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USPshnik [31]
3 years ago
8

If production is occurring where marginal cost exceeds price, the purely competitive firm will __________.

Business
1 answer:
devlian [24]3 years ago
8 0

Answer:

C. fail to maximize profit and resources will be overallocated to the product

Explanation:

At MC < P, the firm may earn profit but that is not maximum the maximu profit condition is that MR = MC and in perfect competition MR = P so MC = P is the maximum condition.

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Fervana Autos Inc., a large automobile company, made an initial small investment in a startup company that was developing a sola
eimsori [14]

Answer:

real options perspective

Explanation:

A real options perspective means that the investor has the right but not the obligation to invest in the other company, and/or has the right to buy it, but it is not required to do so. In this case, Fervana can invest if it considers it suitable or it can buy the start-up, buit it doesn't need to do anything if it doesn't want to.

5 0
3 years ago
Suppose the European Parliament is considering legislation that will decrease tariffs on agricultural products imported from the
VMariaS [17]

Answer:

€2,500 million

Explanation:

Data provided as per the requirement of estimated benefit to the population is here below:-

Benefit of the tariff reduction = €5

Size of population = €500 million

The computation of estimated benefit to the population is shown below:-

Estimated benefit to the population = Benefit from tariff reduction × Size of population

= €5 × €500 million

= €2,500 million

Therefore for computing the estimated benefit to the population we simply applied the above formula.

4 0
3 years ago
What is a disadvantage of the payback method?
HACTEHA [7]

The statement " It eliminates the inflows of cash earned following the payback period and time value of money" is the disadvantage of the payback method

The payback period is the period thats tells the time period in which the initial investment that was made should be recovered.

It is to be measured in years normally.

For finding the disadvantage, we need to find out the following information related payback period

  1. It is easy to calculate
  2. The cash flows earned after the payback period should not be used
  3. There is no requirement to determine the present value factor for measuring the payback period.
  4. Also, it does not use for distinct cheap projects from lower ones

So this is the reason this method ignored the times value of money

Therefore, we can conclude that, the correct option is b.

Learn more about the payback method here: brainly.com/question/16255939

5 0
3 years ago
Daniel derives utility from only two goods, cake (Qc) and donuts (Qd). The marginal utility that Daniel receives from cake (MUc)
Agata [3.3K]

Answer:

240= 3Qc + 3Qd  

Explanation:

The computation of the Daniel's budget constraint is shown below;

Given that

Daniel's income= $240

Price of cake (Pc) =$3

Price of donuts (Pd) =$3

So spending on cake = 3Qc

And,

Spending on donut= 3Qd

Finally

Total spending = 3Qc + 3Qd

Now the equation of budget constraint is

Income= (quantity of cake)(price of cake) + ( quantity of donut)(price of donut)

So,  

Income= Qc Pc+ Qd Pd

240= 3Qc + 3Qd  

4 0
2 years ago
Cash donations to public charities are limited to % of a taxpayer's AGI. Donations of capital gain property to public charities
Blababa [14]

Answer:

Cash donations to public charities are limited to % of a taxpayer's AGI? Cash donations can be deducted to a maximum of 60% of your AGI.

Donations of capital gain property to public charities are generally limited to % of a taxpayer's AGI? If you hold the assets (whether stock or property) for more than one year, donations can be deducted (at fair market value) to a maximum of 30% of your AGI.

Donations of certain capital gain property to private non operating foundations are limited to % of AGI? When you donate short term capital gain property to private non operating foundations you can deduct up to 30% of your AGI.

3 0
3 years ago
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