A firm will shut down if price falls below what value?

Answers

Answer 1

A firm will shut down if price falls below average variable constant.

What is firm?

Firm is defined as a for-profit company that offers expert services, including legal or accountancy services, typically organized as a partnership. According to the philosophy of the firm, businesses exist to maximize profits. One of the three essential components in the money's continuous circulation throughout the economy are businesses.

When prices or average revenues (AR) at the level of output that maximizes profits fall below average variable costs (AVC), a shutdown occurs. Continuing production will result in more variable costs, but it won't bring in enough money to pay for them.

Thus, a firm will shut down if price falls below average variable constant.

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Related Questions

In communication feedback is a
A) defense mechanism
B) negative remark
C) return message
D) type of interference

Answers

In communication feedback is a return message. The correct option is C.

What is communication technology?

Communication technology is the use of technology to transfer messages (information) between people and/or machines. This information processing can assist people in making decisions, solving problems, and controlling machines.

Communication is influenced by technology because it allows for close collaboration with clients who may be on the other side of the world.

In communication, feedback is defined as the receiver's reaction to the message that has been delivered to it. A basic communication process consists of three essential components.

Thus, the correct option is C.

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Which of the following statements is true about the types of sources you may use in a research project?
A. You should avoid using sources from out-of-date media
B. You should only use academic sources that are fully reviewed
C. You should avoid using social media due to unreliability
D. You should use any type of source if it’s carefully considered

Answers

Of the options given, the statement that is true about the types of sources you may use in a research project is: ". You should only use academic sources that are fully reviewed" (Option B). This is because they are credible sources.

What are the best sources of data for Academic Research?

Among the reputable sources of knowledge are books produced by writers with a respectable background and study on the issue, peer-reviewed scientific journals, papers released by government agencies, and reports published by certified organizations.

Academic journals are also beneficial. These are the most recent academic sources. They are more regularly released than books and contain cutting-edge research. Books: These are an excellent resource to utilize because they are often authored by specialists and give a thorough overview and study of a certain topic.

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Which of the following are factors to consider when evaluating how authorative a source is?
A. The author’s credentials
B. The source’s topic
C. The work’s length
D. The work’s date

Answers

When evaluating sources for reliability, which of the following is not a key issue is the city where the source was published.

What is publishing?

The right to publish an authors works generally on the basis of the citation. The city where the source was published is not a key issue of evaluating sources for reliability, which of the following is not a key issue of the sources of the evaluation as the main issues are of credentials, author,publisher, and the sources.

The city where the source was published is not a key issue of evaluating sources for reliability, which of the following is not a key issue of the sources of the evaluation.

Therefore, When evaluating sources for reliability, which of the following is not a key issue is the city where the source was published.

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Aaron is researching how many people live in his city compared to cities outside his state. Which of the following areas should Arron consult?
A. United States Census Bureau
B. Social Media
C. Periodical or Trade Journal
D. Encyclopedia

Answers

The source that often provides good general information on a topic to guide you in forming a research question is encylopedia. Thus, option C is correct.

What is printed encyclopedias?

The effect that electronic encyclopedias have on Encyclopedia Britannica was it served as a superior product to heavy, bulky, and expensive printed encyclopedias.

With the enhancement in technology the Britannica encyclopedia was launched that reduced the user to deal with the bulky books and difficult to find the content issues.

Therefore, The source that often provides good general information on a topic to guide you in forming a research question is encylopedia. Thus, option C is correct.

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