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sdas [7]
3 years ago
6

A firm sells a product in a purely competitive market. The marginal cost of the product at the current output level of 800 units

is $3.50. The minimum possible average variable cost is $3. The market price of the product is $4. To maximize profits, the firm should a. continue producing 800 units. b. decrease production to less than 800 units. c. increase production to more than 800 units. d. shut down.
Business
1 answer:
astraxan [27]3 years ago
5 0

Answer:

The correct answer is option

Explanation:

A firm operating in a perfectly competitive market is producing 800 units. The marginal cost is $3.50. The minimum average variable cost is $3. The market price is $4.  

The firm will be able to maximize its profit at the point where the price of the product is equal to marginal cost and is able to cover the average variable cost of the product.  

This firm should thus increase its production to more than 800 units till the marginal cost is equal to the price which is $4.  

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Anwer owns a rental home and is involved in maintaining it and approving renters. During the year he has a net loss of $8,000 fr
Evgesh-ka [11]

Solution:

(1) Maximum possible $25,000 deduction before phase-out

(2) Maximum deduction phase-out is $22,500

    [($145,000 AGI - 100,000) × 0.5]

(3) Current year overall loss $2,500 (1) - (2)

(4) Rental loss in current year $8,000

(5) Current year leasing deficit of 2,500 dollars, Lesser of (3) or (4)

Passive loss carry forward $5,500 (4) - (5)

8 0
4 years ago
Red Empire Inc., a large multinational company owned by two partners, is active in the petroleum, capital market, chemicals, ste
Nezavi [6.7K]

Answer:

D. A conglomerate

Explanation:

A Conglomerate is a big corporation that is composed of a various combinations of business entities seemingly unrelated but under one corporate group. It is a big organization that has numerous products and services which vary extensively from one another. It is a big parent company comprising of many subsidiaries producing different products and offering different services. In this case, Red Empire is a conglomerate, the parent company having subsidiaries in petroleum, capital markets, chemicals, steel, beverages, hospitality, airlines, education, automobiles, and consumer electronics industries all with their various brand names.

3 0
3 years ago
if sales for april, may, and june were $60,000, $80,000, and $70,000, respectively, what were the firm's budgeted collections fo
xxTIMURxx [149]

We are required to calculate the collection to be made in the month of May.

Based on the credit policy, the collections for the month of May will be as follows:

10% of March Sales - No Information Available

60% of April Sales = 60,000 * .6 = $36,000.

30% of May Sales  = 80,000 * .3 = $24,000.

Therefore, the total collection for May is $60,000 (36,000 + 24,000).

Learn more about this question here brainly.com/question/29451367

#SPJ4

7 0
1 year ago
In order to overcome the ________ problem, interest groups often provide ________ to their members. free-rider; collective goods
Evgesh-ka [11]

The selective benefits are regarded as benefits given only to group members. In order to overcome the free-rider problem, many interest groups offer selective benefits.

  • The free-rider problem is often known as a type of market failure. It takes place when individuals who benefit from resources, public goods or services of a benefit to all nature do not pay for them or they under pay.

They are problem because they do not pay for the goods but still continue to access or use it.

This problem in social science deals with how to limit free riding and its negative effects in the society.

Learn more from

brainly.com/question/20388623

7 0
3 years ago
Alfred, Mario, and Lydia have worked together on the same team for three years. The company has just hired a new personnel direc
Daniel [21]

Answer:

The correct answer is: Adjouring.

Explanation:

To begin with, <em>the model of group development</em> was first proposed by Bruce Tuckman in 1965 and whose main purpose is to focus on the stages that a team must go through in order to accomplish an ultimate goal. Moreover, the the model included 5 different stages: forming, storming, norming, performing and adjouring.

To continue, the last of the stages, the adjouring stage, involves the situation where the team have already accomplished its ultimate goal and must now split in order to every member to be reassigned to other teams and new tasks.

To sum up, <u>Alfred, Mario and Lydia are in the adjouring stage of team development</u> due to the fact that they had already been together for so long and must go on in another teams with another goals.  

6 0
3 years ago
Read 2 more answers
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