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Bad White [126]
3 years ago
8

Your firm has a total revenue of $1,000, a total cost of $1,500 and a variable cost of $500. What does this tell us about your p

rofits and whether or not you should operate or shut down
Business
1 answer:
Pie3 years ago
7 0

Answer:

Firm should operate.

Explanation:

Here, we are assuming that this is a situation of short run.

A firm will operate or shut down is totally dependent upon whether the firm will be able to cover its variable cost of not. If a firm will be able to cover all of its variable cost then this firm will not shut down and operates in the short run until it covers all of its variable costs.

In this case, given that,

Total revenue = $1,000

Total cost = $1,500

Variable cost = $500

Profits = Total revenue - Total cost

           = $1,000 - $1,500

           = -$500

Therefore, this clearly shows that this firm will be able to cover its variable cost of $500 with the total revenue of $1,000. That's why the firm remains in the market even there is a loss of $500.

Hence, this firm should operate.

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One explanation for greater economic development in moderate versus tropical climates is that institutions established by coloni
r-ruslan [8.4K]

Answer:

C. protected property rights; were extractive and authoritarian

Explanation:

Based on the work of Acemoglu, Johnson and Robinson there were different types of colonization policies which created different sets of institutions. These authors argued that the colonization path was strongly influenced by feasibility of settlements. On the one hand, tropical places where diseases were more likely and affected Europeans the most, settlers formed extractive institutions.  These institutions were not designed to protect private property or provide checks and balances against government expropriation. Their main objective was to transfer as much of the resources of the colony to the colonizer.  On the other hand, where climates were more moderate, settlers seek to replicate European institutions, emphasizing  private property and checks and balances against government power.  

5 0
3 years ago
Sunland Co. at the end of 2017, its first year of operations, prepared a reconciliation between pretax financial income and taxa
Rzqust [24]

Answer:

Deferred Tax Liability= $564,000

Explanation:

The question is to determine the deferred tax liability to recognize by Sunland Co. at the end of the year 2017.

Step 1 :

We determine what the Income tax expense is for the year

Income tax expense= Pretax financial income x Income Tax rate

Income tax expense= $1,410,000 x 0.30 = $423,000

Step 2:

Although we recognized receivables as well as instalmental sales for reporting purposes under the accrual method. However, these will be subject to tax when we decide to recognize it in the future.

As such Deferred tax liability = Future Tax Liability

Deferred Tax liability for Sunland Co= Instalmental Sales x Income tax expense

= $1,880,000 x 0.3= $564,000

4 0
3 years ago
Ultimately, multinational corporations that pursue an international strategy, their headquarters keep tight control over marketi
emmainna [20.7K]

The answer is true. A multinational corporation is one that exports internationally or offers services to customers or clients in other company. The initial step in most organizations' global development plans is typically an international strategy, which involves exporting or importing goods and services while marketing maintaining a headquarters or offices in their home country.

There is no one method that works for all business ventures that involve global expansion. Multinational corporations may decide to invest more in their target markets as they expand and scale.  Depending on your objectives and business style, expanding your company internationally by marketing takes on numerous forms.

To learn more about multinational corporation , click here.

brainly.com/question/494475

#SPJ4

5 0
1 year ago
Label each of the following scenarios with the correct combination of price change and quantity change. In some scenarios, it ma
ZanzabumX [31]

Explanation:

Classifying of each situation with the correct combination of change in price and quantity:

a. On a hot day, both demand for lemonade and supply of lemonade increase - Pp? Q increase

b. On a cold day, both demand for ice cream and the supply of ice cream decrease -  Pp? Q decrease

c. When Hawaii's Mt. Kilauea erupts violently, the demand on the part of tourists for sightseeing flights increases but the supply of pilots willing to provide these dangerous flights decreases- P increase Qq?

d. In a hot area of Arizona where they generate a lot of their electricity with wind turbines, the demand for electricity falls on windy days as people switch off their air conditioners and enjoy the breeze. But at the same time, the amount of electricity supplied increases as the wind turbines spin faster - P decrease Qq?

5 0
3 years ago
Pizza is a normal good. if students' incomes at your college increase, the effect on pizza will be:________
erica [24]

Answer:

Normal goods have a positive relationship with income & purchasing power parity (PPP) with an increase in income ( I )  consumption of normal goods also increased respectively.

So, with the increase in students' income consumption of Pizza will be increased

As normal goods have a positive income elasticity of demand coefficient but it will be less than one.

Explanation:

Let’s discuss the normal goods, as a decrease in the price of normal goods its consumption will boost or increase. As when normal goods become cheaper, they will be consumed much as we know that people will consume them because of the logical reasoning of cheaper than its substitutes. Likewise, with an increase in income, its consumption will also increase but at a stage where it will become inelastic or constant.

You can learn more about Economics

at brainly.com/question/28179544

#SPJ4

4 0
1 year ago
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