Answer:
D. Should Shut Down
Explanation:
A perfect competition firm is at profit maximising equilibrium where : Marginal Revenue [Price] = Marginal Cost .
If MR > MC : Firm's additional production is profitable, it tends to increase production. If MR < MC : Firm's additional production is loss making, it tends to decrease production.
However, If firm's Price i.e MR < Average Variable Cost : The firm's per unit price is even unable to cover it's per unit average variable cost. This situation is referred to as 'Shut Down' point & firm should close down its production in the case.
Given : MR = P = 3 ; MC = 4 ; AVC = 3.5 . The firm's price P (3) is not only lesser by its Marginal Cost MC (4), to decrease production ; but also lesser than its Average Variable Cost AVC (3.5) . So, the firm should shut down.
The correct answer is True. When ownership of the items passes to the customer, revenue is realised. In addition to the requirements for determining when control transfers, a reporting entity must also satisfy certain additional requirements for a customer to have achieved control in a bill-and-hold arrangement.
A bill and hold sales arrangement allows for payment in advance of the item's delivery. This is a sales agreement when a product seller invoices a consumer up front but doesn't actually ship the thing until later.
In a bill and hold transaction, the vendor does not deliver the purchased goods to the customer, but the associated income is still recorded. Under this structure, revenue cannot be recognised until a number of severe requirements have been satisfied. The possibility of falsely recognising revenue too early exists otherwise.
To learn more on bill and hold arrangement
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Answer:
franchise
Explanation:
The right to sell a good or service within an exclusive market is a _____.
franchise
market power
license
patent
Answer:
10.29%
Explanation:
Rule of 72 can be defined as a metric used to determine the time it will take to double an investment based on its growth rate.
To find the interest rate Kari must receive for her investment to double in 7 years, we would use the Rule of 72;
Rule of 72 = 72/7
Rule of 72 = 10.29%
Therefore, Kari must receive an interest rate of 10.29% for her investment to double in 7 years.
<u>Answer:</u> Option 1 and Option 5
<u>Explanation:</u>
In mixed economies under the government regulation most of the production is done by private ownership. There is very little government intervention. The main aim of the government intervention is to make sure that the private business activities comply with the law of the country.
Another result of government regulation is to control the externalities created by these business structures. Government ensures there is no externality which affects the market as well as the people. Due to these regulations there is no advantages for producer or government. Also the markets cannot be controlled with these regulations in mixed market economy.
