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jeka94
4 years ago
6

(a) Argue whether or not a firm should continue production if its MR is lower than its AVC. (b) Support your argument with expla

nations.
Business
1 answer:
Delvig [45]4 years ago
4 0

Answer: A firm should not continue production when its MR is lower than its AVC.

Explanation:

The goal of every firm is to minimize cost and also maximize profits and therefore the firm will operate at the output level where the marginal revenue and the marginal cost equates.

A firm should not continue production when its MR is lower than its AVC. Here, the firm will incur a higher loss during production as producing will not offset the variable cost. Therefore, it's better to shut down.

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Answer:

$2,000

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6 0
3 years ago
g If a firm can earn a profit stream of $50,000 per year for 10 years, that profit stream is worth:1)A)nothing today)less than $
galben [10]

Answer:

b)less than $500,000 today, but a positive amount.

Explanation:

By the virtue of the concepts of compounding and discounting, we understand that $1 today is worth more that $1 in the future.

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5 0
3 years ago
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5 0
4 years ago
To achieve high-quality performance, an organization needs to match job requirements and people by performing a job analysis.
scZoUnD [109]

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True

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7 0
2 years ago
.1.3. Briefly explain the Economic term land​
igomit [66]

Answer:

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8 0
3 years ago
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