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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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A 30-year U.S. Treasury bond has a 4.0 percent interest rate. In contrast, a 10-year Treasury note has an interest rate of 2.5 p
iVinArrow [24]

Answer:

1.0 percent

Explanation:

Expected real rate of return can be described as the proportion of the annual return or profit from an investment after deducting inflation.

The purpose of the real rate of return is to show the accurate and actual purchasing power of a certain sum of money over a period of time.

An investor can therefore know what is the real return of a nominal return when the nominal interest is adjusted for inflation.

From the question, we have:

Interest rate on 10-year Treasury note = 2.5 percent

Expected Inflation = 1.5 percent

Therefore, the expected real rate of return on the 10-year Treasury note is derived by subtracting the 1.5 percent expected Inflation from the 2.5 percent interest rate on 10-year Treasury note as follows:

Expected real rate of return on the 10-year Treasury note = 2.5 - 1.5

                                                                                                = 1.0 percent

Therefore, the expected real rate of return on the 10-year U.S. Treasury note is 1.0 percent.

All the best.

4 0
3 years ago
Leesburg sold a machine for $2,200 on november 10th of the current year. the machine was purchased for $2,600. leesburg had take
taurus [48]
The original price of the machine is $2,600 but it has a depreciation value now of $1,200.

*original price - depreciation value = machine's existing value*
$2,600 - $1,200 = $1,400

However, they've sold the machine for $2,200 instead of 1,400 (which is supposedly the existing price). So, they've gain $800 ($2,200 deducted by $1,400) out from this transaction. 
7 0
3 years ago
A car dealership performs a credit check on a potential customer. according to the credit bureau, the customer's credit score is
Nikitich [7]
A 710 credit score is considered good. People with this credit score are likely to be approved for credit cards and loans with average interest rates and terms.
5 0
3 years ago
Which of these is an advantage of filing for Chapter 7 bankruptcy?
kotegsom [21]

Answer:

B) Debts can usually be erased in about 6 months.

3 0
2 years ago
How do i give brainlyest
Roman55 [17]

Answer:

when you ask a question and you get one answer you cant give someone brainliest until another person answers and after two people answer you chose which one is the best by clicking the little crown in the upper right corner of their answers

Explanation:

3 0
3 years ago
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