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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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Jubilee, Inc., owns 30 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory cos
kumpel [21]

Answer:

the gross profit reported is $1,518

Explanation:

The computation of the amount of gross profit that reported is shown below:

But before that the gross profit percentage is

= (Sales - cost of goods sold) ÷ (sales)

= ($138,000 - $110,400) ÷ ($138,000)

= 20%

Now the gross profit is

= $25,300 × 20% × 30%

= $1,518

Hence, the gross profit reported is $1,518

8 0
2 years ago
Ayayai Corporation has outstanding 400,000 shares of $10 par value common stock. The corporation declares a 100% stock dividend
maxonik [38]

Answer:

Explanation:

The journal entries are shown below:

On Declaration date

Retained Earnings A/c Dr $4,000,000         (400,000 shares × $10)

        To Common Stock Dividend Distributable A/c $4,000,000        

(Being dividend is declared)

On distribution date:

Common Stock Dividend Distributable A/c Dr $4,000,000    

           To Common Stock A/c $4,000,000    

(Being the dividend is distributed)

8 0
3 years ago
A young professional wishes to have $730000 in her retirement account. She invests $900 monthly in the account which earns 11.5%
Vikki [24]

Based on the amount that she invests monthly, the interest rate, and the targeted retirement amount, the number of payments would be 42 payments.

<h3>How many payments should the young professional make?</h3>

The number of payments will be the same as the number of months/ periods because that is the frequency of payment.

The number of payments can therefore be found by the NPER formula on a Spreadsheet:

Rate = 11.5%

Pmt = -900

PV = Empty

FV = 730,000

Number of payments is:

= 41.76

= 42 payments.

Find out more on number of periods of payments at brainly.com/question/6819835.

5 0
2 years ago
Suppose the owners of Lopes and HomeMax meet for a friendly game of golf one afternoon and happen to discuss a strategy to optim
Amiraneli [1.4K]

Answer:

c. $2.0 million for Lopes and by $2.5 million for HomeMax.

Explanation:

For the problem above, the two organizations agreed to work on a particular project because they believed that they will benefit from the outcome of the project. Based on the available information provided in the question, the profit that Lopes will make yearly will increase by $2.0 million while that of HomeMax will increase by $2.5 million.

3 0
3 years ago
To make a decision resulting in good corporate citizenship, a business should evaluate the decision based on:
Sergio039 [100]

Answer:

All of them

Explanation:

When making decisions, a business should evaluate:

  • Legal implications of each decision : do our decisions comply with all applicable laws and regulation?
  • Public relations impact : how will the public feel about our decision?
  • Safety risks for consumers and employees: does it affect the safety and well being of our employees and customers?
  • Financial implications: does our decision benefit our business?
7 0
3 years ago
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