Suppose Cindy's Glove Factory operates in a perfectly competitive market and is producing its profit-maximizing level...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Suppose Cindy's Glove Factory operates in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose further that at this level of production its average total cost of producing gloves is $16, average variable cost is $14, and marginal cost is $18. Cindy should Select one: OA. maintain her current level of production since she is minimizing her losses. OB. decrease production since it will increase her economic profit. OC. increase production since it will increase her economic profit. OD. shut down immediately. OE. maintain her current level of production since she is earning a positive economic profit. Suppose Cindy's Glove Factory operates in a perfectly competitive market and is producing its profit-maximizing level of output. Suppose further that at this level of production its average total cost of producing gloves is $16, average variable cost is $14, and marginal cost is $18. Cindy should Select one: OA. maintain her current level of production since she is minimizing her losses. OB. decrease production since it will increase her economic profit. OC. increase production since it will increase her economic profit. OD. shut down immediately. OE. maintain her current level of production since she is earning a positive economic profit.
Expert Answer:
Related Book For
Auditing a business risk appraoch
ISBN: 978-0324375589
6th Edition
Authors: larry e. rittenberg, bradley j. schwieger, karla m. johnston
Posted Date:
Students also viewed these economics questions
-
Reporting requirements for contingent liabilities under IFRS differ somewhat from those under U.S. GAAP. Required: For each of the following, access the online version of the indicated financial...
-
IFRS for SMEs has been referred to as IFRS lite. One of the differences between full IFRS and IFRS for SMEs is that full IFRS allows for judgment in making choices about proper accounting, whereas...
-
Both U.S. GAAP and IFRS require the immediate recognition in net income of unrealized gains and losses on derivatives hedging recognized assets and liabilities treated as lair value hedges. Both U.S....
-
Consider four advertising campaigns where for each one it is cancelled before launch with probability 0.10, it is launched but canceled early with probability 0.18, it is launched and runs its...
-
A deck is thoroughly shuffled, and 5 cards are chosen, without replacement. What is the probability that the selection of 5 cards contains at least one card from each of the 4 suits?
-
What are the three major categories of barriers to ICT adoption in developing countries?
-
The absolute entropy for all crystalline substances at absolute zero temperature is (a) Zero (b) Negative (c) More than zero (d) None of these.
-
Joshua Company discovered the following errors made in January 2014. 1. A payment of Salaries and Wages Expense of $700 was debited to Equipment and credited to Cash, both for $700. 2. A collection...
-
Lance-Hefner Specialty Shoppes decided to use the dollar-value LIFO retail method to value its inventory. Accounting records provide the following information: Merchandise inventory, January 1, 2024...
-
You are a CPA student working in the accounting department of Reynolds Liquor Distributors Ltd. (RLDL) for the year ended December 31, 2019. Your role requires you to prepare and analyze the annual...
-
Write a C++ program to create a class Matrix and define following operations on the matrix objects: 1. Operation to perform addition of two Matrix objects 2. Operation to perform subtraction of two...
-
Find Etotal @ point P O 8 = +4nC 6cm O (Ans: ~80,000 N/C) q = = -4nC
-
Consider a two-dimensional solenoidal velocity field u in the plane (e, e). Assume that u = e at (1,1). a) For the following u component, find v: u = yx b) For the following v component, find u: v=...
-
Learning Goal: To learn how to change units of physical quantities. Quantities with physical dimensions like length or time must be measured with respect to a unit, a standard for quantities with...
-
1). Write the Resultant (R) in vector form (i.e. using i, j, k) 2). Calculate the magnitude of R and 3). its directional angle with respect to the positive x- axis (0) Show all work! X 4 tons 30 3...
-
3) The spontaneous emission from a GaAs semiconductor laser can be approximated by the graph shown below. The length of the wafer is 680 m, the index of refraction is 3.6, the facet reflectivity is...
-
A volatile organic carbon (VOC) in a water stream is to be stripped out using an air stream in a countercurrent staged stripper. Inlet air is pure, and flowrate is G = 500 lb/hr. Inlet liquid stream...
-
Draw a Feynman diagram for the reaction n + v p + .
-
How does an auditor determine the fair value of goodwill if: The reporting entity is the total company and the company is publicly traded. The reporting entity is the total company and the company...
-
The following are some tests of transaction procedures frequently performed in the acquisition and payment cycle. Each is to be done on a sample basis. Required a. State whether each procedure is...
-
You are designing a PPS sample to determine how many accounts receivable confirmations to send. There are 2,000 customer accounts with a total book value of $5,643,200.You estimate the maximum...
-
Dunkirk Consulting wishes to predict the amount of overhead expense that will be incurred by a consulting contract, to develop more accurate bids for future con- tracts. Dunkirk has the following...
-
Block Commodities has gathered the following information concerning rock salt deliveries to its clients, which it believes are highly seasonal: a. Suppose Block Commodities calculated a set of...
-
The service center at a large automobile dealership is trying to boost revenue by pro- viding no-appointment-necessary oil changes to any type of vehicle that stops by the service center. To quickly...
Study smarter with the SolutionInn App