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katrin2010 [14]
3 years ago
10

When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sell A) the ou

tput where marginal revenue equals marginal cost. B) the output whop average total cost equals price. C) any positive output the entrepreneur decides upon because all of it can be sold. D) nothing at all; the firm shuts down.
Business
1 answer:
julsineya [31]3 years ago
3 0

Answer: When a perfectly competitive firm finds that its market price is below its minimum average variable cost, it will sell D. nothing at all; the firm shuts down.

Explanation: A perfectly competitive firm does not exist because it a theoretical market structure where all firms sell the same product, they are price takers, the market has no influence on price and there is full freedom. If the market price is below what it will cost to produce the products, the firms will stop producing their products and shut down.

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Based on the expectancy theory, managers who want to motivate their employees should: (select 2 that are true)
emmasim [6.3K]

Determine the rewards valued by each employee, link rewards to performance, determine what factors might counteract the effectiveness of a reward, and make sure the rewards are adequate for the level of performance.

<h3><u>What is expectancy theory?</u></h3>

Expectancy theory is a thought method that emphasizes personal preference and the decision-making process. The process that different people go through when making decisions is outlined by expectancy theory. These options could be decisions for the real world, educational decisions, or fun decisions.

These people base their decisions on expectations of the outcomes of their decisions. We frequently make clothing decisions based on our desire to be both comfortable and ready for the day's events.

Learn more about managers with the help of the given link:

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8 0
2 years ago
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends.
Y_Kistochka [10]

Answer:

The price of the stock today is $13.58

Explanation:

Using the dividend discount model approach, we can calculate the price of the stock today. DDM bases the price of a stock on the present value of the expected future dividends from the stock. The dividends and the terminal value are discounted back to the present value using the required rate of return on the stock. The price per share today for this stock will be,

P0 = 0.75 / (1+0.17)^3  +  0.75 * (1+0.48)  /  (1+0.17)^4  +  

0.75 * (1+0.48)^2  /  (1+0.17)^5  +  

[(0.75 * (1+0.48)^2 *(1+0.1) / (0.17 - 0.1)) / (1+0.17)^5 ]

P0 = $13.584 rounded off to $13.58

8 0
3 years ago
Kirby just inherited $250,000. He would like to hire a financial advisor to provide financial advice and to manage the inheritan
Blababa [14]

Answer:

The answer is A.

Explanation:

According to the details given in the question on the two financial advisor's approach, the first advisor does not request a payment but a commission on the funds purchased with the inheritance money. The second advisor does request payment for the job and also a share on the assets managed with the inheritance money.

If Kirby wants to minimize the upfront expenses which can be described as the sum that is paid before a service or a job is done, then the first advisor is the better option. So the answer is A.

I hope this answer helps.

5 0
3 years ago
If the contribution margin is not sufficient to cover fixed expenses:.
Elan Coil [88]

If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

<h3>What is a Contribution Margin?</h3>

The contribution margin can be expressed in gross income terms.  After subtracting the variable element of the firm's expenditures, it indicates the extra money gained for each product sold.

The contribution margin is calculated by subtracting the selling price/unit from the variable cost/unit.

This metric displays how much a certain product adds to the company's total earnings. It displays the share of revenue that helps to pay the firm's fixed costs and gives one approach to illustrate the profit potential of a certain product supplied by a company.

Therefore, If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

Learn more about contribution margin here:

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7 0
2 years ago
Cosmo has just made his dream come true of buying the property that his restaurant occupies. His excitement is short lived, howe
forsale [732]

Answer:

Realistic aspect

Explanation:

Considering the scenario described in the question it can be concluded that Cosmo shifted his focus onto which REALISTIC aspect of goal-setting theory.

This is because following Cosmo making his dream come true of buying the property that his restaurant occupies, the idea that he could rent out the storefront next to the restaurant for added income is a REALISTIC Aspect of Goal Getting.

This implies that Cosmo is more realistic in terms of his financial abilities and willingness to work toward the goal of paying off the mortgage loan

7 0
3 years ago
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