Answer:
The given statement is True.
Explanation:
In the short run, fixed costs remain the same. There are only variable costs that are incurring and changing the costs incurred in the manufacturing of the products. So a company should accept the special orders as long as the rice of the order is greater than the variable cost incurred in the production of that order. For example, if there is a bakery which bakes cakes. They have their fixed cost of baking oven, the Chef, electricity, etc. They usually bakes sponge cakes. So if they receive the order of Chocolate cake, they can easily get this order because the fixed costs are same, and there will be a slight difference in the making of chocolate cake that can be covered in the price of the cake. So as long as the variable costs of the product is less than the order price, the company should continue producing the special orders.
Answer: Full service retailer
Explanation: In a full service retailing a business organization makes use of fully trained personnel to actively attend to each customer demands. These sales representative answers questions about the product while outlining benefits of purchasing the product to the purchaser.
The carat organization is actively using the full service retailing method. Where each customer is actively attended to and appropriate explanation on the product is given
Answer:
TRUE
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
In the short run, the firm would continue to operate if its revenue covers variable cost. if it doesn't it would shut down.
Answer:
6.125%
Explanation:
Calculation for what yield must municipals offer for the investor to prefer them to corporate bonds
The after-tax yield on the corporate bonds is: 8.75% x (1 - 0.30)
The after-tax yield on the corporate bonds is= 0.0875x 0.7
The after-tax yield on the corporate bonds is= 0.06125*100
The after-tax yield on the corporate bonds is= 6.125%
Therefore what yield must municipals offer for the investor to prefer them to corporate bonds is
6.125%
