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d1i1m1o1n [39]
3 years ago
8

American Idle sells hammocks in a perfectly competitive market. This year, the price of hammocks has fallen to $24, and Simon Co

wbell, the manager of American Idle, is trying to decide what to do. He discovers that his average variable cost (AVC) is $25, average total cost (ATC) is $30, and marginal cost is $24 and upward sloping. What should he do?
Business
1 answer:
AfilCa [17]3 years ago
3 0

Answer:

Shut down as P < AVC.

Explanation:

Given that,

Selling price = $24

Average variable cost = $25

Average total cost (ATC) = $30

Marginal cost = $24

He should shut down because the price received by him for the product is less than average variable cost. He should shut down its operations because he won't be able cover the average variable cost associated with the production of the product.

Price = $24 which is less than average variable cost of $25.

If he will be able to cover its variable cost then he will continue operating in this market condition.

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Employees at Border Bookstores, a chain of bookstores, recently held a strike to force their employer to negotiate a labor contr
vladimir2022 [97]

The question is incomplete, it lacks options.

A) Norris La Guardia Act

B) National Labor Relations Act

C) Occupational Safety and Health Act

D) Fair Labor Standard Act

Answer:

National Labor Relations Act

Explanation:

The National Labor Relations Act was enacted in 1935. It is also known as the Wagner Act. This law enacted to enable employees in various organizations to organize different forms of trade union and collectively bargain with their employers.

The National Labor Relation Acts enables employees to bargain for an increase in salary, better working conditions such a provision of safety equipments for workers in a work environment.

6 0
3 years ago
Read 2 more answers
The price of digital cameras fell because of improvements in production technology. As a result, the demand for non-digital came
zavuch27 [327]

Answer:

The answer is: B) The statement is false. A decrease in the price of digital cameras would decrease the demand for non-digital cameras, but a decrease in the price of non-digital cameras would not cause the demand for non-digital cameras to decrease.

Explanation:

Suppose we are not currently living in 2019, instead we are back 12 years to 2007 (before the iPhone). Back then , digital cameras were still used by common "unprofessional" users. Digital cameras were an improvement compared to non-digital cameras, so the price of non-digital cameras were much lower than their digital counterparts.

If the price of digital cameras decreased, then the price of non-digital cameras would decrease also. For example, if luxury car companies like Mercedes Benz started selling sedan cars for $20,000, Ford and Chevrolet would be forced to lower the price of their cars since they wouldn't be able to compete with MB at the same price.

But a decrease in the price of non-digital cameras would never decrease their demand. Something else would have caused that decrease. Probably digital cameras became so cheap that everyone could afford one and since they were so much better than non-digital cameras, people simply stopped buying non-digital cameras.  

8 0
3 years ago
KRD Supplies Corporation provided the following information for the year:Beginning Balance—Work-in-Process Inventory $24,000Endi
liberstina [14]

Answer:

The amount of the manufacturing overhead costs is $314,000

Explanation:

The computation of the manufacturing overhead cost is shown below:

= Indirect Labor  + Depreciation on Factory Plant and Equipment + Plant Utilities and Insurance

= $18,000 + $24,000 + $272,000

= $314,000

The manufacturing overhead cost includes only indirect costs other than direct costs like direct labor, direct material, etc. Because of this, we do not considered it

8 0
3 years ago
Consider the market for smartphones. Explain whether the following events would cause an increase or a decrease in supply or an
kumpel [21]

Answer:1. Increase in supply; increase; decrease

2. Decrease in supply; decrease; increase

3. Increase in supply; increase; decrease

4. Decrease in quantity supplied; decrease; decrease

Explanation:

3 0
3 years ago
The length=2.7m and breath=85cm find the perimeter and area of rectangle​
lesya [120]

Answer:

2..?

Explanation:

I'm bad at finding area lol

8 0
3 years ago
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