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When price is greater than average variable cost but less than average total cost at the profit-maximizing level of output, a firm should continue to produce the level of output at which marginal revenue equals marginal cost. increase output to minimize its losses. reduce output to the level at which price equals average variable cost to minimize its losses. shut down to minimize its losses.
What fact might lead the manager to be concerned? If true, what do you think is likely to happen to the price of products G.R. Dry Foods sells?
As the employer who wants to reduce the production cost during the economic recession, he or she could choose to (1) lay off some workers without changing wages or (2) keep all workers but cut wages for all.
Assume also that South Africa is a net importer of maize and imports maize mostly from the US. The FOB at US Gulf port is US$350 per tonne (1 tonne =1000 kg). Assume freight, insurance and unloading (FIU) cost at Durban is 150 Rands per tonne.
Some fields have large enough quantities of both oil and natural gas that coordination must be achieved for the production of both, rather than oil a in our examples. Will fields with both oil and gas have greater difficulties in unitization.
10 annual purchases of $1000 worth of common stock. The stock paid no dividends. Then for 4 years all the stock sold for $28,000. What interest rate obtained on the investment?
What would each of the following events do to the terms of trade of the importing country and the exporting country, other things being equal?
Inside the corporation there are ...... systems that motivate individuals and teams to make the most efficient decisions over product lines.A job in sales - such as a sales representative for an agricultural chemical company usually represents
those polices were predicated on 1930s Keynesian assumptions that economic recoveries always run out of steam and at certain points need artificial stimulation of demand and fine-tuning to keep them running at acceptable levels .The evidince of th..
Explain how scarcity and choice are related. Economic theory says that a rise in the price of a good will cause people to buy less of it. If the price of meat increases and John Doe buys more meat, has the theory been refuted
Describe the impact of the recent economic crisis in the U.S. on the automobile industry, with special reference to the operating costs and auto sales in the industry.
Assume you are a broker at an investment advisory company. You and your client disagree on investment decisions he wants you to make decision on his behalf
Based on their public statements, many policy makers would support government regulation of oil markets in order to compensate for the exhaustibility of oil as a resource. Is this reasonable from an economic stand point.
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