The following does now now not belong withinside the list of the seven thoughts of supply chain control : c. Develop Outsourcing Strategy to Maximize Asset Utilization.
The required details for supply chain management in given paragraph
Supply chain control (SCM), additionally cited as indispensable chain control , is a precept wherein improved functionality of the participating company within side the chain is created through improving processes and cooperation with providers and buyers . In the hospitality enterprise and deliver organizations, for example, this will make sure that much less waste is produced thru greater accurate purchasing . Supply chain control is typically supported with software ( Enterprise aid planning ; SAP is first-rate regarded for this) that permits organizations to speak with every different and to system orders automatically. By making use of and enforcing deliver chain control, the so-called pendulum effect prevented or decreased to a minimum.
In the meals trade, that is supported on the checkout through translating the coins sign up transaction to the supplier, who is aware of the intake on the diverse shops with out plenty delay, so they can speedy fill up the stock.
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is the process through which managers ensure that employees' activities and outputs contribute to the organization's goals. T/F
This statement is true. Performance management is an ongoing process that involves setting objectives, measuring progress, providing feedback, and rewarding results. It is a way of monitoring and supporting employees’ progress and development.
It helps ensure that everyone in the organization is working towards the same goals by collecting, analyzing and/or reporting information regarding the performance of an individual, group, organization, system or component.. It's aim is to improve the performance of employees and help them in reaching their full potential. It is also a way of creating accountability and ensuring that employees are held accountable for their performance.
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Which of the following statements is most correct?
a) Regulations in the United States prohibit acquiring firms from using common stock to purchase another firm.
b) Regulations in the United States require acquiring firms to use common stock to purchase another firm.
c) Hostile mergers always create value for the acquiring firm.
d) A conglomerate merger is one where a firm combines with another firm in the same industry
e) None of the above
None of the above is the most correct statement. The correct answer should be Defensive mergers aim to reduce a company's susceptibility to an acquisition.
a scenario in which one business joins forces with another in an effort to prevent a third business from acquiring it: The takeover bid has compelled them into a defensive merger with their biggest rival.
Defensive acquisitions are a type of corporate finance strategy in which businesses buy other businesses and assets to "defend" themselves from market downturns or potential takeovers. The typical motivation for an acquisition, which is typically increased market share or revenue, contrasts with a defensive acquisition.
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FILL IN THE BLANK ________ teams have been found to have a positive effect on productivity and attitudes of control, yet no impact on job satisfaction or organizational commitment.
Project
Cross-functional
Work
Self-managed
Virtual
Self-managed teams have been found to have a positive effect on productivity and attitudes of control, yet no impact on job satisfaction or organizational commitment (Option 4).
What are self-managed teams?Self-managed teams are different organizational groups in which the individuals that form part of the institution are able to take decisions on their own, which has positive outcomes in terms of productivity and also the ability to handle different situations.
Therefore, with this data, we can see that self-managed teams are positive in the way that they can manage different situations and it increases productivity.
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1.Institutions that help to match one person's saving with another person's investment are collectively called theA.Federal Reserve system.B. banking system.C.monetary system.D.financial system.
Institutions that help to match one person's saving with another person's investment are collectively called the financial system.
What are the financial system's components and purposes?An economic structure known as a financial system allows for the transfer of assets and money between lenders, investors, and borrowers with the help of financial institutions. Its purpose is to effectively allocate economic resources in order to stimulate economic growth and produce a return on investment (ROI) for market players.
Why is the financial system crucial?A stable financial system is capable of effectively allocating resources, identifying and managing financial risks, preserving employment levels close to the natural rate of the economy, and preventing relative price movements of real or financial assets that could jeopardize monetary stability or employment levels.
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The income statement and selected balance sheet information for Calendars Incorporated for the year ended December 31 are presented below.
Income Statement
Sales Revenue $ 86,000
Expenses: Cost of Goods Sold 40,000
Depreciation Expense 16,800
Salaries and Wages Expense 10,800
Rent Expense 3,300
Insurance Expense 1,700
Interest Expense 1,600
Utilities Expense 1,400
Net Income $ 10,400Selected Balance Sheet Accounts
Ending Balances Beginning Balances
Inventory $ 445 $ 520
Accounts Receivable 2,200 1,820
Accounts Payable 1,280 1,460
Salaries and Wages Payable 530 290
Utilities Payable 120 0
Prepaid Rent 70 110
Prepaid Insurance 60 70Required:
Prepare the cash flows from operating activities section of the statement of cash flows using the indirect method. (Amounts to be deducted should be indicated by a minus sign.)
CALENDARS INCORPORATED
Statement of Cash Flows (Partial)
For the Year Ended December 31
Cash Flows from Operating Activities: Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Changes in Current Assets and Current Liabilities 0
$0
CALENDARS INCORPORATED Statement of Cash Flows (Partial) For the year ended December 31 Cash flow from operating activities.
What is statement cash flow?
Having a high degree of cash conversion flexibility, cash equivalents are short-term assets. They include, among other things, the balances in savings and money market accounts, short-term CDs, and short-term government securities (e.g., treasury bills). Short-term commercial paper is another illustration of an alternative to cash (negotiable notes receivable issued by other companies).
On the balance sheet, you can show cash and cash equivalents together or separately. Some companies combine cash with short-term investments in marketable stock instruments. Effective financial management invests any surplus in cash equivalents, leaving very little cash on hand in the actual world. The distinction between cash and cash equivalents tends to lose significance with the availability of highly liquid assets.
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arguments for the activist approach toward social responsibility of organizations include that it is management's responsibility to earn profits for owners, that potential conflicts of interest occur when managers must meet profit goals and simultaneously enhance social welfare, and that businesses lack the expertise to manage social problems.
Corporate social responsibility (CSR), also referred to as social responsibility in business, is the practice of individuals and organizations acting morally and conducting business while being mindful of social, cultural, economic, and environmental concerns.
Explanation:An organization's social obligations are those duties that the organization owes to society.
When a company participates in social activities, such as the Walk for Life, awards scholarships, hosts sporting events, and many others, it just raises public knowledge of the company; it does not give the company any new authority over the general populace or another company. Instead, it improved the quality of the participants' lives. Therefore, the notion that commercial involvement in social initiatives results in an overabundance of power cannot be used to discredit social organizations.
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The president of the United States promises that
the nation's economy will simultaneously produce more defense goods without any decreases in the production of other goods. Under which of the following conditions might such a promise be valid?
The following conditions might such a promise be valid If the US were producing inside its production possibilities curve.
PPF is the area on the graph that represents the level of production that cannot be achieved given the available resources. The curve represents the optimal level. Here are the assumptions involved: A firm economy wants to produce two products. It has limited resources.
Ownership is the state or fact of legal possession and control over the tangible or intangible property. Economic data measure the financial health or well-being of a country a particular region or an individual market. It is often presented in comparison with past measures. This data is used to create economic analyzes and enrich other categories of financial data.
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The curve has a positive slope because as prices of final goods and services rise, prices of inputs rise more slowly. A) short-run aggregate demand B) short-run aggregate supply C) long-run aggregate supply D) long-run aggregate demand
The curve has a positive slope because as prices of final goods and services rise, prices of inputs rise more slowly is short-run aggregate supply.
Why does the short-term aggregate supply curve have a positive slope?Given that certain nominal input prices are fixed and that more manufacturing processes get bottlenecked as output increases, the aggregate supply curve is upward sloping in the near run. Low levels of demand allow for output to be expanded without experiencing diminishing returns and an increase in the average price level.
Which curve for total supply has a positive slope?The upward-sloping aggregate supply curve, sometimes referred to as the short run aggregate supply curve, demonstrates the favorable short-term link between price level and real GDP.
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The manufacture of flat panel displays includes two basic steps:
(1) fabrication of the display, in which many pixels are fabricated on a glass substrate, and
(2) assembly of the display into a housing containing the driver chips. Suppose for the fabrication step there is an upper specification limit on the number of failed pixels per display.
Assume failed pixels exceeding the spec limit is the only failure mechanism in fabricating the display. Suppose the process performance index for fabrication is 0.8. In the assembly step, suppose there are upper and lower specification limits on the current drawn by the driver chips in an assembled unit. Assume exceeding the spec limits for current is the only failure mechanism in the assembly step. Suppose the assembly step has a process capability index of 1.4 and a process performance index of 0.9. What is the yield of manufacturing flat panel displays?
Display pixels driven by silicon thin film transistors are fabricated on plastic substrates for use in active matrix displays, such as flat panel displays.
What are specification limits?
The objectives that customers or market performance have set for a product or a process are known as customer specification restrictions, and they are typically based on input from the Voice of the Customer. In other words, it is the result that the metric that we use to measure should bring about.
Customers choose the upper and lower limits for product characteristics, which define the circumstances in which the product is useable. Assume that if the product exceeds these limits, the consumer will reject it. Specification restrictions are related to product design. As a result, during the product's design phase, impose these limitations.
a client's willingness to accept the specification's top bound.
The lowest specification restriction that a customer would accept.
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True or False: the three major activities in new-product development are to (1) generate new ideas, (2) screen and evaluate ideas, and (3) define and test product concept.
The given statement about major activities in new product development is False.
major activities in new product development are:
1. Identify potential product markets
2. Specify the market potential
3. expand the business possibility
Ideation, Feasibility, and Capability are the three stages that can generally be used to navigate the product development process.
Generally speaking, product development refers to all phases that go into creating a product, from concept or idea to market release and beyond. In other words, the complete path of a product is incorporated into product creation. There are numerous steps in this procedure, and every firm will follow a different course.
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Managing a project and leading a project are two different things. Project leadership is about coping with
A. Formulating plans and objectives.
B. Monitoring results against plans.
C. Change.
D. Taking corrective action when necessary.
E. Designing structures and procedures.
Project management and project leadership are two distinct activities. Project management involves managing change.
What distinguishes project management from project leadership?Organize tools to carry out tasks and control routines. To lead is to exert influence over others and to envision transformation.
What are the top three management priorities for the project's success?3 Essentials for Successful Project Management. Project managers need to be skilled in many different areas, but we'll focus on our top three: management, leadership, and communication.
Which two aspects of project management are the most important?Case Study On The Technical And Socio-Cultural Aspects Of Project Management. Project management is heavily dependent on both the technical and sociocultural factors, which are both highly important parts of the process.
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A commercial unit is a single whole for the purpose of sale, the division of which impairs its character or value on the market. T/F
It is true that a commercial unit is single whole for purpose of sales, division of which impairs its character or value on market.
What are sales?Sales are actions involving the exchange of products or the quantity of merchandise exchanged over a predetermined period of time. At the point of sale, the seller or provider of the goods or services completes a sale when a purchase, appropriation, requisition, or direct interaction with the consumer takes place. It is common for the seller to carry out the transaction rather than the buyer, and it may be completed before the loan is due. In common law countries, commercial regulations and the common law generally govern sales. Although there are considerable non-uniform variations, the majority of US jurisdictions have ratified Article 2 of the Uniform Commercial Code, which has led to a degree of uniformity in the rules governing the sale of goods.
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Teams and sport organizations must establish objectives before developing and measuring social media marketing strategies True False
True. Prior to creating and evaluating social media marketing strategies, teams and sports organizations must outline their objectives.
What are some of the duties performed by a sport marketer employed by social media?A sports marketer may have a variety of tasks on their plate at any given time, including coordinating ad copy and media buying, media creation, meetings with merchandising teams, developing budgets, creating a social media calendar, planning events and initiatives, and providing innovative writing assistance for press releases.
Why are social media platforms useful to sports teams?Sports fans can interact, respond, and feel more connected to the teams and athletes they love thanks to social media, which is a two-way interaction. Take a look at how sports fans are now utilizing social media: 41% of all sports enthusiasts in the world watch live games on digital media.
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it was discovered that a person becomes neurotic because he cannot tolerate the amount of frustration which society imposes on him in the service of its cultural ideals, and it was inferred from this that the abolition or reduction of those demands would result in a return to possibilities of happiness.
The Pleasure Principle and the Reality Principle-Freud contends that the only goal in life that everyone can agree on is to be happy.
What is citizens acoording to Frued ?Happiness can only be obtained in its purest form through the pleasure principle (living for the satisfaction of all needs, for pleasure).
Sigmund Freud published Civilization and Its Discontents in 1930, outlining his theory of civilization: civilization is a problem that makes us unhappy.
Freud believed that humans are aggressive creatures by nature, and that we enjoy expressing our aggression and hurting one another.
The whole sum of the achievements and regulations which distinguish our lives from our animal ancestors. It serves two purposes: it protects us from nature and it adjusts our mutual relationships.
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when machine-hours are used as an overhead cost-allocation base, the most likely cause of a favorable variable overhead spending variance is . question 18 options: the production scheduler efficiently scheduled jobs strengthened demand for the product a decline in the cost of energy excessive machine breakdowns
a decline in the cost of energy excessive ,machine breakdowns a decline in the cost of energy.
What is fixed overhead budget?The fixed overhead budget variance is also known as the fixed overhead spending variance. Fixed overhead costs are the indirect manufacturing costs that are not expected to change when the volume of activity changes.
What comes under fixed budget?A fixed (static) budget presents budgeted amounts at the expected capacity level. It is best used when the department's activities (e.g., sales) are stable. A deficiency with the static budget is the lack of flexibility to adjust to unexpected changes.
How is static budget calculated?To calculate a static budget variance, simply subtract the actual spend from the planned budget for each line item over the given time period. Divide by the original budget to calculate the percentage variance
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In the Classical Bathtub Model the leakage (withdrawal) represents income saved that is then borrowed by businesses and re-injected into the economy as ___.
The leakage (withdrawal) in the Classical bathtub model corresponds to revenue that has been saved, borrowed by enterprises, and then reinvested as investment.
What is the traditional method of calculating income? The leakage (withdrawal) in the traditional bathtub model corresponds to money saved, which businesses then borrow and reinvest as investment."Supply creates its own demand," according to Say's law.There will always be an equilibrium between the total supply and total demand across all markets.The connection between inputs and outputs is described by the production function.Prior to the Great Depression, the Classical Model was in vogue.According to this, the economy is relatively open and prices and salaries are able to fluctuate in response to changes in demand at any time.In other words, prices and incomes rise swiftly during prosperous times and fall freely during difficult times.To learn more about Classical Model refer
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the phillips curve forecast involves using as part of the y variable with unemployment and as parts of x variables
The Philips curve forecast involves using as part of the y variable with unemployment and as parts of x variables. This statement is true.
What is meant by Philips curve?The average association between wage behaviour and unemployment over the course of the business cycle was illustrated by Phillips' "curve." It displayed the rate of wage inflation that would occur if a specific unemployment rate maintained over an extended period of time. Phillips curve estimates were made quickly for the majority of industrialised economies.
The Phillips curve shows a consistent negative relationship between unemployment and inflation. According to William Phillips' theory, inflation follows economic expansion and should result in more jobs and lower unemployment.
= e h (u u N),h > 0. (1) Here, the inflation rate is, and the predicted inflation rate is e. Here, h is a constant positive coefficient and u is unemployment.
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In long-run equilibrium in a competitive market, firms are operating at a. the minimum of their average-total-cost curves. b. the intersection of marginal cost and marginal revenue. c. their efficient scale.
d. zero economic profit. e. all of the above.
In long-run equilibrium in a competitive market, firms are operating at: e. all of the above
What is competitive market?A competitive market is market where there are a huge number of sellers and buyers where no individual buyer or seller can affect the price of goods being sold. A competitive market can occasionally be called perfect competition. In a competitive market, no one leads the market and there isn't a difference in quality, price or amount between the rival companies and what they offer.
One of the most important things to learn about competitive markets is the fact that they are theoretical and not actual fact. There are markets that has one of the requirements and characteristics of competitive market, or perfect competition, but still nothing actually fits them all.
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one of the reasons for using home-country nationals is to help a multinational corporation (mnc) maintain financial control over the operation. t/f
False. One of the reasons for using home-country nationals is to help a multinational corporation (mnc) maintain financial control over the operation.
What is a multinational corporation?An organization is considered a global corporation if its operations span at least two nations. Some individuals would classify any business having an overseas branch as a multinational corporation. Some people might restrict the term to only include businesses with at least 25% of their revenue coming from sources outside of their own nation.
Direct investments may be made abroad by multinational corporations. Many are based in industrialized countries. Advocates claim that they produce technologically advanced goods and high-paying jobs in nations that wouldn't otherwise have access to them.
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Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic price of a meeker is $30. Suppose that the world price for a meeker is $40. Assume that Meekertown is too small to influence the world price for meekers once they enter the international market. If Meekertown allows free trade, then it will_______meekers. Given current economic conditions in Meekertown, complete the following table by indicating whether each of the statements is true or false. True or False: When a country is too small to affect the world price, allowing for free trade will always increase total surplus in that country, regardless of whether it imports or exports as a result of international trade.
The answer to the first part of the question about the meeker economy- which contains a fill-in-the-blank is - Export. And another part is - True.
Taking into account the demand for meekers in the made-up Meeker town economy. In the absence of foreign trade, a meeker costs $30 domestically. assuming meeker costs $40 in the real world.
Given that Meeker town is too small to have an impact on the global price of Meekers once they are sold abroad. Meeker town will export meekers if it permits free trade.
The claim that regardless of whether a country imports or exports as a result of international commerce,
enabling free trade will always enhance the total surplus in that country when that country is too tiny to have an impact on global prices is True
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Business writing should be purposeful, persuasive, economical, and
Pre-writing, drafting, and the final revising stage, which includes editing and proofreading, are the three steps that make up the Business writing process.
What are the three steps in the process of writing a business document?The business message is written in three steps: planning, writing, and finishing. Planning include assessing the situation, acquiring data, deciding on the most effective delivery method for your message, and arranging the data.
Choose the best answer for "What are the three steps in the business writing process?"The phases of business writing frequently cross over. - The planning, writing, and evaluating phases are the three components of successful business writing.
Question: Business writing should be purposeful, economical, and ____. audience oriented. What are the three phases of the writing process?
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The management of serpas corporation is considering the purchase of a machine that would cost $180,000, would last for 5 years, and would have no salvage value. the machine would reduce labor and other costs by $46,000 per year. the company requires a minimum pretax return of 13% on all investment projects. the net present value of the proposed project is closest to: a. $27,138 b. $50,000 c. -$18,218 d. -$33,565
The proposed project's net present value is closest to -$18,218.
What is salvage value?Salvage value is an asset's anticipated book value after depreciation, based on what a firm anticipates obtaining in exchange for the asset at the end of its useful life. As a result, an asset's projected salvage value is a key factor in determining a depreciation schedule.
Saving costs of $46000 per year can be considered as an annuity for 5 years.
The present value of an annuity of 1 for 13% is
(1-(1+0.13)-5)/0.13 = 3.517
Thus, the present value of an annuity
46000 - $46000 x 3.517 = $161782
The initial investment is $180,000.
Thus the net present value is
161782 - 180000 = -$18218
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supply chain systems manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner.
Supply chain execution system manage the flow of products through distribution centers and warehouses to ensure that products are delivered to the right locations in the most efficient manner.
What do you mean by Warehouse?A warehouse is a type of commercial building used extensively in the manufacturing and distribution sectors to store both finished items and raw materials as part of the supply chain.
Supply chain management is the control of flows. Any supply chain has five main flows: the flow of goods, the flow of money, the flow of information, the flow of value, and the flow of risk. The movement of items from a supplier to a client, as well as any customer returns or service requirements, are all included in the product flow.
Demand forecasting, often known as prediction, is a procedure used in supply chain management to make sure that products can be delivered and please customers. Striking a balance between having enough inventory to meet consumer demand without having an excess is the objective.
Therefore, Supply chain execution system is the correct answer.
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_____ costs are the costs associated with changing from one choice, such as a brand, retailer, or service provider, to another.a. Switchingb. Transferc. Conversiond. Shillinge. Infiltrating
Switching costs are the costs associated with changing from one choice, such as a brand, retailer, or service provider, to another. Thus the correct option is A.
What is a Retailer?A retailer is referred to as a channel of distribution that purcahse goods from wholesalers in small amounts and sells them to customers. he is a direct link with customers so able to understand the demands taste and preferences towards products.
The expenditures a customer incurs when switching brands or products are referred to as switching costs. Switching costs are substantial because they enable businesses to sustain sales while also increasing brand recognition.
By decreasing the likelihood that a consumer will move to an alternative product rather than continuing with your brand, higher switching costs naturally reduce defection.
Therefore, option A is appropriate.
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which of the following is true when comparing yield measures for money market instruments to yield measures for longer-term bond market yield measures? group of answer choices money market yield measures are derived from discount interest quotations, while bond market yield measures are derived from add-on interest. money market yield measures are based on simple interest, while bond market yield measures are based on compound interest. money market yield measures have a periodicity of one by design, while bond market yield measures have a periodicity that varies with coupon payment frequency.
The interest rate obtained from investing in assets with high liquidity and short maturities, such as negotiable certificates of deposit, U.S. Treasury bills, and municipal notes, is known as the money market yield.
What Is the Money Market Yield?The money market yield is derived by multiplying the holding period yield by a 360-day bank year divided by the number of days till maturity. It can also be calculated using a bank discount yield.Bond equivalent yield and CD-equivalent yield are closely related to the money market yield (BEY).Investors anticipate receiving a return on their investment from money market instruments, or the money market yield.The money market entails the buying and selling of substantial quantities of very short-term debt instruments, including overnight reserves or commercial paper.A person can make an investment in the money market by buying a money market mutual fund, purchasing a Treasury bill, or by opening a money market account at a bank.
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bug tracking softwareSystem developers use defect tracking software, sometimes called bug tracking software, to document and track program defects, code changes, and replacement code, called patches.
A thorough software program called a bug tracking software, often known as a defect tracker, maintains track of reported software bugs.
What exactly is a bug tracking program?Software used by quality assurance (QA) and software development teams to submit software bugs and issues is known as bug tracking software, sometimes known as issue tracking software. An effective bug tracking system is necessary for software development.
What is the price of bug tracking software?You may already be paying for issue tracking if you already have workflow, ALM, or project management software. Alternatives include a number of open-source and cost-free choices. Paid choices range in cost, but often cost $50 or less per month.
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The assessment center technique for selecting employees is ideal for small firms because such centers involve limited expense. T/F
Candidates are evaluated in assessment center to see if they are qualified for particular jobs, particularly management or military command. Techniques used to evaluate candidates'
personalities and aptitudes include group exercises, presentations, exams, and psychometric testing. Assessment center, which were developed during World War II to choose officers, are still widely employed in today's military recruitment. Examples include the British Army's War Office Selection Board and the Royal Navy's Admiralty Interview Board. [2] Except for a little amount of internal use by the CIA during intelligence gathering operations during World War 2, the OSS model of assessment center was essentially abandoned in the United States. Australians who were identified as participants and the British Civil Service Selection Board continued to utilize it for selection.
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the records of alberta inc. included the following information: cost of goods sold $1,800,000 beginning inventory 435,000 ending inventory 465,000 use the information above to answer the following question. what is the inventory turnover ratio? a. 4.14 times b. 2.00 times c. 3.87 times d. 4.00 times
Inventory turnover is a measure of how many times inventory is sold or used in a given time period, such as a year. Hence option A is correct
What is Inventory Turnover Ratio ?It is calculated to determine whether a company has an excessive inventory in comparison to its sales level.
The ideal inventory turnover ratio for most industries will be between 5 and 10, implying that the company will sell and restock inventory every one to two months.
The ideal ratio for industries with perishable goods, such as florists and grocers, will be higher to prevent inventory losses due to spoilage.
Inventory turnover is the amount of time that elapses between the day a company purchases an item and the day it is sold.
Inventory Turnover Ratio = COGS / Average Inventory
Where COGS = $1,800,000
Average Inventory = opening Inventory + Ending Inventory /2
= 435,000 + 465,000 / 2
= $ 450,000
Inventory Turnover Ratio = COGS / Average Inventory
= $ 1800,000 / 450000
= 4.14 times
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A 60-day, 11% note for $28,800, dated May 1, is received from a customer on account. The maturity value of the note is a. $29,328 b. $28,800 c. $31,968 d. 5528
Maturity value = Note value + Interest on that
Note value = $28,800
Interest= $28,800 x 11% x 60/360
=$28,800 x 11% x 1/6
=$528
Maturity value = Note value + Interest on that
=$28,800 + $528
=$29,328
Hence, the right option is a.) $29.328
The amount owed and due to be paid to the holder of a financial obligation as of the obligation's maturity date is its maturity value. The phrase typically refers to a loan's or bond's outstanding principal balance. In the event of a security, par value and maturity value are the same.
Maturity values are significant since they have an impact on your financial planning by showing just how much cash you will have on hand at a specific future period.
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If a firm in a perfectly competitive industry is confronted with an equilibrium price of $5.00, its marginal revenue
A. may be either greater or less than $5.00.
B. will also be $5.00.
C. will be less than $5.00.
D. will be greater than $5.00.
If a perfectly competitive industry firm is confronted with an equilibrium price of $5.00, its marginal revenue will also be $5.00.
In a perfectly competitive market, firms are price takers, meaning they have no control over the price of the product they are selling. In a PC perfectly competitive market, a firm's revenue from selling the final unit of a manufactured good is known as the marginal revenue (MR). When an extra or additional unit is sold, it increases the company's overall revenue or the total revenue (TR), the total amount collected by selling a fixed quantity of the manufactured good.
Therefore,
TR = Total sales revenue from selling a given quantity = P × Q
Now, by the definition, MR = differentiation of TR with respect to Q
So,
Differentiation of TR (where TR = P × Q) with respect to Q is equal to product price P.
In the question, It is given that a firm's product price at equilibrium in a PC industry = $5.00
Therefore,
MR of the firm = P = $5.00
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