Answer:
A perfectly competitive firm will minimize its losses by shutting down when: P < TFC at the profit-maximizing level of output. P < MC at the profit-maximizing level of output.
Explanation:
A firm will choose to implement a production shutdown when the revenue received from the sale of the goods or services produced cannot cover the variable costs of production. In this situation, a firm will lose more money when it produces goods than if it does not produce goods at all. Producing a lower output would only add to the financial losses, so a complete shutdown is required. If a firm decreased production it would still acquire variable costs not covered by revenue as well as fixed costs (costs inevitably incurred). By stopping production the firm only loses the fixed costs.
Answer
The answer and procedures of the exercise are attached in a the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer: The sale would be completed according to the rules for Intermediary without Appointments
Explanation:
Intermediary without appointments takes place when an agent sells his or her own listing but in this scenario, the agent cannot negotiate or give advice to either party.
If Delia decides to purchase a home that is listed by XYZ Realty, then this sale would be completed according to the rules for intermediary without appointments. In such case, the agent can't give an opinion or negotiate on either parties behalf.
Answer: $23,661
Explanation:
The term 1/10, n/eom means that a discount of 1% is applicable on sold goods if the payment is made within 10 days from the purchase of the good. If not then the buyer must pay the full figure by End of Month.
The customer paid within the discount period and so claimed the deposit. The amount that will be refunded to them is the value of the good less the discount price.
= 23,900 * ( 1 - 1%)
= 23,900 * 99%
= $23,661
Answer:
Big Lake Bob
Production Possibilities Schedule:
Fishing Lures Duck Decoys
100 0
90 5
80 10
70 15
60 20
50 25
40 30
30 35
20 40
10 45
0 50
Explanation:
Number of fishing lures carved in a week = 50
Number of duck decoys carved in a week = 25
This means that for every 5 duck decoys Big Lake Bob carves, he gives up 10 fishing lures.
Big Lake Bob's production possibilities schedule
Fishing Lures Duck Decoys
100 0
90 5
80 10
70 15
60 20
50 25
40 30
30 35
20 40
10 45
0 50
b) Big Lake Bob's production possibilities Schedule is a table of numbers that illustrates the production possibilities of Bob's economy, with the alternative combinations of two goods that can be produced with limited resources (labor hours, capital, and materials, etc.) and technology.
