1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Free_Kalibri [48]
3 years ago
11

The Pampered Pet Shop operates in a perfectly competitive industry and hires you as an economic consultant. The firm is currentl

y producing at a point where market price equals its marginal cost. Its market price is less than its average variable cost. You advise the firm to:_____.
a. raise its price until it breaks even.
b. lower it's price so it can sell more units of output.
c. cease production immediately, because it is incurring a loss.
d. produce in the short run to minimize its loss, but exit the industry in the long run.
Business
2 answers:
Vladimir79 [104]3 years ago
8 0

Answer: cease production immediately, because it is incurring a loss

Explanation:

A perfectly competitive industry is an industry whereby firms make similar products, and there are many firms and customers.

Since from the scenario, the market price is less than its average variable cost, it is advisable for the firm to stop producing. This is because the firm isn't covering its variable cost, therefore it's running at a loss.

Sphinxa [80]3 years ago
5 0

Answer:

c. cease production immediately, because it is incurring a loss.

Explanation:

When a business engages in production it looks to make profit. That is for the production price to be higher than cost incurred in producing the good.

However when the price is lower than the average variable cost as is indicated in the scenario then the firm needs to shut down production in the short term.

Factors that will adversely affect a firm in the short term are price, average total cost, and average variable cost.

Once price is less than average total cost or average variable cost it is better to stop production.

As they are incurring an economic loss

You might be interested in
To have a​ monopoly, barriers to entering the market must be so high that no other firms can enter. do network externalites crea
rewona [7]
The answer is <span>d. create barriers to entry because if a firm can attract enough customers initially, it can attract additional customers as its product's value increases by more people using it, which attracts even more customer.
This happen because as more and more cutomer use the products, the potential customers will see the product as trust worthy because they indirectly obtain other customers' approval, which make them more likely to try and use the product.</span>
7 0
3 years ago
for brainliest and 100 points !!!!the unemployment rate is 5%. there are 139179 people working in the country. calculate the lab
lukranit [14]

Answer:

I think the answer is 2783580

5 0
3 years ago
Read 2 more answers
After months of thinking about the new laptop she heard about from a friend, anna finally decides it’s time to buy it. In what s
inna [77]

The stage of the customer journey of Anna is the Purchase phase.

Awareness: the customer becomes familiar with the brand via channels, consisting of advertising and word-of-mouth. Consideration: realizing that they have a need that must be met, the customer actively considers whether or not to buy the product or service on offer. Purchase: the customer makes the purchase.

Customer's journey. is defined as the active research process someone goes through leading up to a purchase. It is called a journey because each one of your prospective customers will be at different points in their journey towards a purchase.

Learn more about the Purchase phase here brainly.com/question/27975123

#SPJ4

7 0
2 years ago
In rich countries such as the United States, changes in the level of taxation have little impact on the incentives of entreprene
GREYUIT [131]
False. Higher levels of taxation will reduce spending, which will lead to a slower economy and less innovation.
4 0
3 years ago
Job specifications can be defined as: a. planned sequences of jobs through which employees may advance within an organization. b
Alona [7]

Answer:

Option d would be the correct approach.

Explanation:

  • The organized database of the important tasks required in carrying out a task that has been extrapolated from such a job description and used in job classification and assessment and personnel policies as well as positioning.
  • This usually includes tasks, intent, obligations, nature including employment conditions of a position including the description of the position, as well as the identity or description of the individual the input data to.

Many examples do not apply to the subject being discussed. So option d is indeed the right one.

4 0
4 years ago
Other questions:
  • Knowledge management is most popular among businesses in
    6·1 answer
  • What is the difference between streak and color?
    7·2 answers
  • Can someone try to sub to me on yt mine is Dgraves79Ex i did not make any viedos yet.
    11·2 answers
  • What is covered with liability insurance
    9·1 answer
  • Bennett has entered into a contract with the federal government to design a computer simulation model for training helicopter pi
    14·1 answer
  • Creative quilts studio sells hundreds of colors and types of fabric and thread. to price its inventory, the owners add 50 percen
    8·1 answer
  • GDP is defined as the a. value of all goods and services produced within a country in a given period of time. b. value of all go
    11·1 answer
  • Pirates Incorporated had the following balances at the beginning of September.
    12·1 answer
  • Linda Day George Company had bonds outstanding with a maturity value of $300,000. On April 30, 2020, when these bonds had an una
    5·1 answer
  • Plz help if ur good at taxes
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!