All categories

2 years ago

3. Bob's lawn-mowing service is profit maximizing, competitive firm. Bob mows lawns for $27 each. His

Business

1 answer:

nexus9112 [7]2 years ago

5 0

Answer:

Short-run decision = Do not shut down.

Long-run decision = Exit.

Explanation:

Generally, when the average variable cost is greater than the unit selling price, the firm will shut down in the short-run.

Variable cost = Total cost - fixed cost

Variable cost = $280 - $30

Variable cost = $250

Average variable cost = $250/10 = $25

Selling price = $27

Therefore, selling price > average variable cost, the firm will not shut down in the short-run.

Again, when the average total cost is greater than the unit selling price, the firm will exit in the long-run.

Total cost = $280

Average total cost = $280/10 = $28

Selling price = $27

Since, Average total cost > selling price, the firm will exit in the long-run.

You might be interested in

Organizational development is a broad approach to change with a diagnostic focus that is associated with the systems model of ch

Sliva [168]

Answer:

true

Explanation:

Organizational development (OD) is a process that focuses on increasing the organization's efficiency and effectiveness through ongoing programs that improve the organization's structure and processes, e.g. employee training necessary to improve the employees' productivity. OD must be planned and managed from top to bottom, and the processes must be improved using behavioral science knowledge.

3 0

3 years ago

What is a negative outcome of E-commerce?

kotegsom [21]

1. this activity intrudes on consumers' privacy.

2.potential threat to the security of consumers' personal information

4 0

3 years ago

Holding all else constant, when a bank receives the funds for a deposited check Question 3 options: A) bank liabilities decrease

blagie [28]

Answer:

D) cash items in the process of collection fall by the amount of the check.

Explanation:

Cash Items in the process of collection are all the item which is due and are in collection process. When a fund for a deposited check is received it is transferred to the depositor's account and in process collection are reduced the balance of account holder is increased. So, the appropriate answer is D) cash items in the process of collection fall by the amount of the check.

6 0

2 years ago

PLS HELP IF YOU CAN!! In the first year of your career you learn that to be promoted, you must demonstrate that you have the ski

Salsk061 [2.6K]

Answer:

Although all of these are good ways to demonstrate skills the best would be to finish projects as it shows you are dedicated and you can put those skills into action with different tasks.

Explanation:

4 0

2 years ago

Read 2 more answers

Bramble Corp. factors $7200000 of its accounts receivables with recourse for a finance charge of 5%. The finance company retains

saul85 [17]

Answer:

See below

Explanation:

Given the above information, first we'll compute net proceeds

Cash received $7,200,000 × 86%

$6,192,000

Add:

Due from factors $7,200,000 × 9%

$648,000

Less;

Recourse obligation

($5,000)

Net proceeds

$6,835,000

5 0

2 years ago