Answer: reduce output.
Explanation:
In a competitive market, firms do not have control over the price that they sell their goods in the market but they do have control over their costs. It is recommended to produce/ sell goods at a quantity where Marginal Revenue will equal Marginal cost (MR = MC).
In a Competitive Market, Price is the same as Marginal revenue which means that Marginal revenue here is $25 and the Marginal Cost is $26. At this quantity of output, the Marginal Cost is larger than the Marginal revenue.
Company should therefore reduce output to a quantity where Marginal Cost will equal Marginal revenue.
Answer:
The answer is: D) All of the above are correct.
Explanation:
Theoretically in a market economy, the supply and demand of goods should play a critical role in the allocation of resources. One basic rule in economy is that resources are scarce, and the demand and supply helps us obtain the maximum benefit from our scarce resources.
The supply and demand should tell us how much of a good or service should be produced to reach an equilibrium point were both suppliers and consumers are satisfied.
A true market economy should not be affected by external events and policies but in the real world governments exist and markets are regulated, some more than others. The supply and demand curve should help us predict how those external events will affect the economy.
Answer: $2400 million
Explanation:
Net cash inflow from operations = $4,100 million
Add: Net cash inflow for financing = $3,700 million
Less: Net cash outflow for investing = $6,200 million
Net cash flow during the year will be:
= $4100m + $3700m - $6200m
= $1,600 million
Add: Beginning cash balance= $800 million
Therefore, the cash on the balance sheet at February 2, 20x2 will be:
= $1600 million + $800 million
= $2,400 million