Answer:
keep producing in the short run but exit the industry or go out of business in the long run
Explanation:
A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
A firm should shut down in the short run if price is less than average variable cost. But since the diner's price is greater than average variable cost, it should continue production.
A firm should exit the industry in the long run if price is less than average total cost. the diner's price is less than average total cost, so it should shut down in the long run
Answer:
Go in for a traditional shirt-jeans outfit and pair it with black formal shoes. A plaid shirt, pair of blue jeans and black dress shoes is how you'll want to rock it! Get that macho look right by wearing a leather jacket over a formal shirt and jeans. Your shoes will complement the jacket perfectly.
Explanation:
Answer:
Total overhead= $137,210
Explanation:
<u>First, we need to deduct the depreciation expense from the fixed overhead. Depreciation is not a cash cost.</u>
<u></u>
Fixed overhead= 117,440 - 10,610= $106,830
<u>Now, the cash disbursement for total overhead:</u>
Variable overhead= 3.1*9,800= 30,380
Fixed overhead= 106,830
Total overhead= $137,210
Answer:
17,080 ounces.
Explanation:
Given that,
Budgeted production = 8,500
Raw material required per unit = 2 ounces
Opening inventory = 3,400
Direct material to be purchased:
= (Budgeted production × Raw material required per unit) + Closing inventory - Opening inventory
= (8,500 × 2 ounces) + (20% × 8,700 × 2) - 3,400
= 17,000 + 3,480 - 3,400
= 17,080 ounces.
