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If the market price is above or equal to the average cost, but below the average cost the firm should keep producing in the run

tangare [24]

If the market price is above or equal to the average variable cost, but below the average total cost the firm should keep producing in the run even though it does so at a loss.

<h3>When should a firm shut down production?</h3>

A firm should continue production in the short run if the price is above the average variable cost even if price is below the average total cost. The short run is a period when at least one or more factors of production are fixed.

To learn more about when a firm should shut down, please check: brainly.com/question/13034691

6 0

2 years ago

You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dolla

never [62]

Answer:

$41,667

Explanation:

First and foremost, in order to profit from the arbitrage opportunity, we need to first of all convert dollars to euro using the exchange rate below

$1.60 = €1.00

$1,000,000 in euros= $1,000,000*€1.00/$1.60=€625,000

Next we convert the euros to pounds using the rate quoted by the bank below:

£1.00 = €1.20

€625,000 in pounds=€625,000*£1.00/€1.20=£ 520,833.33

Lastly, we convert the pounds sterling back to dollars using the below exchange rate

$2.00 = £1.00

£ 520,833.33 in dollars=£ 520,833.33*$2/£1.00=$ 1,041,666.67

Profit from the arbitrage=$ 1,041,666.67 -$1,000,000.00

Profit from the arbitrage=$41,667(rounded to a whole dollar amount)

8 0

3 years ago

Bryan and Cody each contributed $120,000 to the newly formed BC Partnership in exchange for a 50% interest. The partnership used

den301095 [7]

Answer:

the answer is a

Explanation:

Answer a) Particulars Bryan Cody Particulars Bryan Cody 1st Year To, Loss In 1st year 40,000.00 40,000.00 By , Partners Capital 120,000.00 120,000.00 To, Depreciation (80:20) 28,800.00 7,200.00 To , balance c/d 51,200.00 72,800.00 120,000.00 120,000.00 120,000.00 120,000.00 To, Depreciation (80:20) 46,080.00 11,520.00 By , balance c/d 51,200.00 72,800.00 By, Profit in 2 nd year 20,000.00 20,000.00 To , balance c/d 25,120.00 81,280.00 71,200.00 92,800.00 71,200.00 92,800.00 Note : No losses have been suspended as in both the years both...

7 0

3 years ago

Mark Achin sells 3,600 electric motors each year. The cost of these is $200 each, and demand is constant throughout the year. Th

netineya [11]

Answer:

A) 100

Explanation:

total sales 3,600 units

cost per unit $200

cost of placing order $40

holding cost $20 per year

working days 360 per year

lead time 5 days

If Mark orders 200 units each time, his average inventory ?

daily sales = total sales / working days = 3,600 / 360 = 10 units per day

number of orders per year = 3,600 / 200 = 18

Mark places one order every = 360 days / 18 orders = 20 days

average inventory = (200 units / 20 days) x 10 days = 100

I assume that mark has some type of safety stock that allows him to hold enough inventory to cover for the 5 day lead time.

8 0

3 years ago

Where does the money you pay for the FICA tax on your paycheck go?

strojnjashka [21]

Answer:

see below

Explanation:

Social security and medicare taxes form the Federal Insurance Contributions Act (FICA) tax. These taxes are deducted from both the employer and employee per paycheck.

Social security tax forms the bulk of the FICA tax. The tax revenue collected as social security tax funds the United States government Social Security Trusts. The trusts are programs managed by the Social Security administration and include

Retirement benefits
Survivor benefits
Disability benefits

Medicare tax revenue funds Federal government medicare programs. This program caters to older American health care costs. The government's general revenue also finances health care. Medicare or health services in the USA are not solely dependent on medicare tax.

4 0

3 years ago