Answer:
a. keep producing in the short run but exit the market in the long run.
Explanation:
To answer the question, there is a need to look at the effect of the situation on the firm both in the short- run and the long-run
Short Run Effect
The Marginal cost is between average variable cost and average total cost. The business can still continue producing goods because the quantity being produced is still able to cover the average variable cost. This means that the firm is still able meet its variable costs by setting the price of its goods to its marginal cost which is an amount greater than its average variable cost.
Long Run Effect
However, in the long-run the company will begin to have issues even meeting other important costs such as the fixed costs associated with production and as such, the firm will need to exit the market in the long run. For instance the cost of long term loans (principal and interest) may not be covered by the net income of the firm.
The relationship between cost, revenue and profit can be presented using the formula:
Profit = Revenue - Cost
However, in the table given, the number of bikes produces varies. We cannot properly compare the profits per day. To be consistent, let us determine the profit per unit of bike produced. Simply divide the profit with the number of bikes produced (1st column). After you see the results, we can see that the highest profit is $17.5 per unit of bike produced. Therefore, the maximum profit can be attained when 4 bikes are produced each day.
The key events with notes payable are
- Accruing interest incurred but not paid
- Establishing the note
- Recording principal paid
- Recording Interest paid
Perhaps the series of results of an experiment is called an event. For example, let's say you did an experiment by tossing a coin. The result of this experiment is a coin with heads or tails. Social events are defined as events characteristic of people forming a group. This may relate to events, shows, social events or parties, contests, and contests. A simple event is an event that can occur in only one direction. That is, there is only one result. Given the example before tossing a coin, we get a heads or tails result.
Learn more about events here
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Cash flow statement
hope this helps
I believe that this is a true or false question. In my opinion, the answer would be true. Sine when one sector changes the whole economy would be affected and all sectors are affected as well. Hope this answers the question. Have a nice day.
