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Marianna [84]
3 years ago
10

Farmer Jones is producing wheat, and must accept the market price of $6.00 per bushel. At this time, her average total costs and

her marginal costs both equal $8.00 per bushel. Her average variable costs are $5 per bushel. In choosing her optimal output, farmer Jones should:
A.
increase output.
B.
increase selling price.
C.
produce zero output and close down.
D.
reduce output but continue production.
Business
2 answers:
spin [16.1K]3 years ago
7 0

Answer:

Answer is D. reduce output but continue production.

Refer below.

Explanation:

Farmer Jones is producing wheat, and must accept the market price of $6.00 per bushel. At this time, her average total costs and her marginal costs both equal $8.00 per bushel. Her average variable costs are $5 per bushel. In choosing her optimal output, farmer Jones should:

reduce output but continue production

zmey [24]3 years ago
3 0

Answer:

D. Reduce Output but continue production

Explanation:

Since marginal cost equals average total cost, it can be deduce that she's operating at her most productively efficient region. But she's force to sell at a price lower than her average total cost which could indicate a loss in profit. This means that she should stop production. But then again, her average variable cost is less than the market price, therefore it is adviceable for her to reduce output but continue to produce.

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Answer:

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3 years ago
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7 0
3 years ago
If a department that uses process costing starts the reporting period with 100,000 physical units that were 20% complete with re
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Answer:

The correct answer is True

Explanation:

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In other words, the equivalent units is shown thus:

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Answer:

"Problem child" is the correct answer.

Explanation:

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Thus the above is the correct answer.

8 0
3 years ago
if your school supplies cost $28.88 and you gave the cashier $40.00 how much change should you expect to receive ​
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Answer:

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Explanation:

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