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Agata [3.3K]
3 years ago
5

Explain why a firm might want to continue operating and producing goods even after diminishing marginal returns have set in and

marginal cost is rising.
Business
1 answer:
ad-work [718]3 years ago
5 0

Answer:

Explanation:

Overall in a scenario such as this one, a firm may continue operating and producing goods if they believe demand may go back up and result in higher returns or if they expect the tastes of consumers to change in the near future. Both of these will in term cause the market sentiment surrounding the firm's product to change and begin seeing more profitable times. Otherwise, a firm would cut their loses and stop operating and producing goods.

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Baker Corp. is required by a debt agreement to maintain a current ratio of at least​ 2.5, and​ Baker's current ratio now is 3. B
Orlov [11]

Answer:

$1.67 Million

Explanation:

Current asset = 15 Million    

Current liabiltiy = 15 Million/3

                          = 5 Million    

Let the inventory X can be purchased with short term debt without violation

per current ratio requirement    

(15 + x)/5+x = 2.5    

       15 + x  = 12.5 + 2.5x    

            2.5 = 1.5x    

               x = $1.67 Million

Therefore, $1.67 Million inventory can Baker purchase without violating its debt agreement if their total current assets equal​ $15 million

7 0
3 years ago
Omar is responsible for marketing and marketing research for a midsized manufacturer of assemblies for the housing market. His b
Rashid [163]

Answer:

On the internet there is secondary information that is not always adequate in certain cases. As a result, a wrong decision can be provoked that would end up exposing everything that has been built over time. It is convenient to study the particular situation of the company in order to make a wise decision about this change.

Explanation:

The age of the Internet is one of the most contradictory in history. What was thought at the beginning as a benefit for humanity that would carry information and communicate to millions of people, is currently guilty that the population seems much more divided and uninformed than at any other time.

8 0
3 years ago
A few decades ago, Walmart opened stores in Germany. After a few years, it closed all of them. The shopping habits of Europeans
maks197457 [2]

Answer:

cultural differences

Explanation:

Cultural is an important factor which can help to improve businesses. A good and experience brand always takes into account the cultural difference before they introduce their products. There is a huge cultural difference between America and European countries although many brands have gained a competitive market share in both countries. Wal-Mart did not understand the cultural difference that is why it failed in Germany.

4 0
3 years ago
You and a friend go clothes shopping and find a great pair of jeans. They fit you perfectly, but they also cost $100. You are wi
Schach [20]
3. Both of you, because you both like the jeans
8 0
3 years ago
For investments, how are risk and return related? a) when the risk is low, the return is high b) when the risk is high, the retu
Inessa [10]
C: The higher the risk on the investments the higher the pay out is.
8 0
3 years ago
Read 2 more answers
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