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Gnom [1K]
3 years ago
8

If a purely competitive firm is currently facing a situation where the price of its product is lower than the average variable c

ost, but it believes that the market demand for its product will increase soon, then ________.
A) the firm will shut down in the short run and leave the industry in the long un.
B) the firm will shut down in the short run, but stay in the industry in the long run if it expects the product price to rise high enough soon.
C) the firm will produce a low level of output in the short run but expand its plant in the long run as demand increases.
D) the firm will produce a low level of output in the short run and leave the industry in the long run.
Business
2 answers:
Daniel [21]3 years ago
7 0

Answer: B) the firm will shut down in the short run, but stay in the industry in the long run if it expects the product price to rise high enough soon.

Explanation:

If a purely competitive firm is currently facing a situation where the price of its product is lower than the average variable cost, but it believes that the market demand for its product will increase soon, then the firm will shut down in the short run, but stay in the industry in the long run if it expects the product price to rise high enough soon.

bearhunter [10]3 years ago
4 0

Answer:

B) the firm will shut down in the short run, but stay in the industry in the long run if it expects the product price to rise high enough soon.

Explanation:

For a company to keep producing any product the price must at least be equal or preferably higher than the average variable production costs. If the price is lower than the average variable production cost, the company will choose to shut down production ate least temporarily. If the company believes that the price will increase in the future, they should decide to stay in the industry until the price increases and then resume the production.

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3 years ago
Sadie and Sam share income equally. For the current year, the partnership net income is $40,000. Sadie made withdrawals of $14,0
4vir4ik [10]

Answer:

Explanation:

Beginning capital balance(Sam)  $58000

+ Currnt year income ( $40000 / 2 = $20000) $20000

[Devide by 2 because they share income]

- Sam's withdrawal  ($15000)

Sam's capital balance = 58000+20000-15000 = $63000

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Suppose that you are a DBA. What data dimensions would you describe to top-level managers to obtain their support for data admin
alexandr402 [8]

The correct answer to this open question is the following.

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2 years ago
Work environment includes physical and social aspects of work. true or false.
sleet_krkn [62]

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8 0
3 years ago
Ashley Anderson pays her HOA dues of $660 for the calendar year. She then sells her property and closes on June 15. What is the
Alenkinab [10]

Answer:

The amount of the prepaid portion that is due back to Ashley using the 12 month, 360 day proration is=$362.34

Explanation:

<em>Step 1: Determine HOA per day</em>

Use the expression below to determine HOA per day;

T=H×N

where;

T=total HOA dues per year

H=HOA per day

N=number of days in a year

In our case;

T=$660

H=unknown

N=360 days

Replacing;

660=H×360

360 H=660

H=660/360

H=$1.83 per day

<em>Step 2: Determine amount of HOA that is due back</em>

Using the same expression;

T=H×N

but;

T=unknown

H=$1.83 per day

N=(June, 15 days)+(July, 30)+(Aug, 31)+(Sep. 30)+(Oct 31)+(Nov 30)+(Dec 31)

N=(15+30+31+30+31+30+31)=198 days

Replacing;

T=(1.83×198)=$362.34

The amount of the prepaid portion that is due back to Ashley using the 12 month, 360 day proration is=$362.34

5 0
3 years ago
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