Answer:
- marginal revenue equals marginal cost.
- expand; increase profitability
Explanation:
A monopoly would seek to maximize its profit at a point where marginal revenue will equal marginal cost because at this point, resources are being fully and efficiently utilized. If more cost was incurred to produce then marginal cost would exceed marginal revenue and lead to losses.
The same goes for the firm producing at a quantity where marginal revenue is larger than marginal cost. They should expand their production levels so that their marginal cost equals marginal revenue as this will increase profitability.
Answer:
The correct answer is B.
Explanation:
Giving the following information:
The Clyde Corporation's variable expenses are 35% of sales. Clyde Corporation is contemplating an advertising campaign that will cost $27,000 and will increase sales by $88,000.
Effect on income= Increase on income - variable costs - fixed costs
Effect on income= 88,000 - (0.35*88,000) - 27,000= $30,200
The cash payments journal contains account to be credited.
Answer:
The answer is A.
Explanation:
Other things remaining equal, the law of demand says that the higher the price, the lower the quantity demanded and the lower the price the higher the quantity demanded.
Suppose a good is being sold at $5 and 20 quantities are being demanded, if the price increases to $6, lesser of that goods should be demanded
