Answer:
False
Explanation:
A firm should end production and shut down only when its total revenue falls below variable costs, because at this point, production will bring about more losses, compared to if the company isn't producing at all.
<u>If total revenue exceeds and can cover its variable cost, a firm should remain in operation in the short run</u> (even if it is incurring losses), as this contributes to paying off the firm's fixed costs.
Answer
D. A sunk cost is any cost that was expended in the past but can be recovered if the firm decides not to go forward with the project.
Explanation:
As per the data given in the question,
Option (D) is correct among the given statements. A sunk cost is that cost which was occurred and expended in the past and if firm decides to do not go ahead, it can not be recovered.
For illustration - Think about the cost incurred to find out the feasibility of the project. Though in past firm was agree with the project but now even if the firm decides not to the project, this cost can not be recovered.
Answer:
D. Customer-perceived value
Explanation:
Customer-perceived value -
It refers to the method of marketing , where the needs and wishes of the consumers are considered to be very important for the good and services to be successful , is referred to as customer - perceived value .
As when the company creates any product , the likes and dislike of the consumers are always given the priority , in order to get the best results .
Hence , from the given information of the question ,
The correct option is D. Customer-perceived value .
Answer:
The correct answer is d. risk aversion.
Explanation:
Risk aversion is an investor's preference for avoiding uncertainty in their financial investments.
Due to this attitude towards risk, this type of individuals directs their investment portfolio to safer financial assets even though they are less profitable.
The phenomenon of risk aversion implies by definition a certain level of risk rejection by a person who invests in financial markets. A person may face a risk aversion situation, be risk neutral or be risk prone.
