Select the correct answer.

A firm in a perfectly competitive industry is currently producing 6,000 units of output and the market equilibrium price for the

OlgaM077 [116]

Answer:

30005

Explanation:

Total Revenue equals price multiple to the quantity produced.

Total Profit= Total Revenue -Total Cost= P*Q- (Variable costs +Fixed Costs)

If we considered TR=P*Q,

in the first period it will be: TR=P*Q=6000*5=30000

in the second period it will be= TR=P*Q= 6001*5=30005

7 0

3 years ago

Use the following information for questions 5 to 11 Company A uses the periodic inventory system. The beginning inventory consis

nika2105 [10]

Answer:

B. 270 units

Explanation:

First , add up all the units

= 360 units + 540 units + 270 units

= 1,170 units

The next step is to deduct the additional units sold from the total units

= 1,170 units - 900 units

= 270 units

Therefore, the number units in the ending inventory is 270.

7 0

3 years ago

Two methods can be used for producing solar panels for electric power generation. Method 1 will have an initial cost of $550,000

PilotLPTM [1.2K]

Answer:

the company should choose method 1

Explanation:

Method 1 Method 2

Initial outlay $550,000 $830,000

operating costs (years 1,2,3) $160,000 $120,000

salvage value $125,000 $324,000

we must determine which alternative has the lowest present value:

method 1 = $550,000 + $160,000/1.1 + $160,000/1.1² + $160,000/1.1³ - $125,000/1.1³ = $550,000 + $145,455 + $132,231 + $120,210 - $93,914 = <u>$853,982 </u>

method 2 = $830,000 + $120,000/1.1 + $120,000/1.1² + $120,000/1.1³ - $324,000/1.1³ = $830,000 + $109,091 + $99,174 + $90,158 - $243,426 = $884,996

5 0

3 years ago

A large oil company requests ¢200 million of liability insurance to cover its oil business. State Insurance Company (SIC) has a

Shalnov [3]

Answer:

a. The reinsurance contract between SIC and Ghana Re is a proportional reinsurance contract. This type of contract specifies that the reinsurer (Ghana Re) will share a fixed proportion of the premiums and losses with the ceding company (SIC). In this case, the contract specifies that Ghana Re will pay 70 percent of the losses and receive 70 percent of the premiums, while SIC will pay 30 percent of the losses and retain 30 percent of the premiums.

b. If a ¢100 million covered loss occurs, SIC will be responsible for ¢30 million of the loss, while Ghana Re will be responsible for ¢70 million of the loss. This is because the contract specifies that SIC will pay 30 percent of the losses, and Ghana Re will pay 70 percent of the losses. In terms of premiums, SIC will retain ¢60 million of the premium, while Ghana Re will receive ¢140 million of the premium, less the ceding commission that is paid to SIC.

6 0

1 year ago

Suppose that Glitter Gulch, a gold mining firm, increased its sales revenues on newly mined gold from $80 million to $160 millio

fredd [130]

Answer:

A. There is no change in real output

B. There is a change of $80,000,000 in the real output.

Explanation:

A. With regards to the question, the output being referred to is the gold amount produced in an imaginary situation.

Sales revenue for the first year is $80,000,000 and it doubled to $160,0000 the following year and the next. Since there is 100% increase in the price of gold over same period, it therefore means that the 100% price increase results in 100% increase in sales revenue.

The above simply means that the actual output of gold from the mine remains the same

B. Where the price remains the same in a possible scenario, it would then be that to achieve full increment in sales revenue(100%), then the actual output of Glitter Gulch would also change by the full output(100%).

The change in value would be

= $160,000,000 - $80,000,000

= $80,000,000

3 0

3 years ago