Acme Manufacturing is producing $4,020,000 worth of goods this year and expects to sell its entire production. It also is planning to purchase $1,500,000 in new equipment during the year. At the beginning of the year, the company has $500,000 in inventory in its warehouse. Find actual investment and planned investment if: Instructions:  Enter your responses as whole numbers.     Actual investment Planned investment a. Acme actually sells $3,850,000 worth of goods. $  $  b. Acme actually sells $4,000,000 worth of goods. $  $  c. Acme actually sells $4,200,000 worth of goods. $  $

Question

Acme Manufacturing is producing $4,020,000 worth of goods this year and expects to sell its entire production. It also is planning to purchase $1,500,000 in new equipment during the year. At the beginning of the year, the company has $500,000 in inventory in its warehouse. Find actual investment and planned investment if:

Instructions:  Enter your responses as whole numbers.
 

  Actual investment Planned investment
a. Acme actually sells $3,850,000 worth of goods.
b. Acme actually sells $4,000,000 worth of goods.
c. Acme actually sells $4,200,000 worth of goods.


Assuming that Acme’s situation is similar to that of other firms, in which of these three cases is output equal to short-run equilibrium output?

  • Case b
  • Case c
  • Case a
  • None

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