Answer:
Consider the following calculations
Explanation:
TC=0.2Q2 - 5Q + 30,
MC=0.4Q - 5.
Equilibrium condition
MC=P
0.4Q - 5 = 6
0.4Q = 11
Q = 11/.4
=27.5
Profit = TR - TC
=27.5*6 - .2(27.5)2 -5(27.5)+30
=165 -756.25 -137.5 +30
= - 698.5
Firm is incurring loss
Firm will continue to produce as long as it is able to recover AVC
AVC =0.2Q -5
=0.2(27.5) -5
=5.5 -5
=0.5
Hence firm will continue to produce
Answer:
Variable cost
Explanation:
because sometimes companies set fixed price to other product
Answer:
D. international diversification
Explanation:
The Multinational corporations can reduce their risk by international diversification and reduced risk can increase debt capacity of MNC. The higher capacity to meet scheduled debt payment also reduces cost of capital.
The effect of international diversification on capital structure can be explained through
1. Co-insurance effect: Combining businesses with international firms provides reduction in operating risk and thereby increase debt capacity. This helps MNCs to include more debts in their capital structure.
2. Transaction cost theory. Internationalization is a way of internatilize intangible assets. Since intangible assets are not difficult to sale , international diversification helps MNCs to exploit their intangible assets. So MNCs with an eye of international diversification will try to develop these type of assets in their asset base.
3.Agency cost argument: MNCs will have high agency costs Diversification helps to reduce these agency costs International diversification creates larger markets and generates growth opportunities. Growth opportunities and debt ratios are inversely proportional .MNCs with higher growth opportunities will rely on equity rather than debt.
Answer:
C.
Explanation:
The law of demand states that when the price of a good or service increases, the quantity demanded decreases and when the price decreases the quantity demanded increases (other things constant).
Is not option A because it says changes in income and not changes in prices. Is not option B because it says the opposite that the law of demand states: when the muffins price is low, Melissa buys fewer than when the price is high. Is not option D because the law of demand is not directly related with substitute goods. It is option C because when the price is low ($0.25) Dave buys more donuts than when the price is high ($0.50)
In getting the gross profit, you need to add all the assets and less the expenses. See below:
Asset - Expenses = Profit
Below are the assets:
$ 23,000 cash on hand
$ 34,000 cash on bank
Therefore the total asset is $ 57,500
While the expense is $41,500
Solution: $57,500 - 41, 500 = $16,000
I hope it helps
