1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Kryger [21]
3 years ago
6

When total revenues fall below total costs, production should end. However, if marginal revenue exceeds variable cost, productio

n should continue in the short run to help defray fixed costs.
a. True
b. False
Business
1 answer:
const2013 [10]3 years ago
8 0

Answer:

False

Explanation:

A firm should end production and shut down only when its total revenue falls below variable costs, because at this point, production will bring about more losses, compared to if the company isn't producing at all.

<u>If total revenue exceeds and can cover its variable cost, a firm should remain in operation in the short run</u> (even if it is incurring losses), as this contributes to paying off the firm's fixed costs.

You might be interested in
In which of the following situations would the minimum efficient scale of operation provide little or no guidance regarding how
son4ous [18]

Answer:

When the LARC (Long Run Average Cost) curve slopes downward over the relevant or material range of the output

Explanation:

LRAC stands for Long Run Average Cost, is that curve which represents the average cost, in the long period for producing a given or stated quantity of the output.

So, the one situation which will minimize the efficient scale of operation provide no guidance is when the LARC curve is downward sloping over the material range of the output. It states that the market should be served by a single firm in order to minimize the aggregate cost of the production.

5 0
3 years ago
If abc company earned $280,000 in net income and paid cash dividends of $40,000, what are abc's earnings per share if it has 80,
Nadya [2.5K]
<span>To find earnings per share, simply divide the company's net income by the number of shares that are outstanding. In this case, the values are $280,000/80,000. This gives a value of $3.50 for the earnings per share outstanding. Dividends, in this case, are not necessary for the calculation.</span>
3 0
3 years ago
Joseph runs a popular cafeteria chain. He currently has three branches in the city. He plans to enter a franchise contract with
vekshin1

Answer:

B. business format franchise

Explanation:

Under the business format model, the franchisee adopts the entire business operating systems of the franchisor. It means that the franchisee uses the franchisor's trademark, plans, and procedures. Goods and services offered by the franchisee will be identical and will bear the same prices as those of the franchisor.

Joseph plans to operate a business format model of a franchise. The franchisee will have to meet Joseph's standards of operations. For that to happen, Joseph must provide the following.

  1. Initial training
  2. Standardize build-out plans
  3. Operations manuals
  4. Continuous support
  5. Point-of-sale system education
  6. Key functionalities

Joseph has a responsibility to ensure the franchisee adhere to the standards agreement. It means he will have a supervisory role in management for the franchisee.

In return, Joseph will be earning commissions from each franchisee based on the income of each of them.

3 0
3 years ago
Product champions are critical during the period after a new venture project has been defined but before it has gained momentum
Molodets [167]
If i am correct then the answer should be true letter b.)
7 0
2 years ago
List and briefly define the 4 components of a nation’s demand for goods and services
Lynna [10]

Answer:

C , I , G , NX

Explanation:

The components of nation's demand for goods & services is reflected in Aggregate Demand . AD is the total value of goods & services all the consumers are planning to buy during a period.

AD denotes consumption components by 4 sectors of an Economy : Households, Firms, Government , Rest of World .

All 4 sectors form components of AD = Consumption Expenditure, Investment, Government Expenditure, Net Exports (Exports - Imports) by the 4 above sectors respectively.

3 0
2 years ago
Other questions:
  • The _________ program is one of the more common ways to get college credit in high school. It includes an exam that you must tak
    10·2 answers
  • What is the purpose of cost allocation? why is it so important to allocate cost properly in a business?
    5·1 answer
  • How many more calories would a 240-pound man need to consume than a 170-pound man to maintain a constant weight? How many more c
    15·1 answer
  • The last dividend paid by Klein Company was $1.00. The stock’s dividend growth rate is expected to be a constant 5 percent for 2
    12·1 answer
  • The people of a previously quiet and peaceful country have come to recognize the need to expand and improve their security force
    9·1 answer
  • What is the benefit of purchasing a generalized insurance policy?
    8·2 answers
  • PLEASE ANSWER THESE IT WOULD BE A HUGE HELP
    8·2 answers
  • Taxes are costly to market participants because they
    5·1 answer
  • An appropriate fiscal policy for severe demand-pull inflation is
    11·1 answer
  • QUESTION 1
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!