A firm determines that the marginal cost of producing an additional unit of a good would be greater than the marginal benefit of doing so. Based on this information, what is the MOST rational decision for the firm to make?
Group of answer choices
increase production of the good
maintain its current production level
significantly expand its labor force
raise wages for its current workers
Answers: 1
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Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?
Answers: 1
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A firm determines that the marginal cost of producing an additional unit of a good would be greater...
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