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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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or each of the following items, indicate to which major group of the CPI the item belongs: a. Tuition payments to your universit
sergiy2304 [10]

Answer:

a. education; b. housing; c. transportation; d. food and beverages; e. recreation; f. medical care

Explanation:

CPI or consumer price index represents the costs of basket of goods and services across the country on monthly basis and includes the following categories:

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  2. apparel
  3. transportation
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a. Education

b. housing

c. transportation

d. food and beverages

e. recreation

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5 0
2 years ago
Trade restrictions tend to preserve ________ in the protected industries and lead to ________ in other industries.
wolverine [178]
Trade restrictions tend to preserve relatively few jobs in the protected industries and lead to job losses in other industries. Trade restrictions can vary from quotas, embargoes, standards, subsidies, tariffs and more that make it hard to trade (important/export) goods between two companies and also set prices for these. Depending on what is allowed and what is not different industries can benefit from the trade restrictions and some can be harmed by them. 
8 0
3 years ago
Long-term objectives are useful because they Multiple choice question. can be accurately measured, whereas short-term objectives
belka [17]

Answer:

Option B

Explanation:

Option B:

Prevent a company from becoming overly focused on the near term and losing sight of larger trends and opportunities.

6 0
2 years ago
An economic system is a structure for
Dominik [7]
It includes the combination of the various institutions, agencies, entities, decision-making processes, and patterns of consumption that comprise the economic structure of a given community. As such, an economic system is a type of social system....
7 0
2 years ago
Pacifica Industrial Products Corporation makes two products, Product H and Product L. Product H is expected to sell 39,000 units
Gemiola [76]

Answer:

Each product will be allocated with 38.30 dollars of manufacturing overhead as both takes 0.81 DLH

Explanation:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

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(39,000 + 8,000) x 0.81 DLH = 38,070 labor hous

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3 years ago
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