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adriannacomrosenbark
11.01.2020 •
Business
Megatron is a competitive firm operating under the following conditions: price of output is $15, the profit maximizing level of output is 40,000 units, and the total cost (full economic cost) of producing 40,000 units is $650,000. the firm's only fixed factor of production is as $750,000 stock of capital (a building). if the interest rate available on a comparable risks is 8 percent, should this firm shut down immediately in the short run? explain your answer.
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Ответ:
Firm should be shut down in short run
Explanation:
We have given price of output = $15
Total economic cost = $650000
Total number of units for maximizing profit level = 40000
So average economic cost![=\frac{650000}{40000}=$16.25](/tpl/images/0450/2590/195ce.png)
As the average economic cost is greater than price of the output
So firm should be shut down in short run
Answer will be firm should be shut down in short run
Ответ:
Management styles are important because they effect how well a business runs and operates. Good management, teamwork, and communication make a positive work experience for the employees and a good experience for the customer. Now say that the management has bad communication and teamwork. The business will not run smoothly and customers will be less likely to return, long story short good management= good business and good business= returning customers and returning customers= profit.