How do fixed costs play a role in your analysis

Assignment Help Business Economics

Reference no: EM13150989

Say you are the manager of a perfectly competitive firm selling a product. Your business is making a loss because total revenue is less than total costs. What would you do--shut down or continue to operate? Use hypothetical numbers to explain. Information you need to provide include--state the product you are selling, the price of the product, the quantity of the product you produce, fixed costs, total cost, figure out total revenue, total and average variable costs. Then go ahead and make your decision. Explain carefully why it makes better sense to shut down rather than continue to operate or to continue to operate rather than shut down, as the case may be. How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?

Reference no: EM13150989

Questions Cloud

Conditional probability that student has work experience : Suppose that you are told that this student has at least three years of work experience. What is the conditional probability that this student has at least for years of work experience.

Managerial reporting of standard variance basics : Question: Should this managerial reporting of standard variance practice be permitted to continue? If not why and what affects does this accounting practice have on the company and its investors?

Draw a dashed line indicating : Draw three water molecules as they would tend to exist near each other in nature.

What are the names of other firms in this industry : What market structure would this industry fall under? What are the names of other firms in this industry? Is it monopolistic competition, oligopoly, monopoly, or perfect competition?

How do fixed costs play a role in your analysis : How do fixed costs play a role in your analysis? What is the difference between shutting down and going out of business?

Which column heading is the most important or salient : What will a close out sale at year end from one of a company's main suppliers do to the company's balance sheet?What will the event noted above do to inventory and payable ratios in comparison to prior years? Is this a concern? To who?

Managerial reporting of standard variance : Should this managerial reporting of standard variance practice be permitted to continue.

Explain an infant ibuprofen suspension contains : The recommended dose is 10 body weight. How many of this suspension should be given to an infant weighing 16

An individual bank has little ability to expand : Explain the statement that "an individual bank has little ability to expand the money supply unless all the other banks expand in step". Does that simply because a conduct of one single bank cannot change the aggregate money supply?

User Account

All Pages