Answer:
Mrs.Smith should continue to operate the business in the short run but shut down in the long run.
Explanation:
According to the shut down rule, at the profit-maximizing positive level of output, a business in a competitive market should continue to operate in the short-term if the price equals to or is greater than the average variable cost, but should shut down in the long term if the price is less than or equal to total cost. Here,
price = $8.10
avg variable cost = $8.00
avg total cost = $8.25
Mrs.Smith should continue to operate the business in the short run but shut down in the long run.
Answer:
annuity
Explanation:
Retirement annuities are helpful because they can guarantee a steady income during your retirement years. They can be either fixed retirement annuities (they provide a fix amount of money until you die) or variable annuities where the amount of money depends on how well your investments perform.
Answer: 11.32%
Explanation:
Given the above variables, the total compound return can be calculated by;
= (1 + r)(1 + r₂)(1 + r₃)...(1 + rn) - 1
= (1 + 10%)( 1 + 15%) (1 - 12%) - 1
= 11.32%
