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3 years ago

What should the firm do if there is no possible output where the price would at least be equal to average variable costs

Business

1 answer:

garri49 [273]3 years ago

3 0

Answer:

Since the average variable cost curve lies below the average total cost curve, this implies that the average variable cost is the lowest price at which the producer can sell.

If there is no possible output where the price would be at least equal to the average variable costs, the firm should cease production, because it is not going to recover its costs, not to talk about making a profit.

Explanation:

A firm's average variable cost is the total variable cost divided by the total output. For example, if the total variable cost for a particular product is $4,500 with a total output of 450 units, then the average variable cost is $10 ($4,500/450).

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Which of the following statements regarding leadership is true?

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5) Nonsanctioned leadership is as important as formal influence.

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Answer:

$6.91 per direct labor hour

Explanation:

Given that,

Estimated direct labor = $2,640,000

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Therefore,

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= $1,520,000 ÷ 220,000 hours

= $6.91 per direct labor hour

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3 years ago

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4 years ago

On October 28, 2021, a company committed to a plan to sell a division that qualified as a component of the entity according to G

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Answer:

The company report as loss on discontinued operations in its 2021 income statement is $1,990,000

Explanation:

The computation of the loss on discontinued operations is shown below:

= Division loss from operations

= $1,990,000

As no impairment loss is there because there is a gain as fair value is more than the book value.

For calculating the loss on discontinued operations, the gain should not be considered. So, only Division loss from operations is relevant and hence taken in the computation part

The gain would be

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4 years ago

Your friend has just started a savings account that is currently paying 5% interest. If inflation is expected to be 7% this next

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Answer:

If inflation is expected to be 7% this next year, your friend will be earning a -2% interest.

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Real interest rate is the interest rate that takes inflation into account. To calculate for the real interest rate, we have:

Real interest rate = nominal interest rate - inflation rate

Real interest rate = 5% - 7%

Real interest rate = -2%

In this case, the borrower will get paid and your friend will be the one penalized.

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