Answer:
Option (D) is correct.
Explanation:
Given that,
Current market price = $7.50
Average variable cost = $8.00
Average total cost = $8.25
It can be seen from the above information that current market price is less than the average variable cost, i.e, $7.50 < $8.00.
Mrs. Smith should shut down its production in the short run as well as in the long run until the point where current market price is greater than or equal to average variable cost.
A negative net present value indicates that the project’s return is net loss
<h3>What is a net present values?</h3>
A net present values is a total sum of money that is currently available. It may be in terms of assets or revenue generated.
When there is a negative net present value, it means the <u>revenues generated is lower that the cost </u>of a project. This invariably leads to a loss for a particular company.
Hence a negative net present value indicates that the project’s return is net loss
Learn more on negative present values here: brainly.com/question/14960679
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Based on the economic theory of demand and supply, Say's Law argues that a given "<u>value of supply"</u> must create an equivalent "<u>value of demand</u>" somewhere else in the economy.
This is based on the idea that supply would deduce the size of the macro-economy, which in turn makes sense in the long run.
Jean Baptiste Say is a French economist famous for being an adherent supporter of business competition, free trade, and removing restraints on business activities.
His Say's law was famous as it tried to define the market condition. Say's law is sometimes referred to as the <u>Law of</u> <u>Market</u>.
Hence, in this case, it is concluded that the correct answer is option D. "<u>value of supply; the value of demand."</u>
Learn more here: brainly.com/question/16920124
Answer:
All of them.
Explanation:
Accounting systems are designed to show the increases and decreases in each financial statement item as a separate record. This record is called an account. In the T account, the debit is on the left and the credit is on the right.
The equity for credits and debits for each transaction is build into the accounting equation: assets = liabilities + equity. Because of this doble equality, this system is called double entry accounting system.
In balance sheet accounts:
-asset accounts debit for increases and credit for decreases.
-liability accounts debit for decreases and credit for increases.
-equity accounts debit for decreases and credit for increases.
