The Following Data Are Available for Three Products of the Classic

question 14

Short Answer

The following data are available for three products of the Classic Company: $\begin{array} { l r r r } & \text { A } & \text { B } & \text { C } \\\text { Beginning inventory } & \$ 5,000 & \$ 20,000 & \$ 15,000 \\\text { Purchases } & 45,000 & 65,000 & 62,000 \\\text { Goods available for sale } & 50,000 & 85,000 & 77,000 \\\text { Ending inventory } & 18,000 & 13,000 & 9,000 \\\text { Cost of goods sold } & 32,000 & 72,000 & 68,000\end{array}$ You discover the following errors:
a)Ending inventory for product A was overstated by $6,000.
b)Ending inventory for product B was understated by $5,000.
c)Beginning inventory for product C was overstated by $3,000.
Considering these errors, recalculate cost of goods sold for each product.

Grasp the concept of marginal revenue and its equality to the price in perfect competition.

Understand the role of marginal revenue in decision-making for firms in perfect competition.

Understand the relationship between price, average total cost, and profit maximization in a perfectly competitive market.

Identify the conditions under which a perfectly competitive firm should increase or decrease production to maximize profits.

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Definitions:

Periderm

A protective tissue in plants, making up the outer layer of the bark in woody plants.

Yolk Sac

An extra-embryonic membrane in early embryonic development that provides nutrition to the developing embryo.

Prostate Gland

A gland in males located below the bladder surrounding the urethra, secreting fluid that is a component of semen.

Spermatic Cord

A bundle of fibers and tissues passing through the abdominal wall and into the testes, involved in blood supply, waste removal, and sperm delivery.