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VMariaS [17]
3 years ago
12

A competitive firm maximizes profit by choosing a level of output where the world price is equal to the firm's

Business
1 answer:
klemol [59]3 years ago
6 0

Answer: c. Marginal Cost

Explanation:

A Competitive firm operates in a market where they are price takers. This means that the price they charge is equal to both their average revenue and their Marginal Revenue.

P = MR = AR

Companies maximise profit at a point where Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized.

If the Competitive firm's Price is the same as its Marginal Revenue this means that to maximise profits, the firm should choose an output level where the price is equal to the marginal cost.

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Cullumber Company has the following balances in selected accounts on December 31, 2020.
wolverine [178]

Answer and Explanation:

The adjusting entries are shown below:

1. Interest expense [$11,400 × 9% × 4 ÷ 12] $342  

    To Interest payable  $342

(being accrued interest expense is recorded)  

2. Supplies expense [$2,200 - $820] $1,380  

     To Supplies  $1,380

[Being supplies expense is recorded]  

3. Depreciation expense $1,200  

     To Accumulated depreciation-Equipment $1,200

[Being depreciation expense is recorded]  

4 Insurance expense [$3,960 × 7 ÷ 12] $2,310  

          To Prepaid insurance  $2,310

[being insurance expense is recorded]  

5  Unearned service revenue $7,000  

             To Service revenue $7,000

[Being revenue from unearned is recorded]  

6 Accounts receivable $4,200  

         To Service revenue  $4,200

[Being accrued service revenue is recorded]  

7 Salaries expense [$5,400 ×  3 ÷ 5] $3,240  

          To Salaries payable $3,240

[being accrued salaries expense is recorded]

4 0
2 years ago
Discuss whether or not demand for laser eye surgery will become more inelastic over time
Iteru [2.4K]

Answer:

It will be demanded more or used more because as we advance in technology more people will start to use these new electronics so many people with get their eyesight ruined by the constant blue light their eyes are receiving which will lead to people getting laser eye surgery to fix their damaged eyes.

Explanation:

3 0
3 years ago
During the past 1000 years, the income per person of the world has
Mamont248 [21]

Answer: Has increased.

Explanation: Income per person has increased over the years because the cost of living and expenses have also increased. As the cost of items go up, income increases to help consumers be able to afford living and purchasing goods and services.

5 0
3 years ago
When the price of insulin was $10 consumers demanded 100 units, when the price was $15 consumers demanded 100 units, and when th
Flura [38]
Very straightforward
8 0
3 years ago
An office building is expected to create operating cash flows of $30,500 a year for three years, based on tenants' rental income
Tasya [4]

Answer:

The net present value of this project is $5,809.78.

Explanation:

Note: See the attached excel file for the calculation of net present value of this project.

In the attached excel file, the discounting factor is calculated as follows:

Discounting factor = 1 / (100% + required rate of return)^n

Where n is a particular year in focus.

From the attached excel file, we have:

Net present value = $5,809.78

Therefore, the net present value of this project is $5,809.78.

Download xlsx
5 0
2 years ago
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