Yes, because firms produce where the marginal benefit to consumers equals the marginal cost of production.
Answer:
B. Larger growth opportunities based on market size
Explanation:
Took the test and guessed it correctly
Answer:
D. Corn is not used in the production of other goods.
Explanation:
D is the only option that can be an argument for the total value of the corn produced to be included as corn for the same year in the GDP.
This is due to the fact that only the final production is recorded in the GDP, this means that no goods are registered that are going to be part of other productive processes (generally raw materials) since double accounting would be incurred.
If for example, corn were part of another productive process and this productive process begins next year, that part of the corn used to produce that good would be included in the GDP of the year in which the product will be produced (the one that corn is used in the production).
This means that the lobbyist can only rely on option D (include all the value of corn for the year in which it was produced) if in this country the corn is not part of another productive process.
In this scenario, Barry would be classified as a(n) <u>A. aggressive</u> salesperson.
<u>Explanation</u>:
Barry works for a popular radio station as a sales representative. From his conversation in the above scenario it is clear that Barry is an aggressive salesperson.
One day Barry was discussing with the marketing manager of a larger retail store regarding their new ad program. Barry was clear that the ad will be broadcasted around the clock all over the town if they agree with their radio station. He told that the ad will be aired day after tomorrow if the manager is ready to sign today.
Answer:
a. keep producing in the short run but exit the market in the long run.
Explanation:
To answer the question, there is a need to look at the effect of the situation on the firm both in the short- run and the long-run
Short Run Effect
The Marginal cost is between average variable cost and average total cost. The business can still continue producing goods because the quantity being produced is still able to cover the average variable cost. This means that the firm is still able meet its variable costs by setting the price of its goods to its marginal cost which is an amount greater than its average variable cost.
Long Run Effect
However, in the long-run the company will begin to have issues even meeting other important costs such as the fixed costs associated with production and as such, the firm will need to exit the market in the long run. For instance the cost of long term loans (principal and interest) may not be covered by the net income of the firm.
