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erastovalidia [21]
2 years ago
5

Even if it is making economic losses, a perfectly competitive firm should keep operating in the short run so long as the price i

s:__________
Business
1 answer:
Bogdan [553]2 years ago
5 0

Even if it is making economic losses, a perfectly competitive firm should keep operating in short run so long as price is higher than average variable cost. A company operating in  perfect competition has no control over product's price. A company that stops producing, or closes down temporarily, will incur losses proportional to the fixed costs.

Because the firm's losses will be smaller in that scenario than the fixed costs, it will be prudent to continue functioning in near term when firm's total income surpasses firm's entire fixed expenses. Losses result when the market's price drops below average overall cost.

To learn more cost, click here

brainly.com/question/15135554

#SPJ4

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Age, gender, and race are examples of _______information
Dimas [21]

Answer:

I think it's personal info? It's also stuff you shouldn't give out online

4 0
3 years ago
Read 2 more answers
Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic pric
LenKa [72]

Answer:

Export

True

False

True

Explanation:

Free trade is a form of trade policy where there are no restrictions to imports or exports of goods and services.

The price of meekers is $30 in Meekertown and $40 In the world. Because meeker's are cheaper in Meekertown, it means that Meekertown is efficient in the production of meekers. As a result, they would export meekers to the rest of the world. It would be cost efficient for the rest of the world to import from Meekertown.

Consumers in Meekertown are worse of because of the trade because the price of Meekers would rise.

Producers are better off because they would earn more profits from the sale of Meekers at the world price.

Free trade increases total surplus because of efficient production. If a country is inefficient in production, it would import . This would increase consumer surplus and if it is efficient in production, it would export increasing producer surplus.

I hope my answer helps you

7 0
4 years ago
J & B Corp. is investing in a major capital budgeting project that will require the expenditure of $20 million. The money wi
DaniilM [7]

Answer:

a) WACC = 12.20%

Explanation:

Weighted average cost of capital is computed by allocating weights to different capitals.

Cost of bonds = Cost of debt = 5%

Cost of preferred stock = 9%

Cost of equity = 16%

As it is new issued and not from retained earnings.

With weights cost will be as follows

Bonds = 5% X $5/$20 = 1.25%

Preference share = 9% X $3/$20 = 1.35%

Equity = 16% X $12/$20 = 9.6%

WACC = 1.25 + 1.35 + 9.6 = 12.20%

7 0
4 years ago
Read 2 more answers
The common stock of CTI has an expected return of 14.48 percent. The return on the market is 11.6 percent and the risk-free rate
Bezzdna [24]

Answer:

1.35

Explanation:

Systemic risk is measured by beta. The higher beta is, the higher the systemic risk and the higher the compensation demanded for by investors

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

14.48 = 3.42 + b(11.6 - 3.42)

14.48 = 3.42 + b8.18

14.48 - 3.42 = 8.18b

11.06/8.18 = 1.35

5 0
3 years ago
The cost of land includes all of the following except:___.
lana [24]

Answer:

The answer is D.

Explanation:

The correct option is D. -The cost of fencing and lighting is not part of the cost of land. Why? - Because this is the cost to improve land.

Option A is wrong. Cost of levelling and grading is part of the cost of land

Option C is wrong. Purchase price is the main cost in the determining the cost of land

Option D is also wrong

6 0
3 years ago
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