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
Marizza181 [45]
3 years ago
10

"Mrs. Smith operates a business in a competitive market. The current market price is $8.10. At her profit-maximizing level of pr

oduction, the average variable cost is $8.00, and the average total cost is $8.25. Mrs. Smith should"
Business
2 answers:
STALIN [3.7K]3 years ago
8 0

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.

algol133 years ago
4 0

Answer:

Short-run continue to operate Long turn. decreases cost or leave the market

Explanation:

Mrs Smith will shut-down the business if it cannot cover their variable cost given the current selling price ( This means, given Mr Smith cost structure it cost more to produce it that than to purchased it)

gross profit ( check if profitable in the long-run)

sales price $8.10 - $8.25 total variable cost= -0.15 producing a unit in the current cost structe generates losses for 15 cent in the bottom line

contibution ratio (check for wheather the product is profitable or not in the short run)

sales price $ 8.10 - $ 8.00 variable cost = $0.10 contribution

As the product generates a contribution their volume makes the bottom of the line better If we don't produce it we are going to decrease our losses even more.

<em><u>We have to produce and improve our situation by some of these measurements:</u></em>

  • decrease our variable cost (anytime)
  • decrease our fixed cost (in the long turn as currently are fixed)
  • increase selling price if possible

You might be interested in
every spring, motorists do more driving than during the winter months. every spring, the price of gasoline increases and the mot
Vladimir [108]
Demand is driving up the price
5 0
2 years ago
Which of the following provides the best explanation for how consumer credit can exacerbate inequality?
Flura [38]

Answer:

people with lower wealth and income may have less access to credit and pay higher interest rates when they are approved

Explanation:

8 0
1 year ago
A ________ is a network of activities for accomplishing a business function.
xeze [42]

Answer:

busness process

Explanation:

3 0
2 years ago
Jason and Paula are married. They file a joint return for 2020 on which they report taxable income before the QBI deduction of $
mote1985 [20]

Answer: $28940

Explanation:

Their QBI deduction for the year goes thus:

Jason's QBI amount will be:

= $173000 × 20%

= $173000 × 0.2

= $34600

Paula's QBI amount will be:

= $28,300× 20%

= ($5660)

Therefore, their combined qualified business income will be:

= $34600 - $5660

= $28940

The overall limitation which is based on th modified taxable income will be:

= $247000 × 20%

= $49400

Since $28940 is lesser than $49400, their QBI deduction for the year is $28940

7 0
2 years ago
Information for Nighttime Company's direct labor cost for February is as follows: Actual direct labor hours 70,000 Total direct
podryga [215]

Answer:

71,100

Explanation:

The calculation of standard direct labor hours is shown below:-

Labor rate variance = (Actual rate - Standard rate) × Actual hours worked

$35,000 = ($497,000 ÷ 70,000 - Standard rate) × 70,000

(7.1 - Standard rate) = $0.5

= $6.6 per hour

= Labor variance efficiency = (70,000 - Standard hour) × $6.6 per hour

= -$7,260 = (70,000 - Standard hour) × $6.6 per hour

Standard hours = $70,000 + 1,100

= 71,100

8 0
3 years ago
Other questions:
  • What are the 3 Skills listed for a roofer?
    14·2 answers
  • Which of the following statements is correct?
    5·1 answer
  • Nicole owns a small organic spice company called RaisaSpice and was looking for a new product to add to her company's line. A fr
    5·1 answer
  • The financial model that measures the current value of all cash inflows and outflows using management's minimum desired rate of
    9·1 answer
  • The following information is provided for a company. Accounts payable $ 15,000 Buildings 80,000 Cash 10,500 Accounts receivable
    6·1 answer
  • In one state, a lender holds a lien on real property offered as collateral for a loan. The borrower retains both legal and equit
    7·1 answer
  • The main job of an editor is to do
    15·1 answer
  • Gruber Corp. pays a $9 dividend on its stock. The company will maintain this dividend for the next 3 years. In year 4, the divid
    6·1 answer
  • If the government removes a $4 tax on buyers of restaurant meals and imposes the same 4 tax on sellers of restaurant meals, then
    8·1 answer
  • A general decrease in wages will result primarily in the _____ curve shifting to the _____. aggregate demand; left short-run agg
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!