Answer:
So, from a short-run perspective, so long as the sale does not affect other output prices or normal sales volume, a "below cost" sale may result in a net increase in income so long as the revenues cover the differential costs.
However, in the long run all costs must be covered or management would not reinvest in the same type of assets.
If the company must continually sell below the full cost of production then it will most likely get out of that particular business when it comes time to replace those facilities.
I am not sure what are you asking please explain more
Answer:
Luis can be classified as actively engaged.
Explanation:
Members of an organization can be classified according to their level of engagement with the organization:
- Actively Disengaged
- Actively Engaged: employees that perform their work with passion and are emotionally attached to the organization.
- Not Engaged
Answer:
a. increasing opportunity costs as more and more of one good is produced
Explanation:
A production possibility frontier is a curve that shows the two combinations of goods an economy can produce given that its resocurces are fully employed.
The production possibility curves is bowed outwards because of increasing opportunity costs as more and more of one good is produced.
If more of one good is to be produced, more of the second good would be given up to increase the production of the first good.
The attached image is the graph of a production possibility frontier. At point A, the maximum amount of good X is produced with zero quantity of good Y. To increase production of good Y and move to point B, some quantities of good X would be given up. To further increase the production of good Y and move to point C, even more quantities of good X would be given up.
I hope my answer helps you