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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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Blank is a process in which an amount of money gained from illegal activities is made to appear as if it is earned from a genuin
GaryK [48]

<u>"Money laundering" </u>is a process in which an amount of money gained from illegal activities is made to appear as if it is earned from a genuine source.


Money laundering is a criminal plan that can work likewise, yet it includes the stowing away of cash as opposed to a ball.  

Money laundering is an approach to cover wrongfully acquired assets. Money laundering works by moving cash in intricate and convoluted monetary exchanges which deceive any individual who may look to follow and audit the exchanges. The goal is to make it hard to recognize the first party to the exchange, known as the launderer.

3 0
3 years ago
When a fruit or vegetable (such as strawberries or lentils) is in season, the demand for it will increase as it becomes cheaper.
Olenka [21]

Answer: True

According to the law of demand, the demand for a good increases when its price falls. Thus, when a fruit or vegetable is in season, it is relatively less expensive than in off seasons. Thus, consumers buy more of these seasonal fruits in season. Thus, demand for the good increases when it becomes cheaper.

Thus, the statement is true.


5 0
3 years ago
Rick is a new product manager for a large biochemical firm. He is currently working on a proposal for a new chemical solvent and
serg [7]

Answer: Rick is a new product manager for a large biochemical firm. He is currently working on a proposal for a new chemical solvent and knows that introducing the new product can be risky because it might fail. He also knows that <u>not introducing new products</u> is risky as well.

Explanation: Launching new products to the market is essential if a company wants to survive. The development of new products is linked to the ability of a company to remain competitive and the longevity of a business. since as time passes new products are created better than the previous ones leaving them obsolete.

7 0
3 years ago
Match each item with the appropriate description.
DanielleElmas [232]

Answer:

Matching items with the appropriate descriptions:

A. Includes both financial and non-financial information for all areas of the business.

ERP

B. Uses accounting information for external reporting.

General Ledger System

C. Is a subset of the non-financial integrated accounting system.

Managerial Accounting

D. Includes the accounting part of the integrated information system.

General Ledger System

E. Uses accounting information for internal reporting.  

Managerial Accounting

Explanation:

- General Ledger System.  This system is where the financial accounting records of debit and credit are kept and summarized.

- ERP: "Enterprise Resource Planning” is the consolidated system for gathering and organizing business data, both financial and non-financial.

- Managerial Accounting: This is where internal accounting data are gathered and analyzed.

8 0
3 years ago
Wember Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The
Sever21 [200]

Answer:

The catering supplies in the planning budget for September would be closest to $3,200

Explanation:

In order to calculate the the catering supplies in the planning budget for September we would have to use the following formula:

catering supplies in the planning budget=The cost formula for catering supplies+cost per job×number of jobs+cost per meal×number of meals

catering supplies in the planning budget=($400+$90*15+145*$10) = $3,200

The catering supplies in the planning budget for September would be closest to $3,200

7 0
3 years ago
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