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docker41 [41]
3 years ago
10

Explain in your own words why in the short run a firm may continue to produce even at a loss provided the price is more than the

average variable cost. Also, provide an example of when a firm might face this decision.
Business
1 answer:
GenaCL600 [577]3 years ago
8 0

Answer: The firms are faced with two options, the first is covering variable cost, which they can consider in a short run, which they can pay some of their fixed cost. If they shut down completely they would pay all their fixed costs.

Explanation:

The firms are faced with two options, the first is covering variable cost, which they can consider in a short run, which they can pay some of their fixed cost. Alternatively, if they shut down completely they would pay all their fixed costs. As long as the operating cost is not much, they would keep working.

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Ink Inc. has a capital structure consisting of 25 percent debt and 75 percent common equity financing. The company has $800 mill
Margarita [4]

Answer:

$640 million

Explanation:

The computation of maximum amount of new financing is shown below:-

New financing from equity = $800 million × (1 - 40%)

= $480 million

New financing from debt = $480 million ÷ 75% × 25%

= $160 million

Now the maximum amount of new financing is

= $480 million + $160 million

= $640 million

Hence, the maximum amount of new financing is $640 million

5 0
3 years ago
The likelihood that a decision maker will ever receive a payoff precisely equal to the EMV when making any one decision is: a. L
djyliett [7]

Answer: low (near 0%)

Explanation:

The expected monetary value(EMV) simply refers to the amount of money that an economic agent can expect to make based on a particular decision that's made.

It should be noted that the likelihood that a decision maker will be able to receive a payoff that is exactly as thesame as the EMV when a decision is being made will be near to zero as it's very low that it'll happen.

4 0
3 years ago
What is one downside to environmental-protection laws?
iVinArrow [24]

Answer: it’s D

Explanation:

7 0
3 years ago
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1 points Item 5Item 5 1 points Sam, Alfredo, and Juan want to start a small U.S. business. Juan will fund the venture but wants
8090 [49]

Limited partnership form of business entity should these individuals adopt.

Explanation:

A Limited Partnership is a common partner that has unlimited personal liability to the company's assets and commitments and a joint partner that has limited liability but does not share in the management process. a Limited Partnership is a limited partner.

Most states allow a professional license in a specified area for every LLP participant. As a result, relationships with doctors, judges, accountants, engineers, financial advisors certified, vet and business owners typically include lLPs. Currently attorneys and accountants are approved for LLPs in California.

8 0
3 years ago
Bond funds: a) Will lose all value if a single bond defaults b) Are investment bargains because their price is so low c) Are ris
Vsevolod [243]

Answer:

Spread the risk of individual bonds by collectively owning more and less-risky bonds, with higher and lower rates of return

Explanation:

A bond fund is a pooled investment vehicle that invests in various types of bonds. the types of bonds invested in includes cooperate bonds, government bonds and municipal bonds.

The primary objective of bond funds is to generate revenue for investors

Because bond fund is an aggregation of various types of bonds, the risk of the bond fund is lower than the risk of holding any corporate bonds. This is because risks are spread.

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3 years ago
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