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hjlf
3 years ago
13

When determining whether to shut down in the short run, a competitive firm should ignore (i) fixed costs. (ii) variable costs. (

iii) sunk costs. A. (ii) only B. (i) and (iii) only C. (iii) only D. (i), (ii), and (iii)
Business
1 answer:
weeeeeb [17]3 years ago
8 0

Answer:

B) (i) and (iii) only

  • (i) fixed costs.
  • (iii) sunk costs.

Explanation:

When a competitive firm must decide whether it shuts down or not in the short run, it must only focus on the variable costs and the marginal revenue. As long as the marginal revenue ≥ variable cost, then the firm should continue to operate in the short run, at least until the market stabilizes.

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In the 1980s, the U.S. government budget deficit rose. At the same time the U.S. trade deficit grew larger, the real exchange ra
givi [52]

Answer:

None of the above is contrary to the predictions of the model.

Explanation:

The budget deficit is when the government spends more than the revenue it makes. Based on the information given, the trade deficit of the United States will grow.

Furthermore, the real exchange rate of the dollar will appreciate and the net capital outflow of the United States will fall as imports will be more than goods exported.

Therefore, the correct option is "None of the above is contrary to the predictions of the model".

7 0
3 years ago
When inventory costs are rising, a company may prefer to use the __________ method in the perpetual system in order to pay the l
mezya [45]

Answer:

LIFO (Last-in-last-out)

Explanation:

Last in last out is the method of inventory valuation where the unit that was added in inventory last would be sold first. In case, of rising prices, the unit added in inventory would cost more than the one added first. So, if LIFO is used in case of rising prices, cost of goods sold would be higher. If COGS is higher, income will fall, thereby reducing tax liability.

So, if the firm wants to pay lower taxes during price rise, it should opt for LIFO method to value inventory.

8 0
4 years ago
A Samoan handicraft company is expanding its market into Australia and New Zealand. The company's director of marketing is resea
Flura [38]

Answer:

Both A) and B)

Explanation:

Samoa is a very small country that consists of two islands, and its population is less than 200 thousand. New Zealand and Australia are therefore, massive countries compared to Samoa, with very different cultures.

The Samoan marketing director should research the geography of New Zealand and Australia because it is very different from Samoan geography. He should also complete a demographic analysis (income bracket, gender, and age fall under this category) in order to profile possible customers.

Finally, cultural aspects and rituals such as those described in point B should also be explored in order to know what to expect from local clients, providers, and business partners, and also, in order to know how to advertise the services. (culture is a crucial factor in determining the type of advertising a company employs).

3 0
3 years ago
When positive externalities are present in a market a. private benefits will be greater than social benefits. b. social benefits
Oxana [17]

Answer:

b. social benefits will be greater than private benefits

Explanation:

Positive externalities can be defined as those that produce positive effects for society in relation to the consumption of a good or service.

This is because the social benefit is the sum of the private benefit plus the sum of the external benefit.

An example of positive externality pertinent to the present is the fact that vaccinating people generates greater positive effects on society, because when vaccinating an individual there is less chance of having more people infected with some disease.

So it is correct to say that the social benefits will be greater than the private ones. Letter b.

5 0
3 years ago
​, how much would government spending have to rise to increase output by ​$
aalyn [17]
1,000 billion is how much the government would spend to increase outputs 
3 0
3 years ago
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