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lana66690 [7]
3 years ago
13

For each of the following statements, indicate whether it is true, false, or uncertain and explain why. Average total cost is al

ways greater than average variable cost by a constant amount. In the short run, a perfectly competitive firm always maximizes profit when average total cost is at minimum. If a firm shuts down in the short run, its profits will equal zero.
Business
1 answer:
Vera_Pavlovna [14]3 years ago
3 0

Answer:

All : 1st, 2nd, 3rd are False

Explanation:

1.  Average total cost is always greater than average variable cost by a constant amount : False.

Average Total Cost (ATC) is the total cost per unit of output. ATC = Average Variable cost (AVC) + Average fixed cost (AFC). Total fixed cost (TFC) is the cost which stays same at all levels,  AFC = TFC / Q falls with increasing output. So, ATC is greater by AVC, by AFC (decreasing) amount.  

2. In the short run, a perfectly competitive firm always maximises profit when average total cost is at minimum : False

A perfectly competitive firm maximises profit in short run when difference between its Total Revenue & Total cost is maximum, Marginal Revenue = Marginal Cost & MC > MR after the point.

3.  If a firm shuts down in the short run, its profits will equal zero : False

A firm shuts down in short run, when its price < average variable cost,  or firm's average revenue < average variable cost. This implies that firm must be incurring losses, if it shuts down.

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strojnjashka [21]

Answer:

The correct word for the blank space is: Plotters.

Explanation:

Plotters are high precision printing and cutting devices. They are used to print plans and projects. They are considered external devices that allow drawing o scheme diagrams and graphs. There are monochromatic plotters and other versions of four, eight, and twelve colors.

5 0
3 years ago
Samantha, who is single and has MAGI of $28,000, was recently employed by an accounting firm. During the year, she spends $2,500
gregori [183]

Answer:

a. CPA exam review course $0

b. Law school expenses $4,000

Explanation:

1a. CPA exam review course will be $0 because the IRS has disallowed any costs that will lead to qualifying for a different trade .

1b. The Law School expenses will be $4,000 . Based on section 222, Samantha is been limited to $4,000 of the tuition paid.

Therefore the balance of $650 is excess tuition $200 + $450 books which will not qualify under the regular education expense deduction due to the negative position of the IRS on law school costs.

6 0
3 years ago
Trent Automobiles Inc. was expecting a large shipment of scrap metal a week earlier. As the shipment did not arrive on time, the
elena-s [515]

Answer:

Lack of efficiency.

Explanation:

As Trent Automobiles Inc. was expecting a large shipment of scrap metal and due to the fact that it could not arrive on time, the only way to compensate the loss was to make an urgent order for same quantity of scrap metal from a local manufacturer, which led the company to compromise on the quality. If proper track was kept and all the upcoming scenarios had been calculated before hand with a ready substitute raw materials before hand, this would have been not the result. Thus, this indicates a complete lack of efficiency from the side of management of the company.

8 0
3 years ago
What are the three basic tools used to implement U.S. monetary policy? Describe in detail how each tool can be used to both expa
Luba_88 [7]

Answer:

The three basic monetary policy tools used by the U.S are; The discount rate, open market operations and reserve requirement.

Explanation:

The discount rate – This is the rate charged by Reserve Banks when lending short term loans to Commercial Banks. If there is a wish to expand the economy, the discount rate is lowered. This, in a domino effect, causes other interest rates such as consumer lending by commercial banks to lower. This encourages lending and spending by consumers and businesses through an increase in the money supply. When there is a wish to implement a contractionary policy, the discount rate is lowered thus causing other lending and borrowing rates to increase. This discourages borrowing and lending, eventually reducing the money supply in the economy.

Open market operations – This policy is achieved through the buying and selling of U.S Government securities. To achieve expansionary effects on the economy, the Fed buys government securities from members of the public, increasing the economy’s money supply. If, on the other hand, contractionary effects are desired, the Fed sells government securities to members of the public, and thus reducing the money supply.

Reserve requirements – These are portions of deposits that banks must hold in cash, either with the Reserve Bank or in their vaults. When there is a desire to practice expansionary policies, the Reserve bank lowers the requirement level thus increasing the amount of money that is available for lending in the commercial banks. This increases the money supply. If the Fed wishes to contract the economy, then the reserve requirement level is decreased thus reducing the money available for lending and in a ripple effect, the general level of money supply reduces.

4 0
3 years ago
Use the following table for the problem below.
baherus [9]

Answer:

No option is correct:

  • A. Larry offers Curly 1 ping-pong ball for 1/4 of a hat.
  • B. Curly offers Larry 1 hat for 3 ping-pong balls.
  • C. Curly offers Larry 1 hat for 4 ping-pong balls.
  • D. Larry offers Curly 1 ping-pong ball for 1/3 hat.

In order for Curly to win and Larry lose, Curly must offer 1 hat in exchange for 6 or more ping-pong balls.

  • Option A: Larry wins 1 ping-pong ball.
  • Option B: Larry wins 2 ping-pong balls.
  • Option C: Larry wins 3 ping-pong balls.
  • Option D: Larry wins 0.13 of a hat.  

Explanation:

Opportunity costs are the benefits lost or extra costs associated to choosing one investment or activity over another alternative.

In this case, Larry can either have 1 hat or 5 ping-pong balls. Curly can have 1 hat or 2 ping-pong balls.

6 0
3 years ago
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