Firm that is operating at loss has two options

Assignment Help Business Economics

Reference no: EM131164569

In the short run, a firm that is operating at a loss has two options. These options are

a. to shut down temporarily or continue to produce.

b. to reduce output or reduce its variable costs.

c. to go out of business or declare bankruptcy.

d. to adopt new technology or change the size of its physical plant.

Reference no: EM131164569

Questions Cloud

Practical use of optimization models and linear programming : In a couple of paragraphs describe the practical use of optimization models and linear programming. Where do you think it is best applied? What industries would be beneficial to use optimization models?

What is the expected value of the project : Ms. Lee Ding is considering whether the following capitol project should be undertaken. Its life is 6 years; it has a 6% salvage value; and her firm uses a 12% MARR. What is the probability of it costing $300,000? What is the probability of the net r..

Possibility frontier exhibiting increasing opportunity cost : Cattletown steakhouse is a restaurant known for its steak meal and hamburger basket. Draw a graph showing a production possibility frontier exhibiting increasing opportunity costs.

Monetarism’s view of fiscal policy : Monetarism’s view of fiscal policy is: Monetarism’s view of income distribution and governmental inefficiency would lead the reader to conclude that: Monetarism’s view of monopoly leads the reader to conclude that he believes: Friedman’s view of soc..

Firm that is operating at loss has two options : In the short run, a firm that is operating at a loss has two options.

Derive equation for slope of utilities possibilities curve : Norton and Ralph have a utility possibility frontier that is given by the following equation, UR + (UN)^2 = 100. Plot the utilities possibilities frontier on a graph with UR on the vertical axis and UN on the horizontal axis. Derive an equation for t..

Town council issues permits for trapping lobsters : Horsehead, Massachusetts lies on a bay inhabited by lobsters. The town council issues permits for trapping lobsters and is trying to determine how many permits to issue. Graph the marginal revenue and marginal cost curves for operating a boat. Suppos..

Calculate number landings that maximizes airport profits : An airport is located on a tract of land owned by a housing developer. The developer would like to build houses but noise from the airport reduces the value of the land. The airport’s total profits are ΠA(x) = 48x − x^2 where x is the number of airpo..

Explain the continuum of precariousness : Draw and explain the continuum of precariousness that we developed in class. Explain why this diagram may only apply to certain people. What would the continuum look like for a different group of people? Part-time employment may correspond to life- s..

User Account

All Pages