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natali 33 [55]
2 years ago
12

Mrs. Smith operates a business in a competitive market. The current market price is $7.50. At her profit-maximizing level of pro

duction, the average variable cost is $8.00, and the average total cost is $8.25. Mrs. Smith should (Points : 5)
a.shut down her business in the short run but continue to operate in the long run.b.continue to operate in the short run but shut down in the long run.c.continue to operate in both the short run and long run.d.shut down in both the short run and long run.
Business
1 answer:
adelina 88 [10]2 years ago
4 0

Answer:

Option (D) is correct.

Explanation:

Given that,

Current market price = $7.50

Average variable cost = $8.00

Average total cost = $8.25

It can be seen from the above information that current market price is less than the average variable cost, i.e, $7.50 < $8.00.

Mrs. Smith should shut down its production in the short run as well as in the long run until the point where current market price is greater than or equal to average variable cost.

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Answer:
C

Explanation:

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3 years ago
Suppose a starbucks tall latte cost $4.00 in the united states, 5.00 euros in the euro area and $2.50 australian dollars in aust
Andrews [41]

Answer:B

Explanation:

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3 years ago
Which of the following describes the results of an increase in supply on price and quintity in the market?
Furkat [3]

Answer:

This question is incomplete. However, I found the full question with choices from the web ;

Which of the following describes the results of an increase in supply on price and quantity in the market?

a.) Both price and quantity increase

b.) Both price and quantity decrease

c.) Price increases and quantity decreases

d.) Price decreases and quantity increases

e.) Insufficient information

Explanation:

If the supply of a product or service  increases in the market, it means that there will be an increase in the quantity of that product/service. Due to the interplay of  the law of demand and supply, competition among suppliers will increase, driving the price down. Therefore, there will be a  fall the equilibrium price and increase in quantity , making choice D correct.

7 0
3 years ago
A company purchased new equipment for $60,000. The company paid cash for the equipment. Other costs associated with the equipmen
olya-2409 [2.1K]

Answer: The cost of the equipment is $66,500.

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In the question, $60,000 was the purchase price, the transportation cost of $1,000 was necessary to bring the asset to the location intended by management, $3,000 was the sales tax and the installation cost of $2,500 was also necessary for the asset to function as intended by management. So all these costs would be capitalized as the cost of the equipment as $66,500.

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