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algol13
3 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]3 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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During 2004 Elway Corporation transferred inventory to Howell Corporation and agreed to repurchase the merchandise early in 2005
Svet_ta [14]

Answer:

d. Product financing arrangement.

Explanation:

A business transaction in which an organization sells and agrees to repurchase inventory with the repurchase price equal to the initial or original sales price plus the carrying and financing costs is known as the Product financing arrangement.

A product financing arrangement is more likely to exist when the seller commits to having a third party client purchase the item and then agrees to repurchase the item from the third party client.

It's noteworthy to know, that the seller controls how the item sold under either of the above mentioned situations is analysed and disposed of.

6 0
3 years ago
When can interest be included in the acquisition cost of a plant asset?
hammer [34]

Answer:

a. during the the construction period of a self-constructed asset

Explanation:

"Determining the cost of constructing a new building is often more difficult. Usually this cost includes architect’s fees; building permits; payments to contractors; and the cost of digging the foundation. Also included are labor and materials to build the building; salaries of officers supervising the construction; and insurance, taxes, and interest during the construction period."

Reference: Porter, Debbie, and Tidewater Community College. “Principles of Accounting I.” Lumen, 2019,

7 0
3 years ago
Career skills refer only to the simple tasks employees perform. True or False
Eva8 [605]
It would most likely it would be false
3 0
3 years ago
Read 2 more answers
Just before colliding with another vehicle, you should __________.
S_A_V [24]
Just before colliding with another vehicle, you should t<span>ake your foot off the brake pedal.
</span><span> There are several things you can do in order to minimize the consequences of collisions. One of them is to take your foot off the brake pedal. Other are:
- If possible, swerve to the right side of the road when you take evasive action.
</span><span>- Another general rule is to hit an object with a glancing blow (at an angle) rather than head-on.</span>
4 0
3 years ago
A rapid transit vehicle manufacturer produces two types of vehicles that have different dynamic characteristics and door I capac
Komok [63]

Capacity ratio is a comparison of the number of working days in the budgeted period as well as the actual number of working days in the same period.

<h3>What is the capacity ratio?</h3>

Your information is incomplete. Therefore, an overview of the capacity ratio will be given.

Capacity ratio defines to show the capacity. The capacity utilization ratio simply measures whether the total direct labor hours worked in a production cost center in a period was either greater or less than what was budgeted.

It is calculated as:

= (Actual direct labor hours worked/budgeted direct labor hours) × 100%.

Learn more about capacity ratio on:

brainly.com/question/26092288

4 0
2 years ago
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