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algol13
2 years ago
9

When the firms in the industry are just able to cover their cost of production, economic profit is zero. Therefore, if demand fa

lls, causing prices to go down even a little bit, all of the firms in the industry will be driven out of business." True or false? Explain
Business
1 answer:
zheka24 [161]2 years ago
6 0

Answer:

The correct answer is false.

Explanation:

A firm incurs both variable cost and fixed cost in the short run. If the firm is able to cover the variable cost in the short run it will continue operating. However, if it is not able to cover its variable cost it will stop operating.  

So, if the demand falls such that total revenue is not able to cover total cost but the variable cost is being covered, the firm will not stop production.  

In the long run, all the costs are variable. So when the revenue is not able to cover cost, the firms will stop operating.

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Suppose a country's productivity last year was 84. If this country's productivity growth rate of 5 percent is to be maintained,
goldfiish [28.3K]

Answer:

88.2

Explanation:

Calculation for what the year's productivity will have to be:

Year's productivity=(84*(1+0.05))

Year's productivity=(84 * 1.05)

Year's productivity=88.2

Therefore this means that this year's productivity will have to be:88.2

8 0
2 years ago
Athlon Company acquired 30 percent of the common stock of Opteron Corporation, at underlying book value. For the same year, Opte
MatroZZZ [7]

Answer:

$16,500

Explanation:

The computation of increase in investment is shown below:-

Here, if the investor holds 20% or more but less than 50% shares than the dividend paid and income earned by the investee are reported.

Increase in investment = Shares of net income - Share of dividends

= $55,000 × 30% - $0 (Dividend is not paid)

= $16,500

Therefore for computing the increase in investment under equity method we simply applied the above formula.

8 0
3 years ago
What is the term called that is intended to clear the cylinder valve of dust or dirt that might otherwise enter the regulator
Len [333]

The answer is: cracking

Cracking only allowed for cylinder that contain non-dangerous substance. Toxic gas for example, would not be allowed because even a single crack could make the gas to leak and harm everything near it. Annual maintenance is required to ensure that no malfunction exist in the object.

7 0
3 years ago
Consider the following data for two variables, x and y.
Firdavs [7]

There appear to be an influential observations in these data as the mean of the leverage value is 0.75.

<h3>How to calculate the mean?</h3>

From the data points given, the influential observation is observation 8. Here, the mean of the leverage value will be:

= 3 × 0.25 = 0.75

Also, the scatter diagram indicates influential observations as it's extreme to the x values.

Learn more about mean on:

brainly.com/question/447169

5 0
1 year ago
The economic system of the united states is considered a:.
oee [108]

Answer:

It is considered a mixed economy

Explanation: Hope this helps<3

5 0
2 years ago
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