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klemol [59]
3 years ago
13

Is the following statement True, False or Uncertain? Explain your answer. "In the long run, firms will exit the market if price

falls below the firm’s average total cost
Business
2 answers:
Ratling [72]3 years ago
4 0

Answer:

True

Explanation:

The purpose of any business is to make profit, which is from the difference between revenues (price of product multiplied number of product sold) with the cost of goods sold (average total cost multiplied number of product sold).

In short, the profit = (price - average total cost) x number of product sold.

Normally the price must be above/ higher than cost, so that the firm can have profit. Sometime the price in the market go down, so the firm have have to adjust down its price also to maintain customer's purchases.

Once its price is down, but the firm's average total cost is still same as previous, the firm can not have profit as previously. The firm may bear this situation as long as its capital capacity allowed, but will not be too long.

nexus9112 [7]3 years ago
4 0
I think no , if he decided to leave, he will lose his share in market . And this not easy to to in short run
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Because common shareholders are entitled to the profits that remain after all of a corporation's other obligations have been met
Studentka2010 [4]

Because common shareholders are entitled to the profits that remain after all of a corporation's other obligations have been met, common shareholders are known as Residual owners.

<h3>What does Shareholders means?</h3>

A shareholder (in the US frequently alluded to as investor) of a company is an individual or legitimate substance.

A body politic, a trust or organization) that is enlisted by the partnership as the lawful proprietor of portions of the offer capital of a public or confidential partnership. The impact of a shareholder on the not entirely set in stone by the shareholding rate claimed. Shareholders of a company are legitimately isolated from the actual enterprise.

They are for the most part not at risk for the organization's obligations, and the shareholders' responsibility for organization obligations is supposed to be restricted to the neglected offer cost except if a shareholder has offered ensures. The company isn't expected to record the helpful responsibility for shareholding, just the proprietor as recorded on the register.

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8 0
2 years ago
A national survey for safety identified 20% hazard comes from company a, 20% from b, and 50% from company
andreyandreev [35.5K]
The probability that he will call A is 1 out of 2 because A and B have the same percent of Hazard. The probability that he will call C is 0/3 because it is more hazardous than the rest.
6 0
3 years ago
Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subco
irakobra [83]
Im pretty sure the answer is B
7 0
3 years ago
Two or more organizations that join forces in order to achieve advantages that neither can perform as well alone are known as __
SpyIntel [72]

Answer:

correct answer is Strategic allies

Explanation:

Strategic allies is a arrangement between 2 or more than 2 organization for undertaking mutual beneficial projects even both retain their independence.

as they have less complex than a joint venture  

and for improving their product and development competitor in the market , they can enter into a strategic alliance

so as that both organizations can work on common coal with benefit

so correct answer is Strategic allies  

5 0
3 years ago
Carl is a self-employed real estate agent. For the current year, his self-employment net earnings (revenues minus expenses) are
lisov135 [29]

Answer:

$12,240

Explanation:

Social security Tax = $80,000 x 12.4%

Social security Tax = $9,920

Medicare Tax = $80,0000 x 2.9%

Medicare Tax =  $2,320

Total tax = $9,920 + $2,320

Total tax = $12,240

3 0
3 years ago
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