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3 years ago

If a competitive firm can increase its profits by increasing its output, then the firm's:

1 answer:

3 0

If the firm can increase its profit by increasing its output then the firm is not producing at where the marginal cost is equal to the marginal revenue. A profit-maximizing firm in a competitive market will produce its output at the point in which MC=MR.

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Will the current market situation cause the price to go up, go down, or stay the same?

dusya [7]

Because Demand is up and supply is down companies are going to start demanding a higher price for their product since there are less on the market

5 0

3 years ago

Gabe industries sells two products, basic models and deluxe models. Basic models sell for $44 per unit with variable costs of $2

Dima020 [189]

Answer:

See below

Explanation:

Basic models Deluxe models

Sales price $44 $54

Variable costs $25 $25

Contribution margin $9 $29

Sales mix 1 3

Total contribution margin $9 $87

Contribution margin per unit = $9 + $87 = $96

Weighted contribution margin= Total contribution margin / Units

= $96 / $4

= $24

Break even point = Total fixed costs / Weighted contribution margin

Break even point = $1,441 / $24

Break even point = 60 units

•Basic units = 60 × 63.33% = 38 units of basic

•Deluxe units = 60 × 43.33% = 26 units of Deluxe units

6 0

2 years ago

Oscar's Flower Shop maximizes profits by hiring four workers in a perfectly competitive labor market. The workers and their valu

MissTica

Answer: A. In equilibrium, each worker is paid is or her value of marginal product of labour.

Explanation:

Marginal productivity of income distribution refers to the additional revenue derived from the marginal unit of product produced and that wages should be equal to the marginal revenue derived from the production of additional or marginal product and this is achieved at equilibrium.

The theory also implies that workers should not be paid below or above the marginal revenue derivable from marginal product which implies they cannot be paid $15 or $40, moreover the product price is not a determinant of wages rate.

7 0

3 years ago

Select the benefits of monitoring goal progress.

kobusy [5.1K]

Keeps you on track or gives you feedback.

8 0

3 years ago

Read 2 more answers

On January 1, 2016, the Accounts Receivable balance was $28,100 and the balance in the Allowance for Doubtful Accounts was $3,20

g100num [7]

Answer:

Net Accounts receivable = $24900

so correct option is c) $24,900

Explanation:

given data

Accounts Receivable balance = $28,100

Doubtful Accounts = $3,200

uncollectible account = $940

to find out

net realizable value of accounts receivable immediately

solution

we get here first Accounts receivable that is

Accounts receivable = Accounts Receivable balance - uncollectible account ...............1

Accounts receivable = $28,100 - $940

Accounts receivable = $27160

and

allowance will be here

allowance = Doubtful Accounts - uncollectible account .................2

allowance = $3,200 - $940

allowance = $2260

so Net Accounts receivable is

Net Accounts receivable = $27160 - $2260

Net Accounts receivable = $24900

so correct option is c) $24,900

4 0

3 years ago