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pogonyaev
3 years ago
9

A firm producing good Y recently increased monthly production from​ 1,500 units to​ 2,000 units. This had no impact on the marke

t price of good Y. At the new production level of​ 2,000 units, the​firm's average cost is​ $3.5 while its marginal cost of production is​ $4. The marginal revenue however is fixed at​ $5 for all levels of output. Jake Williamson is the operations head of the firm. Jake feels​ that, since the firm has the​ capacity, it should have increased production further to​ 2,500 units which would have maximized profits. On the other​ hand, Mathew Hayden of the market research team anticipates an increase in price to​ $5.5 in the near future. He therefore claims that the firm may not be maximizing economic profit in the short run even at​ 2,500 units.
Which of the following is most strongly implied by this​information?
A. At the current level of​ production, the firm is making a profit of​ $3,000.
B. The current price of good Y is equal to​ $4.
C. Mathew feels that the demand curve faced by the firm will shift downward.
D. Jake thinks that at the production level of​ 2,500 units, the average cost of producing Y will be equal to the market price.
E. The demand curve currently faced by the firm is horizontal at​$4.
Business
1 answer:
MAVERICK [17]3 years ago
7 0

Answer:

A. At the current level of​ production, the firm is making a profit of​ $3,000.

Explanation:

Units produced at first scenario 1500

Units produced at second scenario 2000

$3.5 average cost

$4 marginal cost

$5 marginal revenue x 2000 units=$10.000

(-) $3.5 x 2000 units                        =$7.000

_____________________________________

Profit                                                  =$3000

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The following that is not a type of qualitative forecasting is<u> </u><u>Moving Averages</u>

Qualitative forecasting has to do with the use of feedback and other research data to make a prediction about how the finances of a company is likely to change in a period of time.

This qualitative research is done by making analysis of the amount of money gotten in the past by the company to estimate future financial operations.

There are four types of qualitative forecasting such as:

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Therefore, the correct answer is Moving Averages.

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7 0
3 years ago
On October 1, Company B records 1 year of prepaid rent in an income statement account then adjusts for the unexpired prepaid ren
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Answer:

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E.g. something like this happened

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they should have recorded it as:

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