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USPshnik [31]
2 years ago
7

Assume a monopolistically competitive firm faces the following situation: P $20, output 13,000 units, MC 16 ATC $22, AVC = $15,

and MR = $16 which statement BEST describes the firm's situation?
1. The firm would maximize its profits by decreasing its output
2. The firm is earning a normal profit, indicating that the market is in a long-run equilibrium
3. The firm would minimize its losses by increasing its output
4. The firm is minimizing its losses.
Business
1 answer:
anygoal [31]2 years ago
7 0

Answer:

4. The firm is minimizing its losses OR maximizing its Profit

Explanation:

Assume a monopolistically competitive firm faces the following situation:

P $20, output 13,000 units, MC 16 ATC $22, AVC = $15, and MR = $16 which statement BEST describes the firm's situation?

The statement that best describes the firm situation is that it is maximizing its profit or minimizing its losses because profit is maximized where Marginal cost is equal to marginal revenue, and that is the case of this firm. MC=MR at $16.

In conclusion, since the firm is maximizing profit, it needs not change anything but to keep producing at this level of output and price.

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6. What aggregate planning difficulty that might confront an organization offering a variety of products and/or services would n
sukhopar [10]

Explanation:

Aggregate planning can be defined as a marketing tool whose objective is to develop a 6 to 18 month plan for the organizational production process, in order to plan in advance the need for the amount of materials and resources that a company needs to have in each period time, so costs are reduced.

Some aggregate planning decisions involve the amount of subcontracting items, the amount of outsourcing, overtime hours, the amount of inventory to be maintained and to be accumulated in a certain period, etc.

Aggregated planning helps the organization to meet demand and supply in a period of time, and it is also possible to be an instrument of influence on supply and demand, so an organization that offers a variety of products and / or services could face difficulties management of all the variables necessary for the production of varied items, as this planning takes time, affects costs, customer satisfaction, synchronization of the supply chain, etc.

8 0
2 years ago
Five hundred small almond growers operate in areas with plentiful rainfall. The marginal cost of producing almonds in these loca
notka56 [123]

Answer:

Explanation:

Where Price equals marginal cost ( MC ) , supply will be made .

A ) Supply curve for rainfed area  almond growers

P = .02 Q

Q = 50 P

Supply curve for drier area growers

P = .04 Q

Q = 25 P

B ) No of growers of rainfed area = 500

no of growers of dry area = 300

Total supply = Qs = 50 P x 500 + 25 P x 300

= 25000 P + 7500 P = 32500 P

C )

Market demand Qa = 105000 - 2500 P

For equilibrium Qa = Qs

32500 P = 105000 - 2500 P

35000 P = 105000

P = 3

D ) Qs = 32500 x 3 = 97500 .

E ) amount by rainfed growers

= 500 x 50 x 3 = 75000

amount by dry area growers = 300 x 25 x 3 = 22500

7 0
2 years ago
Jaiden is in 6th grade and plans to attend college. He has created a college preparation plan. 1. He will fill out the FAFSA for
zimovet [89]

Answer: All apply

Explanation:

8 0
2 years ago
Read 2 more answers
Hilltop Paving has a levered equity cost of capital of 14.92 percent. The debt-to-value ratio is 0.4, the tax rate is 34 percent
Klio2033 [76]

Answer:

c. 12.56%

Explanation:

Debt-to-value=D/(D+E) =0.4=> D=0.4D + 0.4E => 0.6D = 0.4E => D/E=4/6=2/3

According to M&M proposition II with taxes,

re=r0+(D/E)(r0-rd)(1-Tax rate) . Where re= levered cost of equity(or cost of equity when the firm is levered)=.1492, r0 = unlevered cost of equity,Tax rate=34%=.34, rd=pretax cost of debt=7.2%=0.072,D/E=2/3

re = r0+(2/3) * (r0 - 0.072)*(1-.34)

=> 0.1492=r0(1+(2/3)*(1-.34)) -(2/3)*(.072)*(1-.34)

=> 0.1492 = r0(1+0.44) -0.03168

=> 0.1492 = 1.44*r0 -0.03168

r0 = (.1492+0.03168)/1.44

r0 =0.1256

r0 =12.56%

Thus, r0=unlevered cost of equity=12.56%

8 0
2 years ago
Which of the following is a true statement? Question 9 options: when making decisions about saving and borrowing, people care ab
slamgirl [31]

Answer:

A falling interest rate will lead to a movement along the demand curve for loanable funds

Explanation:

A movement along the demand curve for a good or service is caused by a change in the price of the good or service.

Because the interest rate is the price of the loanable funds, a falling interest rate will cause a movement along the demand curve for loanable funds. More specifically, a falling interest rate, in other words, a lower price, will increase the demand for the loanable funds, so the movement will be upwards.

6 0
2 years ago
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