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g100num [7]
3 years ago
7

If a competitive firm cannot earn a profit at any level of output during a given shortminusrun ​period, then which of the follow

ing is​ FALSE?
A. It will shut down in the short run and wait until the price increases sufficiently.
B. It will exit the industry in the long run.
C. It will minimize its loss by decreasing output so that price exceeds marginal cost.
D. It will operate at a loss in the short run
Business
1 answer:
Natasha_Volkova [10]3 years ago
7 0

Answer: Option (C) is correct.

Explanation:

In a competitive market conditions, there are large number of buyers and sellers. All the firms in this market condition are selling identical products or we can say that all the goods are perfect substitutes.

Suppose if the firms earning negative economic profit then they continue to operate until the price of their goods is greater than the average variable cost and they shut down their production if the price of their goods is lower than the average variable cost.

A firm can experience normal profit, loss or supernormal in the short run.

But competitive firms cannot decreases their output to minimizes their losses.

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Match the legislation with the correct description.
jeka94
Equal pay act is obviously C
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3 years ago
One of the benefits of a savings account is that it allows your money to grow but there is a high risk associated with it.
MrRa [10]

Answer:

There is low interest rate. There is minimum balance requirement problem. There is federal withdrawal limit.

Explanation:

4 0
2 years ago
Sara works at a printing company. She and her colleagues have to stagger
dolphi86 [110]

Answer: D. Why the customer needs 5,000 extra flyers

Explanation:

The important factors that Sara will consider to know whether her company can accommodate the request are:

• Whether her company has enough paper on hand

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• Whether there is enough time to print the additional flyers by tomorrow.

These factors above are important as they'll determine if she can accept the request or not. For example, in a situation where there's no enough paper, then the request should not be accepted.

The least important factor for Sara to consider will be "Why the customer needs 5,000 extra flyers". This is not of concern to Sara and shouldn't bother her.

5 0
2 years ago
Read 2 more answers
Little LampLighter Inc has a book value of $10 million in debt; its bonds are trading at $900 and there are 11,000 outstanding.
kumpel [21]

Based on the amount of debt and equity that Little LampLighter has, the weighted average rate of return would be 12.3%.

<h3>What is the weighted average rate of return?</h3>

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The weighted average return is:

= (10 / 35 x 8%) + (25 / 35 x 14%)

= 2.286% + 10%

= 12.3%

Find out more on weighted average rate of return at brainly.com/question/17284158.

#SPJ12

7 0
2 years ago
A company purchased land for $90,000 cash. real estate brokers' commission was $5,000 and $7,000 was spent for demolishing an ol
Fed [463]

Based in the historical cost principle, the total cost of the land would be the summation of all cost, either direct or indirect.

Therefore it would be:

Cost of Land = $90,000 cash + $5,000 commission + $7,000 demolishing

Cost of Land = $102,000

 

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3 0
3 years ago
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