.

C) The value of baby-sitting services, when the babysitter is paid in cash and the transaction isn't reported to the government.

D) The leisure time enjoyed by Americans

Explanation:

GDP is a tool that is used to measure a nation's economic performance, However, it has limitations due to its exclusion of non-market transactions.

  1. The limitations identified can be summarized as:
  2. GDP does not incorporate any measures of welfare.
  3. GDP only includes market transactions.
  4. GDP does not describe income distribution.
  5. GDP does not describe what is being produced.
  6. GDP ignores externalities.

6 0
3 years ago
For 2014, Taxpayer (TP) wants to recognize a deduction. The deduction involves a statute that has not changed since enacted in 1
Vesna [10]

Answer:

Option c. is correct

Explanation:

Under the Golsen rule, the Tax Court must follows the Court of Appeals such that the court of appeals has direct jurisdiction over the taxpayer. The Court is said to reach a decision without calculating the tax when a Tax Court decision is said to be entered under Rule 155.

In this question, The Golsen rule applies here and weakens the legal justification for the deduction

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3 years ago
A customer comes into your shop carrying a gorgeous oval bowl. It’s very large and low, and has a pale gray crackled glaze. He t
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8 0
3 years ago
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Today, you deposit $2,500 of cash in a savings account that earns 8.0% in annualized interest. One interest payment is received
Artemon [7]

Answer:

a. $173

Explanation:

The computation of the amount of interest earned in five years is shown below;

But before that following calculations need to be done

As we know that

Simple interest = Present value × rate of interest × time period

= $2,500 × 8% × 5

= $1,000

Now the future value is

Future value = Present value × (1 + rate of interest)^number of years

= $2,500 ×(1 + 8%)^5

= $2,500 × 1.4693280768

= $3,673

Now the compound interest is

Compound interest = Future value - Present value

= $3,673 - $2,500

= $1,173

Now interest on interest is

Interest on interest = Compound interest - Simple interest

= $1,173 - $1,000

= $173

3 0
3 years ago
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