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Author Question: Suppose a firm with the usual U-shaped cost curves is producing a level of output such that its ... (Read 122 times)

lingual

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Question 1

An example of debt financing for any form of business organization is
◦ borrowing from a bank.
◦ buying back previously issued stock.
◦ issuing new stock.
◦ using undistributed profits.
◦ buying back bonds.

Question 2

Suppose a firm with the usual U-shaped cost curves is producing a level of output such that its short run costs are as follows:
 ATC = $0.37 per unit
 AVC = $0.32 per unit
 AFC = $0.05 per unit
 MC = $0.43 per unit
Given these short run costs, which of the following statements is true?
◦ The firm is operating with excess capacity.
◦ The firm is operating at capacity.
◦ The firm has no capacity constraints.
◦ The firm is operating above capacity.
◦ The firm is producing a level of output where capacity is increasing.


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Marked as best answer by lingual on Oct 12, 2022

SphnxKickin

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lingual

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Reply 2 on: Oct 12, 2022
:D TYSM


AISCAMPING

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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