Answer:
(a) Continue to operate.
(b) Shut down
(c) Continue to operate.
Explanation:
(a) It is given that the firm will experiencing a loss of $5000. Therefore, it means that a loss of $5,000 is borne by the producer of the fixed cost. It is a portion of fixed cost but the firm will continue to operate in the short run if it covers all of the variable cost in the short run.
(b) The firms in the long run try to cover all of its variable and fixed cost. If this situation persists then this firm unable to cover its all costs. Therefore, the firm will shut down its operation and go out of the business.
(c) Now, if the firm’s fixed costs are $2,000.
There is a reduction in the fixed cost by $6,000
Previously firm able to cover = $8,000 - $5,000
= $3,000
It means that it cover its fixed cost and hence, the firm will operate in both short run and long run.
Answer:
Explanation:
a)
Year percentage increase
2011 21.21162
2012 14.35054
2013 20.62696
b) Assuming C1 is the domestic currency, an increase in E will cause price of C2 in term of C1 to; Decline
c) If the value of e decrease, given that E is increasing, then Country Y would be experiencing a lower rate of inflation compared to Country X
d) if foreign goods are relatively less expensive compared to the domestic goods and assuming that the nominal exchange rate of the currencies is equity, then there is disparity in the real exchange rate.
Answer:
Which of the following statements about brand names is true?
- 1. Brand names give the seller an incentive to provide consistently high-quality products and services in order to protect the reputation of the brand.
Options 2 and 3 are wrong:
2. Brand names are always economically wasteful since they dupe consumers into buying more expensive goods and services that are no different from generic versions.
⇒ FALSE, just because a product has a certain brand it doesn't make it better and therefore more expensive. There are brands that consumers associate with luxury and expensive products, while there are other brands that consumers recognize while not necessarily being more expensive than others, e.g Coke.
3. It is always rational to prefer brand names over generic substitutes.
⇒ FALSE, it depends on the type of product. Generic medicines as just as effective as banded medicines.
Read the following example and determine whether it illustrates a common critique or defense of advertising.
- This illustrates a common <u>CRITIQUE</u> of advertising. This ad targets young people that are susceptible to believing exaggerated or materialistic aspects of a product that cannot be proven correct or wrong.
Answer:
Using the ''You'' view means that the audience is made the subject of the correspondence. This makes the message more effective as the audience will see it from their perspective.
You will issued a new chip-enabled credit cards to replace expired or lost cards and prevent increasingly costly pay-outs resulting from fraud.
With a new schedule of low-cost, any-day flights, you can now fly to Hawaii whenever you want.
Should you wish to rent power equipment, you must demonstrate your proficiency in its use.
Employees are requested to complete the attached online survey by April 1 to enable the development of master schedule to efficiently manage your summer vacations.
Your content can now be shared, liked and subscribed to via the new free app, Fan Boosters.
You can now save costs on the location of your training class by having a customized class for your employees right in your own building.
You can now only receive store credit for returned merchandise.
Answer:
$3,266
Explanation:
First we must calculate the total amount received as bond premium:
$96,140 - $92,000 = $4,140
This should be amortized over 10 periods (= 5 years x 2 semiannual payments), so we must amortize $414 per period.
The coupon that the company pays = $92,000 x 8% x 1/2 = $3,680
So the interest to be recognized is = $3,680 - $414 = $3,266
