Answer:
True
Explanation:
Since marginal cost is above the average total cost so average total cost is rising.
Answer: Option (b) is correct.
Explanation:
Correct : by eliminating the need to travel to stores to shop.
Internet literally reduced the search cost by saving the travel time of the consumers to the shopping stores. Now days, almost all the consumers prefer to buy products online instead of travelling here and there for the products.
Buying products from the stores involves certain costs such as travelling cost, waste of time, miscellaneous,etc.
Hence, internet facility helps in reducing these kind of costs, that's why in today's world mostly people rely more on internet for shopping and all instead travelling to the stores.
Answer:
There are pros and cons since burger kings its a big company of burgers but in the recent years not too many people is buying more from it, so selling it would be good since it is still an important and known name
Answer:(a) $0.58, $0.45, $0.60 (b ) No the industry is not in long run competitive equilibrium (c) The highest possible price is $0.60 (d) The firm did not earn a profit in terms of accounting profit but loss of ($5)
Explanation:
To calculate the ATC
ATC = TC/ Quantity
At 1,200 unit per day
= 700/1,200
= $0.58
At 1,000 unit per day
= 450/1,000
= $0.45
At 700 unit per day
= 425/700
= $0.60
(b) No the industry is not in the long run competitive equilibrium because the cost is not stable it moves from $700 to $450 and then to $$425
(c) The highest possible price that could exist is $0.60
(d) since profit = Total Revenue - Total Cost
Total Revenue = price × Quantity, since the ATC is $0.60 and Total Cost = $425,Quantity = 700
$0.60 × 700 = 420
Therefore $420 - $425 = -$5
Therefore, in Accounting there is no profit but loss of ($5)