When the firms is producing at the minimum average total cost, the amount of profit margin that they get tend to be high. This means that they can fulfill their target profit even by producing less amount of product.

Even when the demand in the market is decreased, Such firms will most likely accumulated enough profit to survive for a long period of time before they go bankrupt. This is why the firms is very unlikely to exist the industry in a short run.

7 0

3 years ago

University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developi

expeople1 [14]

Answer:

First calculate total machine hours

1500 + 1500 + 4500 = 7500 total machine hours

personnel = 1500/7500 x 4,800

printing = 1500/7500 x 4,800

developing = 4500/7500 x 4,800

for personnel:

500 printing + 3,500 developing = 4,000

For Departments:

printing = 500/4,000 x 15,760

developing = 3,500/4,000x 15,760

6 0

3 years ago