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Elena L [17]
3 years ago
6

A competitive firm maximizes profit at an output level of 500 units, market price is $24.00, and ATC is $25.25. At what range of

AVC values for an output level of 500 would the firm choose not to shut down in the short run?
Business
1 answer:
stich3 [128]3 years ago
6 0

Answer:

$24>AVC

Explanation:

Data provided

Quantity = 500 units

Market price = $24

ATC = $25.25

As per the situation, a firm a would shut down if,

P<AVC

Therefore, the condition for not shutting down is,P>AVC

From the above equation we will get

= $24>AVC

Therefore the correct answer is $24>AVC

If AVC is less than $24 the company will decide not to shut down and at the current price it will cover its rising costs.

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3 years ago
Allo Foundation, a tax-exempt organization, invested $200,000 in cost-saving equipment. The equipment has a five-year useful lif
murzikaleks [220]

Answer:

$34,310.45

Explanation:

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NPV can be calculated using a financial calculator  

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When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

Cash flow in year 0 =  $-200,000

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To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

6 0
3 years ago
Suppose the gdp is in equilibrium at full employment and the mpc is .80. if government wants to increase its purchase of goods a
melamori03 [73]

<span>The marginal propensity to consume is a metric that quantifies the concept of increase in consumption with an increase in income. Mathematically MPC is defined as:</span>

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Change in income = $20 billion

<span>Therefore the government should increase the tax collection by $20 billion.</span>
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Answer:

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