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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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Agri-Cor sells farm equipment throughout the euro zone. The company has noticed that some customers travel to countries where eq
sergejj [24]

Answer:

These statements are correct:

  • It makes it easier to compare prices across Europe - the Euro is the common curriency across 19 countries, but prices in those countries are far from being the same. For example, Germany is a lot more expensive than Greece (although a lot wealthier too), and Greek people can easily find out that the same product in Germany costs more euros than in Greece.
  • It makes Europe an optimal currency area - in the Eurozone, economic efficiency is now higher because resources can be allocated across different countries thanks to the fact that prices can be compared in the region.

3 0
3 years ago
Check My Work Dressed to a Tee received a promissory note of $8,000 for 10 months at 6% simple interest from one of its customer
nikklg [1K]

Answer:

$8,120

Explanation:

<em>To calculate the proceeds, the gross proceed  less the discount charged by the bank. The gross proceed is the total amount that would have been received should the note is held to maturity.</em>

Gross proceed= P + (P×R×T)

P- 8,000 R- 6%, T- 10/12

Gross proceed = (8,000 + 8,000× 6%× 10/12)

                         = $8,400

Discount charges = Gross proceed × discount rate × time to maturity

Time to maturity = 10 - 5 = 5 months

Discount rate - 8%, Time- 5/12

Discount charges =  8400× 5/12× 8% = $280

Proceeds to be received = $8,400 - $280

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5 0
4 years ago
One strength of the team leadership model is ______. a. its complexity b. its application to real-life organizations c. changes
nadezda [96]

Answer:

B. its application to real-life organizations

Explanation:

The answer to this is most likely B because the strength of the team leadership model is application to real-life organizations.

6 0
3 years ago
If notorious firm behavior (i.e., defrauding a buyer of high-priced experience goods by delivering low quality) becomes known th
Mrrafil [7]

Answer:

Customers will less likely agree to pay high price for an experience good

Explanation:

Once a firms reputation is ruined or tarnished, a great number of customers will naturally lose trust as regards products from that firm. Most customer would not want to gamble with their money even with the slight increase in interests rates, it is expected that a firm should always deliver quality product on a consistent basis. Inconsistency in product quality will lead to a reduction in customer trust and overtime, customer base in general.

8 0
3 years ago
@John_ES @BumbleBree . . Which of the following loans will typically have the highest interest rate?. . A.Mortgage. B.Car loan.
Sophie [7]
The correct answer among the choices listed is option D. A credit card most likely have the highest interest rate among the others because it is the most convenient and it has a short term for payments.  
7 0
3 years ago
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