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3 years ago

The firm should shut down if the market price is:___________.

Business

1 answer:

Georgia [21]3 years ago

5 0

Answer: D. less than $4.50.

Explanation:

In the short run, a business should shutdown if the market price is below the Average Variable costs as because at this point, only losses are being made if the company stays in action.

If price is below the variable cost, it is best to shutdown so that the company can stop incurring the variable costs and incur the fixed cost alone. The lowest Average Variable cost is $4.50 for this good and so if the price falls below $4.50, the should shutdown.

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Carla has applied for a loan. Which condition makes it likely that she will get an unsecured loan?A.She has a very good credit h

dangina [55]

Answer:

The correct answer is A

Explanation:

Unsecured loan is the kind of loan which is not attached to any kind of collateral. The assurance which is required from the lender that the person will repay the debt, which is the person creditworthiness and on the words of the person.

The unsecured loans involve the student loans as well as personal loans. And credit cards is also the another kind of unsecured credit, referred to as revolving credit, where the person borrow and repay the money monthly.

So, Carla applying for the loan, the condition which make the loan likely is that she has a good credit history, in order to get the unsecured loan.

5 0

3 years ago

Read 2 more answers

You own a portfolio that has a total value of $130,000 and a beta of 1.28. You have another $49,000 to invest and you would like

fredd [130]

Answer:βB =0.9147=beta of new investment

Explanation:

Total investment= $130,000 + $49,000= $179,000

Using

Portfolio beta(βp) = wA × βA + wB × βB

Where βp is the portfolio beta coefficient,

wA is the weight of the first investment,

βA is the beta coefficient of first investment;

wB is the weight of the second investment,

βB is the beta coefficient of second investment

but weight of investment is stock value/ total investment x 100

wA= 130,000/ 179,000X 100=72.63%

WB= 49,000/179,000 X100=27.374%

Portfolio beta(βp) = wA × βA + wB × βB

1.18=(72.63%*1.28)+(27.374% XβB )

1.18=0.9296+0.27374βB

βB i=(1.18-0.9298)/0.27374

βB =0.9147=beta of new investment

6 0

3 years ago

You purchased 200 shares of ABC stock on July 15th. On July 20th, you purchased another 100 shares and then on July 22st you pur

Mashutka [201]

Answer:

$330

Explanation:

The computation of the dividend income received as on July 31 is shown below:

where,

Total number of shares purchased is

= 100 shares + 200 shares

= 300 shares

And, the dividend per share is $1.10

So, the dividend income received is

= 300 shares × $1.10

= $330

We simply applied the above formula to determine the dividend income received

7 0

3 years ago

Carlos is a hard-working college senior. One Saturday, he decides to work nonstop until he has answered 100 practice problems fo

SVETLANKA909090 [29]

The answer is D because 4 hours working on problems are 0 hours of reading

3 0

3 years ago

Suppose that the U.S. government decides to charge cola producers a tax. Before the tax, 50 billion cases of cola were sold ever

Georgia [21]

Answer:

U.S. Tax Burden on Cola:

The amount of the tax on a case of cola is $4 per case. Of this amount, the burden that falls on consumers is $1 per case, and the burden that falls on producers is ___$3______ per case.

The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers.

a. True

b. False

Explanation:

The tax burden on consumers, which is represented by the difference in the price of cola from $5 to $6 per unit is $1 ($6 - $5). However, the cash received by producers reduced by $3 from $5 to $2. This shows that the total tax burden on both consumers and producers is $4 ($1 + $3).

This represents a total tax burden of $4 or about 67% based on the new selling price of cola or 80% based on the old selling price of cola.

"The effect of the tax on the quantity sold would have been larger if the tax had been levied on consumers alone. This because the price of cola would have increased to $9 per unit. Since the demand for cola in this instance is elastic, this change in price would have caused a more than 80% change in the quantity demanded.

4 0

3 years ago