1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sever21 [200]
3 years ago
13

Suppose a price-taking firm produces 400 units at its optimal output level. At that output rate, marginal cost is $200, average

total cost is $240, and average variable cost is $170. The firm will be forced to go out of business in the short run if:​Select one:a. the market price is between $200 per unit and $240 per unit.b. the market price is between $170 per unit and $240 per unit.c. the market price falls below $170 per unit.d. the market price equals $240 per unit.e. the market price equals $200 per unit.
Business
1 answer:
Maslowich3 years ago
7 0

Answer:

C) the market price falls below $170 per unit.

Explanation:

If this firm is a price taker, it means that it is operating in a perfect competition market. In such markets, since the entry and exit barriers are very low or nonexistent, if the equilibrium price falls below the variable cost, the firms should halt production in the short run until the equilibrium price rises again. The firm should resume production only after the equilibrium price exceeds the variable costs.

This situation is only applicable on the short run. On the long run the firm should only produce if the equilibrium price is greater or equal to its marginal cost.

You might be interested in
Which of the following is NOT one of the main tasks of strategy-making in a diversified company? 1. establish investment priorit
oksano4ka [1.4K]

The question seems incomplete but here is the complete question.

Which of the following is not one of the main tasks of strategy-making in a diversified company?

1) Establish investment freedom priorities so that resources re steered into most attractive businesses.

2) initiate actions to boost combined performance of the corporation's collection of businesses

3) Picking the new industries to enter and deciding on the

means of entry.

4) pursuing opportunities to leverage cross-business value

chain relationships and strategic fit into competitive

advantage.

5) Divesting well-performing businesses.

Answer:

5) Divesting well-performing businesses.

Explanation:

A firm or company's strategy-making can be greatly influenced y several factors which do not include the castigation of a fellow company or firm. Strategies involve several methods, factors or ways which a firm, company or business can adopt that may improve it's outputs or other goals which are of great relevance. The other factors mentioned above are great strategies which firm can develop n other to achieve its goals and objectives.

6 0
3 years ago
How are a startup's financing requirements estimated
Flauer [41]

Answer:

How are Startups Financing Requirements Estimated?

1. Make Use of a Startup Work Sheet to be Able to Plan the Initial Financing.

2.  Focus on the Expenses versus Assets. Another way for startups to estimate their financing requirements is by means of focusing on the expenses versus assets.

3. Similar Articles.

4. Cash Balance Prior to the Starting Date.

Explanation:

8 0
3 years ago
How are envelopes and letterhead different? information included
xz_007 [3.2K]
The Layout would be the answer to this question
7 0
3 years ago
Which of the following scenarios best describes differentiation? Multiple Choice
rosijanka [135]
It’s b !!!!!!!!!!!!!!!!
8 0
3 years ago
evaluate whether locating closer to raw materials is the most important factor when locating a business. if not what other facto
lutik1710 [3]

Answer:

The nature of the major raw material requires to produce the product of the business determines the level of importance attached to locating a business closer to raw materials.

Explanation:

The level of importance attached to locating a business closer to raw materials depends on the nature of the major raw material requires to produce the product of the business.

When the major raw material requires to produce the product of the business is a heavy raw material that cannot be easily transported, locating the business closer to the raw material will be the most important factor.

However, when the major raw material requires to produce the product of the business can be easily be transported, locating the business closer to raw materials will NOT be the most important factor. In this case, some of the other important factors to consider will include proximity to markets; availability of labour; water supply; availability of power, fuel or gas; waste products disposal facility and among others.

6 0
3 years ago
Other questions:
  • The two-year interest rate is 10% and the expected annual inflation rate is 5%.
    12·1 answer
  • What is Eduloan and is it a good choice is it affordable...Why should we choose Eduloan and how does it work
    13·1 answer
  • Yvon asks zach, "do you want to buy one of my fishing rods?" under common law this is
    9·1 answer
  • Discriminatory impulses in the labor market can emerge at a number of levels:
    7·1 answer
  • Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $8
    12·1 answer
  • Tom’s T.V.’s sold one of their premium products, a new 60" flat screen 3D T.V. to a customer who paid $2,000 in cash. How would
    13·1 answer
  • You are the manager of the packaging department in a cookie factory. (Obviously, the packaging employees cannot eat the cookies
    11·1 answer
  • A U.S. trade policy that restricts the sale of foreign goods in the U.S. market will a. reduce the demand for U.S. export goods
    13·1 answer
  • something people buy to protect themselves from losing a lot of money in the event something happens to them or their property i
    5·1 answer
  • Explain how we derive the supply curve for an individual firm
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!