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wariber [46]
2 years ago
12

The profit-maximizing rule leaves room for cases where it is both possible and reasonable for a firm to operate at a loss over t

he long run.
Business
1 answer:
Vinil7 [7]2 years ago
6 0

It is a false statement that profit-maximizing rule leaves room for cases where it is both possible and reasonable for a firm to operate at a loss over the long run.

<h3>What is a profit-maximizing rule?</h3>

The rule of profit maximization says that MC = MR where the MC means marginal costs and MR means marginal revenue.

As all costs are variable in the long run, then, a firm must always set its profit to zero by ceasing operation.

Therefore, It is false that profit-maximizing rule leaves room for those cases.

Read more about profit-maximizing rule

<em>brainly.com/question/16737525</em>

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The following standard costs pertain to a component part manufactured by Bor Co.:
larisa [96]

Answer:

Relevant cost= $30

Explanation:

Giving the following information:

Direct materials $4

Direct labor 10

Factory overhead 40

Standard cost per unit $54

Fixed cost is 60% of applied factory overhead, and is not affected by any make or buy decision.

<u>The relevant cost in a "make or buy" decision is the cost that can be avoided. Therefore, the fixed manufacturing cost is not relevant.</u>

<u></u>

Relevant overhead= 40*0.4= $16

Relevant cost= 4 + 10 + 16

Relevant cost= $30

3 0
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Ruth Lewis is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market int
bearhunter [10]

Answer:

Bond Price = $580.2640476 rounded off to $580.26

Explanation:

A zero coupon bond is a kind of bond that does not pay interest to the bond holder like other bonds. Instead it is offered at a discount price and pays the par value at maturity. The discount price is calculated using a certain rate which can also be called the implied interest rate on this zero coupon bond. The formula to calculate the price of the zero coupon bond is,

Bond Price = Par Value / (1 + r)^t

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Bond Price = 1000 / (1+0.115)^5

Bond Price = $580.2640476 rounded off to $580.26

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3 years ago
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the answer is true

Explanation:

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