Beneath referenced pointers show that organization arranged the liquidation for recent years or something like that.
The way that there had been no interest in R&D for recent years which more likely than not brought about noteworthy cost putting something aside for the organization.
BBB bought expanded size of stock on layaway from providers in recent years which is a warning.
Indeed, even without bringing about any R&D cost for recent years, CFO of BBB moved toward the bank to expand the credit line of the organization and utilized all credit line without legitimate desk work.
CFO erroneously guaranteed the brokers about new product offering so as to look for advances/increment credit line.
Indeed, even with diminished deals, organization was indicating lower supply of stock. They more likely than not been offering the stock at cost to outsider or shrouded it at an undisclosed area to dupe the providers.
With no interest in R&D and declining business possibilities, organization couldn't have given new offers for subsidizing
Answer 2.
Yes, even if it is a fraudulent filing for bankruptcy, BBB organization despite everything can select to petition for financial protection or BBB can close the business through and through and escape with the reserve funds and continues from the offer of the stock. Indeed, even leasers and providers reserve the option to petition for automatic insolvency against the BBB in the event that BBB doesn't seek financial protection.
It thoroughly relies upon the BBB Company, in the event that it selects to declare financial insolvency under section 7, or 11 of the liquidation code. Be that as it may, it is just under section 11 liquidation procedures of the chapter 11 court it very well may be set up that BBB's aim and untrustworthy strategic policies establishes to insolvency misrepresentation.
Compared to a purely competitive firm in long-run equilibrium, the monopolistic competitor has a higher price and lower output.
<h3>When a monopolistic competitive firm is in long-run equilibrium?</h3>
Long Run Monopolistic Competition Equilibrium: Over the long run, a company in a market with the monopolistic competition will produce several items at the point where the long-run marginal cost (LRMC) curve crosses the marginal revenue curve (MR). Where the quantity produced lies on the average revenue (AR) curve will determine the pricing.
<h3>What ultimately transpires to a monopolistic rival?</h3>
Long-term economic gains or losses in monopolistic competition will be removed by entry or leave, leaving firms with no economic gains. There will be some excess capacity in a monopolistically competitive business; this could be seen as the price paid for the variety of products that this market structure brings about.
A country has a comparative advantage in producing a commodity if the opportunity cost of producing that good is lesser in that country as compared to the other country.
From the information given in the question, it is clear that Alphaland has a comparative advantage in axes and Betaville has a comparative advantage in batons.
Hence, Alphaland will trade axes for batons only if the price of batons is lower than the cost of producing it in Alphaland. So that there is a possibility mutually beneficial trade.
