Afirm sells a product in a purely competitive market. the marginal cost of the product at the current output level of 800 units is $3.50. the minimum possible average variable cost is $3. the market price of the product is $4. to maximize profits, the firm should
a. shut down if the minimum possible average cost is $5.25
b. shut down if the minimum possible average variable cost is $4.75
c. increase output if the minimum possible average variable cost is $5.25
d. decrease output if the minimum possible average variable cost is $4.75

1. gar principles or "the principles"are intended to do what?

Zeta corporation is a manufacturer of sports caps, which require soft fabric. the standards for each cap allow 2.00 yards of soft fabric, at a cost of $2.00 per yard. during the month of january, the company purchased 25,000 yards of soft fabric at $2.10 per yard, to produce 12,000 caps. what is zeta corporation's materials price variance for the month of january?

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?