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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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Pearland, Inc. has 9,000 shares of preferred stock outstanding. The preferred stock has a $90 par value, a 14% dividend rate, an
Ilya [14]

Answer: $113400

Explanation:

The total amount of dividends that will be paid out to preferred stockholders will be:

= Number of shares × Par value of preferred stock × Dividend rate

= 9000 × $90 × 14%

= 9000 × $90 × 0.14

= $113400

Therefore, the total amount of dividends that will be paid out to preferred stockholders is $113400

8 0
4 years ago
Select all that apply.
Sedbober [7]
A. how long people are expected to live from birth. 
B. how many people go to school. 
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5 0
4 years ago
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Which of the following is not a fee that contributes to the initial cost of leasing a car? a. First payment b. Final payment c.
Darya [45]

The final payment is <u><em>not </em></u>a fee that contributes to the original cost of leasing an automobile, option B is the correct answer.

<h3 /><h3>How is leasing charged?</h3>

The first payment is, predictably, the same as one month's rent.

A lender or lessor will impose an acquisition fee to offset the costs of establishing a loan or lease agreement.

A disposition fee, sometimes known as a turn-in fee, is a cost associated with returning a rented vehicle.

Therefore, final payment doesn't contribute to leasing a car.

For more information about leasing, refer below

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6 0
2 years ago
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GAAP require state and local governments to include in their annual financial reports a budget-to-actual comparison showing actu
Elden [556K]

Answer:

The advantages of requiring both the original and final appropriated budget amounts are:

1. It enables comparison of original (static) budget with the final (flexible) budget.

2. From the comparison, management assesses performances based on actual performance versus original and final budgets respectively.

3. The significant changes based on the level of activity are easily determined.

Explanation:

The use of original and final budgets helps in the comparison with actual performance.  It clearly shows the effect of the level of activity on budget performance.

6 0
3 years ago
Wilhelmina is a divorced taxpayer who provides a home for her dependent child, Eloise. What filing status should Wilhelmina indi
tino4ka555 [31]

Given Information:

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Single

Qualifying widow(er)

Answer:

Head of household  filing status should Wilhelmina indicate on her tax return

Explanation:

She was unmarried at the end of the year and provided over half the cost of keeping a home as a residence for a dependent.

The head of household is the actual US taxpayers ' filing status. A taxpayer must be either single at the end of the year in order to use the status of head of household registration. You paid for the tax year more than half of the cost of owning a home.

For many people who file as head of household, their qualifying dependent is a child.

A qualifying child is your biological child, stepchild, foster child, sibling, step sibling, half sibling or a descendant of one of these. The child also needs to be under the age of 19 (or under the age of 24 if a full-time student).

7 0
4 years ago
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