1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Sauron [17]
3 years ago
12

A firm in a perfectly competitive market has a fixed cost of $1,000 and a variable cost of $500 while it is earning the revenue

of $510. In such a situation, the firm ________ shut down in the short run because _______________________________.
Business
1 answer:
grin007 [14]3 years ago
8 0

Answer:

Firm should not shut down, as it is able to cover its Average Variable Cost

Explanation:

Perfect Competition firms in Short Run : The firms produce even if their average revenue (price) < their average total costs (AC). They continue production until Average variable cost (AVC) ≥ per unit price (P) i.e average revenue (AR). This is called Shut Down Point. P lower beyond AVC implies that firm won't continue even in short run.

Given : Variable Cost (VC) = 500 ; Revenue (R) = 510

Average Variable Costs & Average Revenue are variable costs & revenue, per unit quantity. AVC = VC / Q ; AR (P) = R / Q

R i.e 510 > VC i.e 500

So, R/ Q i.e AR is also > VC / Q i.e AVC

Since AVC > AR (P), firm should not shut down

You might be interested in
As the winter holiday season was approaching, Margie decided to give each team a window display or an indoor display to decorate
Flura [38]

Answer:

The answer is autonomy (Option D)

Explanation:

Autonomy in human resource management refers to the level or degree of discretion and freedom which an employee is permitted to exercise when performing his/her job.  In other words, it means granting employees the freedom on how to approach work.  

A manager or superior like Margie (in the question) who gives employees autonomy simply gives minimal instruction on what needs to be achieved but allows the employees to go about the job in ways that best suit them.

7 0
3 years ago
Which of the following statements about organic foods is true?
statuscvo [17]
I believe its choice D.
5 0
3 years ago
The management of supply chain inventories focuses on: No Answer Selected
Dennis_Churaev [7]

Answer: both internal and external inventories

     

Explanation: In simple words, supply chain inventories refers to the  raw material, finished goods and work in process inventories like factors that together constitutes a supply chain.

Management of supply chain refers tot he process in which the organisation tries to control and maintain the flow of inventories from on stage to the other with the ultimate objective of keeping the supply of finished goods smooth throughout the period.

It starts from procuring the suitable raw materials in right quantity and right time after that it monitors the manufacturing unit so that production is done in appropriate time period and finally makes sure that finished goods will be supplied to the market as per the time period specified by the wholesalers or retailers.

7 0
3 years ago
he Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the u
Elodia [21]

Answer:

1. Total estimated direct labor cost = $148,800

2. Total estimated manufacturing overhead cost = $410,880

3. Total Cash disbursement for the fiscal year = $254,880

Explanation:

Please see attached detailed explanation of the above questions and answers.

8 0
3 years ago
Why beer, wine and liquor may trigger different emotions?
Evgen [1.6K]
Because of there nerves in there brain man o-o
5 0
3 years ago
Other questions:
  • Which of the following terms accurately describes functional strategies that are properly aligned, traceable to the business str
    12·1 answer
  • Stephanie is nervous about giving a presentation at the marketing firm where she works. One of her male coworkers told her, "Don
    7·2 answers
  • The abrupt end of long distance cattle drives in 1885 was primarily due toa. the development of railroad cars that could haul ca
    5·1 answer
  • A partial adjusted trial balance of Piper Company at January 31, 2017, shows the following:
    10·1 answer
  • Sarah owns Fine Cuts hair salon. Hairdressers each rent a chair in the salon where they can style customers' hair, and Sarah pro
    14·1 answer
  • What are two assumptions pertinent to the resource-based view of competitive advantage? Group of answer choices firms are homoge
    13·1 answer
  • Restrictions on the quantity of goods that can enter a country
    5·1 answer
  • By convention, a swap buyer on an interest rate swap agrees to act as the dealer in the swap agreement. hold both principal and
    12·1 answer
  • Carmen Co. can further process Product J to produce Product D. Product J is currently selling for $23.80 per pound and costs $15
    13·1 answer
  • What is the title of the Access form shown above? frmBasic tblRetailer 0001 Spice World
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!