Afirm producing good y recently increased monthly production from 1,500 units to 2,000 units. this had no impact on the market price of good y. at the new production level of 2,000 units, thefirm's average cost is $3.5 while its marginal cost of production is $4. the marginal revenue however is fixed at $5 for all levels of output. jake williamson is the operations head of the firm. jake feels that, since the firm has the capacity, it should have increased production further to 2,500 units which would have maximized profits. on the other hand, mathew hayden of the market research team anticipates an increase in price to $5.5 in the near future. he therefore claims that the firm may not be maximizing economic profit in the short run even at 2,500 units.
which of the following is most strongly implied by thisinformation?
a. at the current level of production, the firm is making a profit of $3,000.
b. the current price of good y is equal to $4.
c. mathew feels that the demand curve faced by the firm will shift downward.
d. jake thinks that at the production level of 2,500 units, the average cost of producing y will be equal to the market price.
e. the demand curve currently faced by the firm is horizontal at$4.
Answers: 3
Business, 22.06.2019 10:00, kortlen4808
mary's baskets company expects to manufacture and sell 30,000 baskets in 2019 for $5 each. there are 4,000 baskets in beginning finished goods inventory with target ending inventory of 4,000 baskets. the company keeps no work-in-process inventory. what amount of sales revenue will be reported on the 2019 budgeted income statement?
Answers: 2
Business, 22.06.2019 15:20, byler47
Capital financial corporation will lend 90 percent against account balances that have averaged 30 days or less; 80 percent for account balances between 31 and 40 days; and 70 percent for account balances between 41 and 45 days. customers that take over 45 days to pay their bills are not considered acceptable accounts for a loan. the current prime rate is 16.50 percent, and capital charges 3.50 percent over prime to charming as its annual loan rate. a. determine the maximum loan for which charming paper company could qualify.
Answers: 1
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