Answer:
a. keep producing in the short run but exit the market in the long run.
Explanation:
To answer the question, there is a need to look at the effect of the situation on the firm both in the short- run and the long-run
Short Run Effect
The Marginal cost is between average variable cost and average total cost. The business can still continue producing goods because the quantity being produced is still able to cover the average variable cost. This means that the firm is still able meet its variable costs by setting the price of its goods to its marginal cost which is an amount greater than its average variable cost.
Long Run Effect
However, in the long-run the company will begin to have issues even meeting other important costs such as the fixed costs associated with production and as such, the firm will need to exit the market in the long run. For instance the cost of long term loans (principal and interest) may not be covered by the net income of the firm.
Answer:
It would take 36 months
Explanation:
Based on the information given we were told that the dealership offers to lease the Honda Accord for 36 months which means that if Nigel have make a choice to lease the Accord by entering into a contract with the dealership after which the lease amount is paid by Nigel each month for 36 months in a situation were the contract terms cannot be possibly carried out within a year, Based on the terms of this contract between Nigel and the Honda dealership the performance of the contract would take 36 months because the Honda Accord lease deal is 36 months and secondly the lease payment is made every month for 36 months.
Answer:
a. Services performed but unbilled totals $600.
- Accrued revenue
- Accounts receivable was understated before the adjustment
b. Store supplies of $160 are on hand. The supplies account shows a $1,900 balance.
- Accrued expense
- Supplies was overstated before the adjustment
c. Utility expenses of $275 are unpaid.
- Accrued expense
- Utilities expense was understated before the adjustment
d. Service performed of $490 collected in advance.
- Unearned revenue
- Revenue was overstated before the adjustment
e. Salaries of $620 are unpaid.
- Accrued expense
- Wages expense was understated before the adjustment
f. Prepaid insurance totaling $400 has expired.
- Prepaid expense
- Insurance expense was understated
The main thing which superior performance allows a firm to do is:
- reinvest some of its profits in gaining more resources and thus grow.
<h3>What is Business Strategy?</h3>
This refers to the creation and maintenance of competitive advantage of a particular market against other competitors which gives a particular business an edge in the market.
With this n mind, we are told that successful business strategies generate value and then if they are able to leverage on this, then they can reinvest the profits.
Read more about business strategies here:
brainly.com/question/25686320
Answer:
Explanation:
e concepts or strategies presented in this class
