Determine if the business should remain open or close down

Assignment Help Business Economics
Reference no: EM13218433

When a business is losing money, then they need to decide if they should stay open or close. If they close, then they only have the fixed costs. On a graph, we would have to compare the price with the average variable cost. What decisions need to be taken into consideration to determine if the business should remain open or close down?

Reference no: EM13218433

Questions Cloud

Explain soluble sodium salt containing bromide and iodide : A student is given a soluble sodium salt containing one of eight possible anions (negative ions): acetate, chloride, bromide, iodide, sulfide, sulfate, or phosphate. the student adds some BaCl2 solution to the salt solution.
Find the charge on the capacitor : the circuit has been connected for several seconds, find current in (a). in the 4.00 volts battery, (b). in the 3.00 ohm resistor, (c). in the 8.00 volts battery, (d). in the 3.00 volts battery and (e). find the charge on the capacitor?
What are two fundamental advances : what are two fundamental advances in the circuit theory that were developed in the 19th century in response to the challenges of telegraphy?
Write the equation for the acceleration : Write the equation for the acceleration as a function of the position change of the platform.
Determine if the business should remain open or close down : If they close, then they only have the fixed costs. On a graph, we would have to compare the price with the average variable cost. What decisions need to be taken into consideration to determine if the business should remain open or close down
Depict the structure of the stereoisomer with dipole moment : The following compound has two stereoisomers. One has a dipole of 0 D, and the other has a dipole moment of 2.95 D. Draw the structure of the stereoisomer with dipole moment of 0 D.
Success of shoppers stop : What are the significant factors that have led to the success of Shoppers Stop and draw the typical profile(s) of Shoppers' Stop customer segments.
How much should be deposited : An indiviual wishes to deposit an amount of money now and $100 every six months so that at the end of five years $1500 will have been accumulated. With interest 4% per year, compounded semiannually, how much should be deposited?
Which project to select on the basis of the rate of return : Consider an investment project with the following cash flows: n Porject A Project B 0 -$150,000 -$120,000 1 $30,000 $25,000 2 $25,000 $15,000 3 $120,000 $110,000 A) Compute the IRR for each investment B) At MARR= 15% determine the acceptability of..

Reviews

Write a Review

Business Economics Questions & Answers

  Why would secrecy in operating a business be important

Why would secrecy in operating a business be important to an owner? What form of organization would be most appropriate for a business requiring great secrecy?

  They spend their time performing two favorite activities

They spend their time performing two favorite activities. Knitting scarves and making meatballs.

  Illustrate what does such a combination mean to this economy

Illustrate what does such a combination mean to this economy. Explain in detail being sure to discuss such a combination relative to resource utilization and efficiency.

  Illustrates the demand for spaghetti dinners served

This graphing calculator illustrates the demand for spaghetti dinners served in all the restaurants in a society.

  Illustrate a firm in monopolistic competition

Illustrate a firm in monopolistic competition that does not make a profit but rather a loss. Now illustrate how firm exit will change demand in the long run, allowing at least some firms to break even.

  What are best national bank reserves needed

Gigantic State University indicate that over the past twenty years tuition and enrollment have both increased. From this information. What are Best National Bank's reserves, needed reserves, and excess reserves.

  Illustrate what is the present macroeconomic situation

Illustrate what is the present macroeconomic situation (e.g. worrying about inflation also/or recession) in the U.S.

  Elucidate how advertising can be employed to allow tots-r-us

Elucidate how advertising can be employed to allow Tots-R-Us to keep cost above average cost with encouraging entry.

  Elucidate in economic terms what is perplexing situation

As medicines which with brand names that the man recognise from television commercials sell for more than the unadvertised versions. elucidate in economic terms this perplexing situation to the father.

  Think of any financial innovation in the past ten years

Think of any financial innovation in the past ten years

  Simple spending multiplier

For each values for the MPC, determine the size of the simple spending multiplier and the total change in real GDP demanded following a $10 billion decrease.

  Discuss how elasticities should be used in pricing decision

Discuss how elasticities should be used in pricing decisions. If you were responsible for setting the price of these volumes, what would you choose and why.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd