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.
C. A Novation
In contract law, a novation is the cancellation of one contract and replacing it with another contract.
Answer:
A firm’s ethical responsibilities go beyond its legal responsibilities.
Explanation:
Answer:
That two projects are not mutually exclusive means the firm can implement both projects. They should run both because they both have returns exceeding the cost of capital.
Explanation:
B. Participative management and empowerment