1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Serjik [45]
3 years ago
12

The table below shows the weekly marginal cost (MC) and average total cost (ATC) for Buddies, a perfectly competitive firm that

produces novelty ear buds in a competitive market. The market price of ear buds is $6.00 per pair. Buddies Production CostsQuantity of Ear Buds MC ATC ($) ($)5 - 80 2 515 2.45 4.1520 3.55 425 4 430 5.5 4.2535 6 4.540 8.5 5A. If Buddies wants to maximize its profits, how many pairs of ear buds should it produce?B. At the profit-maximizing quantity, what is the total cost of producing ear buds?C. If the market price for ear buds is $6 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what is Buddies weekly profit?D. If the market price is $5.50 per pair, and Buddies produces the profit-maximizing quantity of ear buds, what is Buddies weekly profit?E. Buddies earns a normal profit whena. marginal cost equals average cost at the minimum of average cost.b. marginal cost equals average cost.c. marginal cost equals marginal revenue at the minimum of marginal cost.d. average cost equals average revenue at the minimum of average cost.
Business
1 answer:
irga5000 [103]3 years ago
3 0

Answer and Explanation:

The computation is shown below:

a. The number of pairs of ear buds that should be produced for maximizing the profits is

As we know that

MR = MC

Q =  35

And also the price is equal to the MC

Hence, the quantity that should be produced would be 35

b). The total cost of producing ear buds for maximizing the profit is

As we know that

TC = ATC × Q

= 4.5 × 35

= $157.5

c. The weekly profit is

As we know that

Profit = TR - TC

= (P - ATC) × Q

= (6 - 4.5) × 35

= $52.5

d) The weekly profit is  

Profit= (5.5 - 4.25) × 30

= $37.5

e. The normal profit could be earned at the time when the marginal cost is equivalent to the average cost that contains the minimum

Hence, the option a is correct

You might be interested in
Under which one of the following circumstances can an MRP system be used to its best advantage?
Drupady [299]

Answer:C. When the item demand is constant

Explanation:

MRP means material requirement planning it shows when materials needs to be replenish for inventory production, so that inventory is only produced as at when needed.

A constant demand will help to determine perfectly when material is needed.

5 0
3 years ago
The following information is for Chambersburg Corp. for 2018 and 2017. Chambersburg uses the straight-line depreciation method.
photoshop1234 [79]
Gghjuuujh handkerchiefs 2.5
6 0
2 years ago
Greg needed to earn some money to help pay for
son4ous [18]

It would depend on which Greg you are referring to.

<span>If it’s Greg from Cabin Fever, he needed more money to buy gifts.</span>

If it Greg from the Diary of a Wimpy Kid, he needed more money to buy food, more specifically cookies.

5 0
3 years ago
Instead of living in a service economy, we now live in a(n) ________ economy.
Nataly [62]

Instead of living in a service economy, we now live in a(n)  Mixed economy.

Explanation:

  • A mixed economy consist of  both private and government /state owned economies which  share control of owning, making, selling, and exchanging good in the country.
  • U.S. and France are two example of Mixed Economy
3 0
3 years ago
Suppose that you deposit? $10,000 in an account that pays? 6% interest and you want to know how much will be in your account at
dimaraw [331]

Answer:

B.    =PV(.06,10,0,10000)

Explanation:

In MS Excel the formula of Present value re is as  "=PV( rate, nper, pmt, [fv] )".

PV = Present value

rate = Interest rate= 6% = 0.06

nper = number of periods  = 10

pmt = payment made each period = 0 in this scenario

fv = future value = 10,000

So, according to the formula the correct sequence is =PV(.06,10,0,10000)

which is correctly mentioned in option B.

3 0
3 years ago
Other questions:
  • Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of its products. The company has
    10·1 answer
  • Hanschu Inc. issues an $800,000, 10%, 10-year mortgage note on December 31, 2019, to obtain financing for a new building. The te
    11·1 answer
  • In which of the following situations would you prefer to be the​ lender? A. The interest rate is 4 percent and the expected infl
    5·1 answer
  • If a radio station holds an online contest in which you must log in to its website and submit personal details such as name, pho
    14·1 answer
  • The following balance sheet information was provided by Western Company: Assets Year 2 Year 1 Cash $ 4,000 $ 2,000 Accounts rece
    5·1 answer
  • U.S. laws require equality in the workplace for all employees. U.S. citizens who take a job in Germany cannot sue their German e
    8·1 answer
  • A CSR should not use email, newsletters, managers and other
    7·1 answer
  • ________ marketing consists of activities undertaken to create, maintain, or change attitudes toward particular people. People r
    7·1 answer
  • S.I.D. Asset Management initiated an open-end and a closed-end mutual fund a few years ago. If you want to invest in the funds t
    8·1 answer
  • An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!