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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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Since the government aimed to make westward migration more appealing to immigrants, "A poor family that coveted property" was primarily those who benefited.

Due to their inability to purchase a farm at an affordable price, many ended up squatting on public property without a valid title. The Harrison's Land Act of 1800 decreased the minimum purchase size from 640 acres to 320 acres and added a credit provision. A quarter of the total cost had to be paid up front, and the remaining amount had to be paid over the course of four years with an extra year added on for late payments.

To learn more about Land Act of 1800 here

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1 year ago
Jarvis is a coffee farmer who wants to hedge his entire coffee crop that will be harvested by September. The December coffee con
aleksandr82 [10.1K]

Answer: Sell four December coffee future contracts at $2.00 per pound

Explanation:

Based on the scenario in the question, the number of contracts that is required for hedging the entire crop will be gotten by dividing the total number of crops by the pounds that are available in one contract. This will be:

= 150,000/37,500

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6 0
3 years ago
3. Do you agree with Graeter’s decision to stop franchising?
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Answer: Yes, I agree with Graeter’s decision to stop franchising?.

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If I was in his position, I'll also like to maintain our products quality. It is vital to keep the family business while also following the laid down principles by those before me. Hence, I agree with his decision.

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2 years ago
"refer to your way, inc. what type of products is sold at your way?"
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3 years ago
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Answer:

<u>Opportunity cost </u>

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Suppose that a university decides to spend $ 1 milion to upgrade personal computers and scientific equipment for faculty rather than spend $  million to expand parking for students . This example illustrates<em><u> opportunity costs.</u></em>

<em>Opportunity cost refers to the cost shifting one opportunity to another opportunity or availing one opportunity in terms of another.</em>  

Formula of Opportunity cost is :

<u>Opportunity cost</u>    =  Total Revenue - Economic Profit

                                    Or

<u>Opportunity cost </u>  = What one sacrifice / What one gain

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