Answer: Option (A) is correct.
Explanation:
Correct Option: A.supply whatever amount consumers demand at a price determined by the minimum point on the typical firm's average total cost curve.
In the long run, equilibrium price of a perfectly competitive firm implies that there is no economic profit for the firm. This situation occur when the marginal cost is equal to the average total cost.
The firm is break even when the price is equal to the minimum point of average total cost of the firm. So, there is no possibility of economic profit for the firm.
Answer:
Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer period while revenue expenditures are typically referred to as ongoing operating expenses, which are short-term expenses that are used in running the daily business operations.
Answer:
e. $20
Explanation:
The net asset value (N) for The New American Enterprise Mutual Fund's portfolio is given by the funds total value ($120,000,000) subtracted by its liabilities ($4,000,000) and then divided by the number of shares issued (5,800,000) .
The fund's net asset value is $20
Answer: $305
Explanation:
The avoidable production cost for Chris to produce one mini long board goes thus:
Unit Level Cost = $280
Add: Product Level Cost = $25,000 / 1000 units = $25
Then, the avoidable cost to produce one unit will be:
= $280 + $25
= $305
Answer:
B. Cash Flow problem
Explanation:
Cash flow problem occurs in a business when the business struggles to pay back debts. It happens when a business cannot longer cover its debt payments and operational expenses. It is very common in new and growing business, because during growth period in a business, expenses are larger than receivables.
Janis in this case is facing cash flow problems as she is not getting enough clients and receivables to pay back the expenses her equipment is bringing in. The major solution to cash flow problem for short term/temporary issues is Financing.
