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BaLLatris [955]
3 years ago
9

By shutting​ down, a firm A. can avoid paying taxes on its previously earned profits. B. stops receiving revenue but continues t

o pay variable costs. C. stops receiving revenue and is stuck with its fixed costs. D. avoids its sunk costs as well as its variable costs.
Business
1 answer:
stiv31 [10]3 years ago
4 0

Answer:

<h2>C. Stops  receiving revenue and is stuck with its fixed costs  </h2>

Explanation:

Shut down means that a firm is temporarily suspending the production but not exiting the industry or going out o business and the firm would start production if the market improves. It is a short-run decision.  A firm that has been shut down generates zero revenue and doesn't incurs variable costs, but does incurs the fixed costs. Its profits is equal to the negative of fixed costs. R<em>ents and other business costs that remains constant regardless of the good and services produced is called fixed costs</em>.

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Suppose the value of owning a first car is worth $30,000 to you, and the value of owning a second car is worth $24,000 to you. S
VLD [36.1K]

Answer:

No, the second car shouldn't be purchased.

Explanation:

After buying the first car, when second car is to be brought the marginal benefit is lower than marginal cost. So, only one car should be brought.

6 0
3 years ago
Scenario 14-4 The information below applies to a competitive firm that sells its output for $40 per unit.
Dominik [7]

The average revenue has the same value at Q = 150 and Q = 151.

Further explanation:

Average fixed cost: The fixed cost per unit is termed as the average fixed cost. The fixed cost does not change with the level of output. However, the average fixed cost changes along with the level of output.

Total revenue: The total revenue refers to the amount of revenue generated during a particular period of time. The total revenue is the total of the revenues.

Total cost: The total cost is the sum total of the variable and fixed cost during the year. The total cost represents all the direct, and indirect costs occurred on a product.

Average total cost: The total cost per unit is also termed as the average total cost. The average total cost represents the cost, which is computed by dividing the total cost with the number of units manufactured during the year.

Calculate the total revenue when the quantity of output is 150 units:

It is given that the output is sold at $40 per unit.

\text{Total revenue at 150 units}=\text{Number of units produced}\times\text{Sales price per unit}\\ =150\times\$40\\=\$6,000

Therefore, the total revenue when the quantity of output is 150 units is <u>$6,000.</u>

Calculate the average revenue when the quantity of output is 150 units:

\text{Average revenue}=\dfrac{\text{Total Revenue}}{\text{Number of units}}\\=\dfrac{\$6,000}{150\text{units}}\\=\$40

Therefore, the average revenue when the quantity of output is 150 units is <u>$40.</u>

Calculate the total revenue when the quantity of output is 151 units:

It is given that the output is sold at $40 per unit.

\text{Total revenue at 151 units}=\text{Number of units produced}\times\text{Sales price per unit}\\ =151\times\$40\\=\$6,040

Therefore, the total revenue when the quantity of output is 151 units is <u>$6,040.</u>

Calculate the average revenue when the quantity of output is 151 units:

\text{Average revenue}=\dfrac{\text{Total Revenue}}{\text{Number of units}}\\=\dfrac{\$6,040}{151\text{units}}\\=\$40

Therefore, the average revenue when the quantity of output is 151 units is <u>$40.</u>

Justification for correct and incorrect answer:

a.

Average fixed cost: The average fixed cost changes along with the change in output level. The average fixed cost is different from that of fixed cost. Hence, this choice is incorrect.

b.

Average revenue: The average revenue is $40 at Q = 150 units and Q = 151 units. The average revenue is equal at both the levels of the output. Hence, this choice is correct.

c.

Total cost: The total cost is not the same at both the levels of the output. The total cost is different for Q = 150 units, and Q = 151 units as the average total cost is also different for both output levels. The total cost increases when the output level changes. Hence, this option is incorrect.

Learn more

1. Breakeven point and contribution margin brainly.com/question/12989446

2. Direct materials efficiency variance brainly.com/question/12987884

3. Cost of materials

brainly.com/question/4783765

Answer details  

Grade: Senior School

Subject: Cost Accounting

Chapter: Cost Behavior

Keywords: Scenario 14-4, the information below applies to, competitive firm, scenario 14-4 the information below applies to competitive firm, when the firm produces, which of the following magnitudes, average fixed cost, average revenue, average cost per unit, average total cost, at Q = 150 and Q = 151, represent the quantity of output, refer to scenario 14-4, when the firm produces and sells 150 units of output.

6 0
3 years ago
Read 2 more answers
Item 16Item 16 Oscar makes purchases of an existing product (X) such that the marginal utility of the last unit he consumes is 1
padilas [110]

Answer:

increase his consumption of product Y and decrease his consumption of product X

Explanation:

Base on the scenario been described in the question, Oscar make purchase of a X product which he already has, which after consuming has a 10 utils costing him $5, he also purchase another product Y he which after consuming has 8 until costing, this suggest that Oscar reduce his consumption on X and increase his consumption on Y according to the equal marginal principle.

The equal marginal principle talks about the behavior of a consumer in sharing his available income within various goods and services. This law states that how a consumer distributes his money income within various goods to be able obtain maximum satisfaction.

5 0
3 years ago
HELP ME PLEASE I don't understand how to do this ​
nata0808 [166]

Answer:

Total output is the same as total revenue

Marginal product is the same as marginal revenue

Average product is the same as average revenue

And the formulaes used is written above the box

excuse me for the bad handwritting

plus marginal revenue is obtained in the change of total revenue hope am write....

7 0
3 years ago
What are some trade barriers in the caribbean
Viefleur [7K]
The freeing up of trade barriers in the Caribbean is being accompanied by foreign exchange liberalisation giving local exporters access to funds they need to bring in foreign goods.
7 0
3 years ago
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