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]
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.

You might be interested in
The effective interest amortization method: Multiple Choice Allocates bond interest expense over the bond's life using a changin
Alex_Xolod [135]

Answer:

The correct option is B,allocates bond interest expense over the bond's life using a constant interest rate.

Explanation:

Assuming a bond was issued for $20,000,000 with stated interest rate(coupon interest rate) of 5% and yield to maturity of 7%,in calculating the bond interest expense,we simply apply the  yield to maturity of 7% to the bond outstanding balance in each year.

From the above, it is clear that the percentage applied to bond outstanding balance over relevant years remains the same,hence option B is absolutely correct

5 0
3 years ago
Which item can help you achieve your career advancement goals?
Luda [366]
hardwork,persevrrence and luck will help me to achive my career advancement goals
7 0
3 years ago
Read 2 more answers
Increasingly, people are buying more fuel-efficient cars that burn less gasoline per mile. This seves people money
Sliva [168]
As the gas prices increase, the demand for electric and fuel efficient cars has greatly increased. People want to avoid spending more money than needed. With new advancements being made technologically, there is not much of a demand for cars that require excessive gasoline.
These new advancements have created a new era of automobiles which in turn creates job openings and economic growth in the auto industry.
Personally, I would rather purchase an electric car, or a car that is more fuel efficient to save more money in the long run.
7 0
3 years ago
Married taxpayers Otto and Ruth are both self-employed and file a joint return. Otto earns $352,000 of self-employment income an
butalik [34]

Answer:

$795.5

Explanation:

To calculate how much 0.9% income they have to pay, the law says anybody that earns above 250000 as married couple is entitled to pay above 0.9%, so for them we will subtract the 250000 from it and also Ruth loss of 13,500

So we have;

(3520000-13500-250000)*0.9%=

$796.5

5 0
3 years ago
Suppose that Steve heads to the local hamburger shop with $3, expecting to spend $2 for his favorite burger and $1 for French fr
PtichkaEL [24]

Answer:

Income effect

Explanation:

The effect is because the customer purchasing power has been changed due to which he is now able to buy more to fulfill his needs and wants. The income effect occurs due to two reasons.

Number 1. The real income of the person has been increased which means his purchasing power has been increased. This means previously you were earning $2000 a month and now you are earning $10000 a month. Now you can buy New Iphone every month because your real income has been increased and this has increased your purchasing power.

Number 2. The price of the product has been fallen and now it is in range of the purchasing power of the customer. This means that if Iphones 11 are available at $100 then everybody buy Iphone 11. This is because the product is in the range of purchasing power of greater number of customers.

5 0
3 years ago
Other questions:
  • How do you determine a percentage of someone's annual wages for savings/tax purposes?​
    14·1 answer
  • Rinker Audio Products has a fully-staffed purchasing department that procures various inputs. It also has various domestic manuf
    14·1 answer
  • Which investment type typically carries the least risk?<br> individual stock
    10·1 answer
  • Exercise D Viking Corporation is operating at 80% of capacity, which means it produces 8,000 units. Variable cost is $100 per un
    6·1 answer
  • Alicia sold her personal residence to Rick on June 30 for $295,000. Before the sale, Alicia paid the real estate tax of $4,425 f
    5·1 answer
  • Please discuss the impact of monetary policy tightening with regards to both unemployment and inflation with respect to both the
    13·1 answer
  • Gibson Guitar Corporation has chosen to build instruments one at a time, by hand. Gibson's century-old tradition of creating inv
    13·1 answer
  • Universal Travel Inc. borrowed $498,000 on November 1, 2021, and signed a 12-month note bearing interest at 7%. Interest is paya
    12·1 answer
  • Banks are financial intermediaries that: have customer deposits as its primary asset and loans to borrowers as their primsry lia
    6·1 answer
  • Nedra uses her debit card on a daily basis. The last time she used it was the evening before at a restaurant. This morning, she
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!