Business, 12.11.2019 00:31 moneymaleia9264
If a purely competitive firm is currently facing a situation where the price of its product is lower than the average variable cost, but it believes that the market demand for its product will increase soon, then
a) the firm will shut down in the short run and leave the industry in the long un.
b) the firm will shut down in the short run, but stay in the industry in the long run if it expects the product price to rise high enough soon.
c) the firm will produce a low level of output in the short run but expand its plant in the long run as demand increases.
d) the firm will produce a low level of output in the short run and leave the industry in the long run.
Answers: 3
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You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. the energy efficient model sells for $700 and will save you $45 at the end of each of the next five years in electricity costs. the standard model has features similar to the energy efficient model but provides no future saving in electricity costs. it is priced at only $500. assuming your opportunity cost of funds is 6 percent, which refrigerator should you purchase
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Which of the following best explains why online retail companies have an advantage over regular stores? a. their employees make less money because they mostly perform unskilled tasks. b. they are able to keep distribution costs low by negotiating deals with shipping companies. c. their transactions require expensive state-of-the-art technological devices. d. they have a larger number of potential customers because people anywhere can buy from them.
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