A firm would be experiencing a loss but still be producing if the price is Below $5 but above $4.
When does a firm decision not to produce any output its loss equals?
If the company decides to cease operations and stop generating any output, its revenue is, by definition, zero. By definition, its variable cost of production is also zero, making the overall cost of production for the company equal to its fixed cost.
Under which condition would the firm be incurring a loss?
When producing nothing offers better returns than creating some q units of output, a firm would be better off ceasing operations, for example. This states that if average variable expenses are higher than the price of the good, the company would be better off closing up shop since it cannot pay its variable costs as well.
Why would a firm that incurs losses choose to produce?
When sales fall short of total costs, losses happen. Even though the company is losing money, it is better to produce in the short term rather than closing down if revenues exceed variable expenses but not total costs.
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Answer:
Alternatives Airport at X Airport at Y
Buy land at X 6 -14
Buy land at Y -21 12
Buy land at X and Y -15 -2
Do nothing 0 0
probability 0.55 0.45
Payoff if you buy land at X = (0.55 x 6) + (0.45 x -) = -3
Payoff if you buy land at Y = (0.55 x -21) + (0.45 x 12) = -6.15
Payoff if you buy land at X and Y = (0.55 x -15) + (0.45 x -2) = -9.15
Payoff for doing nothing = 0
The best option is simply doing nothing. The risks are too high, the potential losses are very large and the benefits are really low.
Answer:
390 F
Explanation:
Spending variance is defined as the difference between the actual expenses and planned expenses. It is favorable when the actual expenses is less than planned and vice versa.
Operating cost $3000
Maintenance per snow day - $330
Budgeted snow day - 24
Actual snow day - 26
Actual operating cost - $11,190
Variance
((330*26)+3000 =11580
Actual operating cost = 11,190
Variance = 11580-11190= 390 F
Answer:
The check is written and signed by a payer
Explanation:
Checks are written by payers before any disbursement could be made, this must be strictly followed to enable smooth transaction and make such checks tenable in any bank.