Answer:
(i) The farm can cover its revenue using its total variable cost, therefore the farm will continue producing 200 units
(ii) The farm cannot cover its revenue using its total variable cost, therefore the farm will shut down
(iii) The two relevant points on supply curve will be: (Price = $12 & Quantity = 0) and (Price = $25 & Quantity = 200)
Explanation:
(i)According to given data, When output is 200 but price is $20, this price is equal to ATC, so the farm breaks even. But since this price is higher than AVC of $15, the farm can cover its revenue using its total variable cost, therefore the farm will continue producing 200 units.
(ii) When output is 200 but price is $12, this price is equal to ATC, so the farm makes economic loss. Also, this price is lower than AVC of $15, so the farm cannot cover its revenue using its total variable cost, therefore the farm will shut down.
(iii) The farm's supply curve is the portion of its Marginal cost (MC) curve above the minimum point of AVC. Since price equals MC, the two relevant points on supply curve will be: (Price = $12 & Quantity = 0) and (Price = $25 & Quantity = 200).
Answer:
B.
Explanation:
The investor should consider that they may find that the restaurant's financial statements undervalue the true value of its resources. If this were to be the case then the investor would have made a lot of money since they would have paid face value for the restaurant when in actuality it was massively undervalued and is worth a lot more, meaning he would make a large profit on his investment from the beginning.
Answer:
3400, Rise, C
Explanation:
1. Since there are just 3 firms and two already has a sum total of 70% (40+30), the third firm will have a market share of 30%
HHI= 
HHI= 1600+900+900
HHI= 3400
2. Abe's Bikes with 30% leaves the market, if the two firms were to share Abe's market share equally (15+15), it will leave Firm A with 55% (40+15) and Firm B with (30+15) 45%
Therefore,
HHI= 
HHI=3025+2025
HHI= 5050
A rise in HHI
3. C
An index of 10,000 corresponds to a monopoly firm with 100% market share.
Answer:
a. subtract the company's expenses from its revenue.
Explanation:
For computing the profit or loss we simply deduct all the expenses incurred from the revenue earned.
If the revenue is more than the expenses than it would profit to the company
And, if the revenue is less than the expenses than it would be loss suffered by the company
In mathematically,
Net income = Total revenues earned - all expenses incurred
And, the net loss = All expenses incurred - total revenues earned
Hence, the first option is correct
