If the firm's lowest average cost is $52 and the corresponding average variable cost is $26, what
Question:
The market price is $51?
The price is $36?
The price is $12?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (7 reviews)
If the market price is 51 then under perfect competition firm will not s...View the full answer
Answered By
Charles mwangi
I am a postgraduate in chemistry (Industrial chemistry with management),with writing experience for more than 3 years.I have specialized in content development,questions,term papers and assignments.Majoring in chemistry,information science,management,human resource management,accounting,business law,marketing,psychology,excl expert ,education and engineering.I have tutored in other different platforms where my DNA includes three key aspects i.e,quality papers,timely and free from any academic malpractices.I frequently engage clients in each and every step to ensure quality service delivery.This is to ensure sustainability of the tutoring aspects as well as the credibility of the platform.
4.30+
2+ Reviews
10+ Question Solved
Related Book For
Economics Principles and Policy
ISBN: 978-0538453653
12th edition
Authors: William J. Baumol, Alan S. Blinder
Question Posted:
Students also viewed these Corporate Finance questions
-
Warm Boots manufactures and sells a patented ski boot with 9-volt batteries designed to keep a skier's feet warm even when the outside temperature reaches -10 Celsius. Warm Boots is organized into...
-
Williamson, Inc., has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is 10 percent, and its pretax cost of debt is 6 percent. The tax rate is 35 percent. a. What is the...
-
SML and WACC an all equity firm is considering the following projects: The T-bill rate is 5 percent, and the expected return on the market is 12 percent. a. Which projects have a higher expected...
-
PROJECT SCENARIO You are recently appointed as the IT Consultant and Software Architect in BMS a Software Architect firm. As your first project, you are assigned by the Project Manager to propose and...
-
Calculate the vertical exaggeration of Fig. 1.4.
-
Retail outlets purchase snowboards from Skulas, Inc., throughout the year. However, in anticipation of late summer and early fall purchases, outlets ramp up inventories from May through August....
-
The following readings were taken during a test on a single-cylinder, four-stroke gas engine : Calculate (a) IP, (b) BP, (c) BSFC, (d) brake thermal efficiency, and (e) relative efficiency. Speed of...
-
Explain how REA databases are able to support financial statement reporting when they do not employ journals and ledgers.
-
Generally, the higher the risk involved in investing, the more investors tilt their preferences toward preferred equity and the higher is the cost of common/ordinary shares compared to preference...
-
Fred has centralized the purchasing and record-keeping functions for his three pharmacies in a single office. The annual costs of the office are allocated to the three stores. The Hillside store is...
-
How well did Albanese manage the pricing and purchasing changes at Sunflower? Were the changes implemented successfully? How would you find this out?
-
Classify the following items as (a) prepaid expense, (b) unearned revenue, (c) accrued revenue, or (d) accrued expense: 1. A two-year premium paid on a fire insurance policy. 2. Fees earned but not...
-
Describe the difference between primary and support activities using value chain analysis.
-
Task Master Enterprises employs a standard cost system in which direct materials inventory is carried at standard cost. TaskMaster has established the following standards for the prime costs of one...
-
On January 1 , 2 0 2 1 , Frontier World issues $ 3 9 . 1 million of 9 % bonds, due in 2 0 years, with interest payable semiannually on June 3 0 and December 3 1 each year. The proceeds will be used...
-
From the information given, in 5 lines, say what this means for the possible direaction of the FX changes What difficulties whould these big mac prices cause for McDonalds franchise either side of...
-
Project management involves the management of key resources which comprises of both human and other types of resources such as financial, infrastructure, equipment and other organisational assets. As...
-
What is the carryover amount? (the one that is marked as an incorrect answer) Haneen has taxable income of $120,000 without consideration of capital gain or loss transactions. Haneen has a...
-
Solve each linear programming problem. Maximize z = 2x + y subject to x 0, y 0, x + y 6, x + y 1
-
What is the amount of total interest dollars earned on a $5,000 deposit earning 6% for 20 years?
-
Bond Yields Giles Co. wants to issue new 20-year bonds for some much-needed expansion projects. The company currently has 7 percent coupon bonds on the market that sell for $1,062, make semiannual...
-
Accrued Interest you purchase a bond with an invoice price of $1,090. The bond has a coupon rate of 8.6 percent, and there are five months to the next semiannual coupon date. What is the clean price...
-
Accrued Interest You purchase a bond with a coupon rate of 7.5 percent and a clean price of $865. If the next semiannual coupon payment is due in three months, what is the invoice price?
-
A project that is expected to generate annual after-tax cash flows of $2,200 for each of the next 20 years. The project's cost of capital is 8.5 percent and it has an IRR of 9.058 percent. What is...
-
Why are unpaid accruals a "temporary" source of cash? Please give some details and examples.
-
Gabbie has to decide between the following two choices: Option 1: Get $320 with probability 35.97%, and $84.15 with the complement probability. Option 2: Get $94.95 with 100% probability. Her utility...
Study smarter with the SolutionInn App