Answer: B) the firm will shut down in the short run, but stay in the industry in the long run if it expects the product price to rise high enough soon.
Explanation:
If a purely competitive firm is currently facing a situation where the price of its product is lower than the average variable cost, but it believes that the market demand for its product will increase soon, then the firm will shut down in the short run, but stay in the industry in the long run if it expects the product price to rise high enough soon.
Answer:
15.4%
Explanation:
required initial investment $33,500
annual cash flows $7,400
useful life 15 years, no salvage value
depreciation expense per year = $33,500 / 15 = $2,233.33
simple rate of return = annual incremental net operating income / Initial investment
- annual incremental net operating income = $7,400 - $2,233.33 = $5,166.67
- initial investment = $33,500
simple rate of return = $5,166.67 / $33,500 = 15.4%
Answer:
O
D. It is when companies relocate facilities to countries where costs are lower which means relocating jobs.
Explanation:
Offshoring is when companies make foreign countries their company's base. In other words, we can say offshoring is the practice of placing one's company based in other countries. Like, when US-based companies are based in India, that means offshoring.
This professional practice is an example of structural unemployment in the US because it means relocation of the jobs, thereby resulting in employees moving to the "offshore" base.
Thus, the correct answer is option D.
Answer:
The interest revenue is $ 300+$315.62+$887.67+$4500= $ 6003.29
Explanation:
Note 1 : Interest Revenue = $ 30,000 * 4% *3/12= $ 300
Note 2 : Interest Revenue= $ 16,000 * 8 % *90/365= $ 315.62
Note 3: Interest Revenue= $ 18,000 * 10% *180/365= $ 887.67
Note 4: Interest Revenue= $ 150,000 * 12% *6/12= $ 4500