This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Evaluate the following statement. If a firm is suffering economic losses then the sensible thing to ... (Read 33 times)

eruditmonkey@yahoo.com

  • Hero Member
  • *****
  • Posts: 546
on: Jun 29, 2018
Evaluate the following statement. If a firm is suffering economic losses then the sensible thing to do is to shut down temporarily.
 
  What will be an ideal response?

Question 2

Using Scenario 1 what would happen to your budget constraint if you came up with a study technique that allowed you to earn 3 points for every hour spent studying economics and still only 2 points for every hour spent studying French? What has
 
  happened to the relative price of one hour of studying French?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

taylorsonier

  • Sr. Member
  • ****
  • Posts: 377
Reply #1 on: Jun 29, 2018
Answer to Question 1

Not necessarily. A firm should only shut down if it is not earning an operating profit. If a firm is receiving less total revenue than its total variable cost then this advice would make sense.

Answer to Question 2

The budget constraint would pivot out. The relative price of studying French would actually rise since every hour you spend studying French is costing your 3 points towards your economics grade rather than the previous 2 points.


eruditmonkey@yahoo.com

  • Member
  • Posts: 546
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)

komodo7

  • Member
  • Posts: 322
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

Most fungi that pathogenically affect humans live in soil. If a person is not healthy, has an open wound, or is immunocompromised, a fungal infection can be very aggressive.

Did you know?

The senior population grows every year. Seniors older than 65 years of age now comprise more than 13% of the total population. However, women outlive men. In the 85-and-over age group, there are only 45 men to every 100 women.

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Liver spots have nothing whatsoever to do with the liver. They are a type of freckles commonly seen in older adults who have been out in the sun without sufficient sunscreen.

Did you know?

Your skin wrinkles if you stay in the bathtub a long time because the outermost layer of skin (which consists of dead keratin) swells when it absorbs water. It is tightly attached to the skin below it, so it compensates for the increased area by wrinkling. This happens to the hands and feet because they have the thickest layer of dead keratin cells.

Economic and Social Development Economic and Social Development
economic question economic question
economic question economic question
economic question economic question
economic question economic question
economic question economic question
Video: Net filtration pressure and lymph formation, edema & blood velocity

For a complete list of videos, visit our video library