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.
C) Several of the characteristics of a high performing strategic leader.
Explanation:
Nishimatsu established several policies (e.g. open-door, eating with employees, etc.) to decentralize planning strategies.
Nishimatsu also had the habit of talking with flight attendants and other low level employees as a way of being well informed about the airline's operations.
He even decided to take a wage cut when the airline was in financial trouble, which is extremely uncommon for a CEO.
Nishimatsu's behavior and traits made the employees have a very positive opinion of him, and they felt he was approachable and a true leader.
The reciprocals of one another is the term that describes the relationship between the flow rate and the capacity of each labor resource that works in a process.
<h3>What is a flow rate in production?</h3>
Its means the amount of flow units such as a customers, money, goods going through the business process per unit time.
Hence, the flow rate and capacity of each labor resource are reciprocal because they work together in a process unit.
<h2>The following are the reasons for how a country could have a deficit on its primary income but a current account surplus:</h2>
The identified and associated sources of primary income would be different than the sources of financial activities that reflect their collection in the current account.
The expenses on developmental activities could be drawn from the primary account rather than drawing them directly from the current account.
There could be diversions of funds to manage the accounts in order to earn interest on them.
