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MariettaO [177]
3 years ago
5

If a perfectly competitive firm finds that price is less than average variable cost, it should: shut down immediately. increase

output until price equals marginal cost. decrease output until price equals marginal cost. not adjust output if marginal cost equals price.
Business
1 answer:
Musya8 [376]3 years ago
4 0

Answer: It should shot down immediately.

Explanation:

If the market price is equal to average cost at the profit-maximizing level of output, then the firm is making zero profits. If the market price that a perfectly competitive firm faces is below average variable cost at the profit-maximizing quantity of output, then the firm should shut down operations immediately.

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If you were originally a lender, remain a lender even after a decline in interest rates. Will you get better or worse after the
Anestetic [448]

Answer:

If the lender rate decline he will be worst of due to consumer buying behavior.

Explanation:

  • Lenders are creditors and not all creditors are leanders. During a decline in the interest rates goes down and borrowing gets cheaper. The leander will be worse after the interest rates decline. If the interest rate rises or changes the lender may get higher rates.
4 0
3 years ago
Hancock Inc. retains most of its earnings. The company currently has earnings per share of $11. Hancock expects its earnings to
monitta

Answer:

D1 = $3.50

D2 = $3.50

D3 = $3.50

Ke = 10% = 0.1

Po = <u>D1</u> +     <u>D2</u> +      <u>D3 </u>

      (1+ke)   (1+ke)2   (1+ke)3

Po = <u>$3.50</u> +   <u>$3.50</u>  + <u>$3.50 </u>

        (1+0.1)      (1+0.1)2  (1+0.1)3

Po = $3.18    +  $2.89  + $2.63

Po = $8.70

None of the above

Explanation:

In this scenario, we need to discount the dividend in each year by the required at rate of return of 10%. The aggregate of the price obtained as a result of discounting in year 1 to year 3 gives the current market price.

7 0
3 years ago
Sammy and Monica, both age 67, incur and pay medical expenses in excess of insurance reimbursements during the year as follows:
Mademuasel [1]

Answer:

The Sammy and Monica’s medical expense deduction for regular income tax purposes is $17,750.

Explanation:

For the purpose of regular income tax, the deduction pertaining to medical expenses are available up to the extent it exceeds 10% of AGI.

Deduction available = excess expenses incurred - 7.5% of AGI

                                 = ($16,000  + 4,000  + 2,500 +5,000) - 7.5%*130000

                                  = 27500 - 9.750

                                  = $17,750

Therefore, The Sammy and Monica’s medical expense deduction for regular income tax purposes is $17,750.

5 0
3 years ago
What is the screening effect?
Vlada [557]

Answer:

it's the theory that the completion of college indicates do employers that a job applicant is intelligent and hard-working

4 0
3 years ago
What is profit or loss revaluation?​
sweet [91]

Revaluation is used to adjust the book value of a fixed asset to its current market value. ... If a revaluation results in a decrease in the carrying amount of a fixed asset, recognize the decrease in profit or loss

4 0
3 years ago
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