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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

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C. $9.50 per direct labor-hour

Explanation:

The computation of the predetermined overhead rate is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

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Answer:

The answer is because of the nature of each business and that is explained below.

Explanation:

On the one hand, when it comes to e-business scenarios the people who work in those places know that it is much more complex due to the fact that the managers are dealing with information that is wide range in terms of searching engine, clicks on the website, marketing approaches and more. The owners of this type of business must know how to work with all type of tools that could help the business grow and all that information can be difficult to read and to use sometimes due to the big changes that happen in the internet and in the general public movements every day that will affect your clientele.

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Answer:

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