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Alchen [17]
3 years ago
13

Explain why to maximize profits a firm needs to produce an output at a level where marginal revenue

Business
1 answer:
Orlov [11]3 years ago
8 0

Answer:

Rest of question:

... equals marginal cost.

Firms will maximize profits at the point where marginal revenue equals marginal cost because producing after this point means that no profits will be made.

As long as the Marginal revenue exceeds marginal cost, there will be profits made because the company is making more than it is spending so they should keep producing. When it gets to a point in production where the marginal revenue equals marginal cost, the company should not produce further than that.

This is because, as earlier mentioned, any further production would result in the marginal cost being larger than the marginal revenue which means that a loss will be made. The company should therefore stop at the point where MR = MC so as not to let MC get larger than MR so that no losses will be made.

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A company recently lowered its service performance from 99 percent product availability to 97 percent product availability. The
Degger [83]

Answer:

less than $1 million.

Explanation:

According to my research, I can say that based on the information provided within the question this next change is likely to save less than $1 million. We can predict this since the first change saved $1 million but was a reduction of 3%, the second change is a reduction of 2% so it will most likely not reach 1$ million in savings  

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

7 0
4 years ago
A customer sells 1 ABC Corporation put for 2 on February 22, 2019, with a strike price of 50 and an expiration date of March 16,
Deffense [45]

Answer: a. He has an acquisition cost of $4,800 and a date of acquisition of March 15, 2007.

Explanation:

A Put amount gives the holder the right to sell underlying assets. As the Put was exercised, the customer would have to buy the underlying stock and the price they will pay for it is the strike price of the Put less the cost of the Put.

Options contracts come in 100s so;

Acquisition cost = (50 - 2) * 100

= 48 * 100

= $4,800.

The date of acquisition is the day the put was exercised.

8 0
3 years ago
Deb and Rusty know that buying a house will save them money on taxes because they get to deduct the interest they pay to the ban
Margarita [4]

Answer:

Their income after 20 years would be 72,550 dollars.

Explanation:

The income after 20 years can easily de determin by using compounding

formula

Future Value = Present Value (1 + I)^ 20

                      = 90,000 (1 + 0.03)^ 20

                      = 162,550 dollars

Income can be determing by subtracting Pv from Fv i.e

Income = 162,550 - 90,000 = 72,550

Calculation on excel sheet

       A                        B                  C                         D                

1     90,000             1.03            = A1 * 1.03        = C1-A1        

2      = D1                  1.03           = A2 * 1.03       = C2-A2

20    = D19               1.03           = A20 * 1.03      = A20 - C20

* In work sheet colunm D will show income on investment.

4 0
4 years ago
All of the following qualitative considerations may impact upon capital investment analysis except a.market opportunities b.manu
Murljashka [212]

All of the following qualitative considerations may impact upon capital investment analysis except manufacturing sunk cost .

Option c

<u> Explanation: </u>

In a manufacturing setup or any business environment Capital investment plays a major role. To do the long term investment and to assess the profitability the company will do a budgeting procedure is called the capital investment analysis.

The assessment of fixed assets like equipment, machines of a manufacturing sector is done by the capital investment analysis. From the above the manufacturing sunk cost is not considered for the analysis because it the money which has spent already that cannot be recovered.

4 0
3 years ago
Which non-income factor for a potential job would influence a person who needs to be
Masja [62]

Answer:

The non-income factor for a potential job which would influence a person who needs to be  available to drive children to and from school and activities is:

O Independence.

Explanation:

Independence, obtained through as a self-employed person or as an independent contractor, enables the worker to be available to drive her children to and from school and their various school-related activities.  The working hours of a self-employed person or an independent contractor are largely self-determined.  She can also choose appropriate location for her business office.

4 0
3 years ago
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