Answer:
If a purely competitive firm shuts down in the short run: it will realize a loss equal to its total variable costs.
Explanation:
Shutting down in the short run is a proactive action undertaken by competitive firm to to avoid losses.
Otherwise, if they continue production, they will accrue more losses from operating cost.
in the short run, the firm has is committed to pay spend on recurrent expenditure and even if the firm produces a quantity of zero, it would still make losses because it would still need to pay for its fixed costs such as rent and insurance,
Therefore, competitive firms shut down in the short run so that they can reduce variable costs to zero.
2 purchase land for 19000. A note payable is signed for the full amount
Answer:
Has become very popular, and is also a cause of messing up natural habitats.
Explanation:
Answer:
$260,529
Explanation: Amount in $
Net Income 262,298
Depreciation 29,125
A/R-Increase (17,247)
Inventory (27,969)
Prepaid Expense 1,632
Accounts Payable 7,397
Loss on Equipment 5,293
Net cash flow from operating activities 260,529