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lutik1710 [3]
3 years ago
11

Kate's 24-Hour Breakfast Diner menu offers one item, a $5.00 breakfast special. Kate's costs for servers, cooks, electricity, fo

od, etc. average out to $3.95 per meal. Her costs for rent, insurance cleaning supplies and business license average out to $1.25 per meal. Since the market is highly competitive, Kate should:
a. keep the business open in the short-run, and plan to expand the business in the long-run
b. raise her prices above the perfectly competitive level set by the market
c. keep the business open in the short-run, but plan to go out of business in the long-run
d. lay-off her staff break her lease, and close the business down immediately
Business
1 answer:
REY [17]3 years ago
6 0

Answer:

The correct answer is option c.

Explanation:

The price of Kate's breakfast special is $5.

The average variable cost is $3.95.

The average fixed cost is $1.25.

The average total cost

= $3.95 + $1.25

= $5.20

The price is not covering the average total cost but it is covering the average variable cost. The firm can continue operating in the short run but stop production in the long run.

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Franco and Giada are trying to calculate their gross income. Which of the following items should they exclude from their gross i
Helga [31]

Answer:

1 and 2

Explanation:

Gross profit is earning a business makes from its normal operation before considering operating expenses. It is calculated by subtracting direct costs from the revenues. Direct costs are the expenses incurred in acquiring the goods and services sold to customers. Revenue from normal business operations is the income from the sale of goods and services, and other business-related activities.

For Franco and Giada, they should not include items 1 and 2 in gross profits.

  • Item 1 is money inherited. It is income but not from the business operations.
  • Item 2 is a loan a bank loan. Loans are not considered in the income statement but are featured in the balance sheet.

Items 3 and 4 will be featured in the gross profit calculation. Item 3 is an income from a sale, while item 4 is a miscellaneous income from a loan issued out.

3 0
3 years ago
Suppose the U.S. Treasury offers to sell you a bond for $747.25. No payments will be made until the bond matures 5 years from no
8090 [49]

Answer:

r = 6.00%

Explanation:

given data:

bond price = $747.25

V = \frac{P}{(1+r)^n}

747.25 = \frac{1000}{(1+r)^5}

(1+r)^5= \frac{1000}{747.25}

1.33824  =(1+r)^5

taking log on both side

5 ln (1+r)= ln 1.33824

ln (1+r)= \frac{0.291355477}{5}

ln (1+r) = .05827

1+r =e^{0.05827}

1+r =1.06

r=0.06

r = 6.00%

5 0
4 years ago
Ceteris paribus, for the owner of a sawmill, lumber and the sawdust that go into particle board are
Katyanochek1 [597]
<span>Ceteris paribus, for the owner of a sawmill, lumber and the sawdust that go into particle board are </span><span>complements in production; by-products. C</span>eteris Paribus<span> is a Latin phrase meaning "all other things remaining equal".  It is commonly used in economics.  </span>
6 0
3 years ago
A quality characteristic has a specification (in cm) of 0.40 ± 0.03. If the value of the quality characteristic exceeds 0.40 by
DanielleElmas [232]

Answer:

option (C) L(x) = 200,000(x - 0.40)²  

Explanation:

Given:

quality characteristic = 0.40

Tolerance = 0.03

Repair cost = $180

Now,

Taguchi loss function is given as:

Loss (in $) = Constant × ( Quality characteristic - Target value )²

For quality characteristic of 'x' target value 't'

and constant A

L(x) = A × ( x - t)²

substituting the given values, we get

$180 = A × (0.03)²                 [x - t = tolerance]

or

$180 = A × 0.0009

or

A = 200,000

Hence,

Taguchi loss function

L(x) = 200,000(x - 0.40)²  

Hence,

the correct answer is option (C) L(x) = 200,000(x - 0.40)²  

4 0
3 years ago
The gross domestic product (GDP) of the United States is defined as the all in a given period of time. Based on this definition,
masha68 [24]

Answer:

PART-1) The gross domestic product (GDP) of the United States is defined as the market value of all final goods and services produced if within the United States if in a given period of time

PART-2)

1) Excluded. Roadway Motors is a U.S. company, however as it produces the convertible in Germany, the output will be part of the GDP of Germany, not the GDP of the United States

2) Excluded. Since the accountant has provided her services during 2018, the value of those services will be included in 2018 GDP, not in the year 2017 GDP

3) Included. The Zippycar example is straightforward and should clearly count as something produced in the United States in 2015. The gross domestic product (GDP) of the United States refers to the market value of all the final goods and services produced within the United States in a given period of time

4) Included. Although Fastlane is a Japanese company, the sedan is produced within the United States and should be included in the GDP of the United States

5) Excluded. The gross domestic product (GDP) of the United States refers to the market value of all the final goods and services produced within the United States in a given period of time, such as a year or quarter.

8 0
3 years ago
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