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mixas84 [53]
3 years ago
6

n the short run, a perfectly competitive firm will always shut down if total revenue is ____ at all positive output levels. a. l

ess than variable cost b. less than total cost but greater than fixed cost c. greater than fixed cost d. less than total cost but greater than variable co
Business
1 answer:
pychu [463]3 years ago
5 0

In the short run, a perfectly competitive firm will always shut down if total revenue is less than variable cost at all positive output levels.

Explanation:

In the perfect competitive market, firms face the critical situation of the shut down when the firms unable to control the variable cost which includes labor costs, production, and other utility costs. The level of obtaining the low profit can be caused due to the following factors like ineffective management decisions, low sales volumes, market risks and the lack of cordial relations with other countries with respect to the trading of import and export of all goods.

When the operational expenses of the sunk cost (nonrecoverable cost) and the overhead cost in the short-run period are not able to control the efficiency of bridging the gap between the profit and the sales margin in all the conditions of all positive output levels.  

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Cesar claims he found a definite way to save money, "Buy direct from the manufacturer. Any time intermediaries get involved, you
Anni [7]

Answer:

Explanation:

Great question, intermediaries are sometimes necessary since they provide a service in which you might not be able to get the product if their service wasn't provided. That being said we can say that Caesar's claim is not valid in many cases. Intermediaries tend to add an additional cost to a certain product, but like mentioned above they are providing an essential value. In many cases the value they create more than offsets the costs they add. Therefore the validity of Caesar's claim is dependent on the intermediaries provided value.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

3 0
3 years ago
Nagel Equipment has a beta of 0.88 and an expected dividend growth rate of 4.00% per year. The T-bill rate is 4.00%, and the T-b
valkas [14]

Answer:

13.61 %

Explanation:

We have these information to answer the question

Risk free rate = 5.25

Beta = 0.88

Future return on market = 14.75

The formula for required rate of return

= Risk free rate + [ Beta * (future return on market - risk free rate)]

= 5.25 + [0.88(14.75-4.62)]

= 5.25 + (12.98-4.62)

= 5.25 + 8.36

= 13.61%

Therefore the firm's required rate of return = 13.61 %

Thank you!

7 0
3 years ago
When an employee works in year 1 but is paid in year 2, the company must recognize an expense in years) ______.
Ivanshal [37]

When an employee works in year 1 but is paid in year 2, the company must recognize an expense in years 1 only.

An expense is the monetary value of tasks that an organization causes to create income. As the well-known saying goes, "it costs cash to bring in cash.

Normal expenses incorporate installments to providers, worker compensation, manufacturing plant leases, and hardware devaluation.

Organizations are permitted to discount charge deductible costs on their annual government forms to bring down their available pay and hence their assessment obligation.

To learn more about Expenses.

brainly.com/question/24803457

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4 0
1 year ago
True or false: the term economic investment includes purchasing stocks, bonds, and real estate.
Lapatulllka [165]
False because it doesnt invest the stocks
6 0
3 years ago
Which of the following statements is true?
OlgaM077 [116]

Answer:

These statements are true:

A) The Federal Reserve does not set the Federal funds rate, but it influences it through the use of open market operations:

For example, at the very moment the Fed funds rate is 1.75%. If the Fed wanted to raise it to 2%, it would have to do so through the use of open market operations (in this case, because it wants to raise the rate, it would have to sell securities in order to reduce the money supply).

C) The Federal Reserve sets the target for the Federal funds rate, and then uses the reserve ratio to push banks toward that target.

Reserve requirements are perhaps the most powerful, and least often used, monetary policy tool that the Fed has at its disposal. It is very powerful because it directly increases or decreases the money supply.

For example, if the Fed wants to increase the fed funds rate, it can raise the reserve ratio so that banks keep more money in reserves, have less money to loan, and in consequence, create less money, causing the money supply to shrink and the fed funds rate to rise accordingly.

D) The Federal Reserve sets the Federal funds rate.

Correct. More specifically, the Federal Open Market Committee, which meets eight times a year to set the target for the fed funds rate.

3 0
3 years ago
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