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mezya [45]
3 years ago
12

Suppose that in the second year her average total cost per dog is $35 and that $20 of that is associated with the variable cost.

She finds that the market price for dog grooming has fallen, however, to $30 per dog. Should she stay open or close the business? Briefly explain your answer.
Business
1 answer:
jok3333 [9.3K]3 years ago
6 0

Answer:

She should stay open, because the revenue of from dog grooming ($30 per dog), is still high enough to cover her variable cost of $20 per dog, even though she is operating at a loss.

Explanation:

Profit = Revenue - Total costs

Total costs = Fixed costs + variable costs

Profit = $30 - $35 = -$5 per dog

This shows she is operating at a loss of $5 per dog.

If a company does not make enough revenue to cover its total costs, then it is operating at a loss.

However such a company must consider its variable cost before deciding whether to shut down.

A company should only shut down if it is unable to make enough revenue to cover its variable cost.

If a company is operating at a loss but can at least cover its variable cost, then it should stay open at least in the short run.

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3 years ago
If a decrease in income increases the demand for a good. True or False
Masja [62]

Answer:

If a decrease in income increase the demand for a good , the good is an inferior good.

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Inferior goods have an indirect relationship with income

A normal good is a good whose demand rises when income increases and falls when income falls.

Normal goods have a direct relationship with income.

A substitute good is a good that can be used in place of another good. For example if good A and B are substitutes, if the price of good A increases, it would become more expensive for consumers and consumers would shift to consuming good B. As a result the demand for good B would rise and the quantity demanded of good A would fall.

Complements are goods that are used together. If the price of one of the goods increases, the demand for the other good falls and vice versa.

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I hope my answer helps you

Explanation:

3 0
4 years ago
In the management section of the proposal the contractor should define the that will be performed and provide a of what each maj
SVETLANKA909090 [29]

Answer:

Description of the major tasks.

Deliverables.

Project schedule.

Related experience.

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Explanation:

•Description of the major tasks explains the specific job duties, these duties are the major reasons for the project.

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•Project organization: Structures put in place to facilitate supervision and implementation of every required project activity.

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What is a good way to find a business idea that put your talents and interests to the best use?
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Given :

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Apr-06:

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