A stock expects to pay dividends of $3.77 per share one year from today; $4.56 per share two years from today; and $5.95 per share three years from today. After that, dividends are expected to be constant at $6.22 per share per year indefinitely. Investors require a rate of return of 10 percent on this stock. How much should this stock sell for today?
a. $58.40.
b. $56.71.
c. $50.20.
d. $54.15.
e. $51.99.

Answers

Answer 1
I think the answer is e

Related Questions

How does a 12 year old get a lot of money

Answers

Answer:

babysitting, walking dogs, mowing lawns, shoveling snow,

Explanation:

Answer:

Explanation:

1)) babysitting

2)) small bussiness

3)) pet sitting

4)) yard work

5)) house sitting

6)) household work

7)) odd jobs

GL!

The executive summary component of a business plan is to describe _____.
a. where the funds to start and operate your business will come from, when you expect to see profit, and how much profit you expect to see

b. the size of the market, how your business will fit into the market, and how your business will stand out from other businesses in the market

c. the 'big picture' behind your business, what your business has to offer the consumer, and why your business will be successful

d. how your business will be organized and what type of management or department structure your business will have



Please select the best answer from the choices provided

A
B
C
D

Answers

Answer: c. the 'big picture' behind your business, what your business has to offer the consumer, and why your business will be successful

Explanation:

Why are mutual funds considered a high risk form of investment

Answers

Like other investments, mutual funds carry risk, which indicates you might lose money. The value of the majority of mutual funds will change when the worth of their assets rises and declines.

What are high-risk mutual funds referred to as?

Mutual funds invested in heavy debt securities with subpar credit ratings and small- or semi-equity funds are two examples of high-risk mutual funds. There is a lot of room for expansion for medium-sized or tiny businesses.

The level of risk associated with a mutual fund. Assets are chosen by a professional manager to satisfy the risk and return goals of the fund.

Therefore, A heavy investment is one that has a reasonably high chance of suffering a major failure or a significant percentage likelihood of losing money or performing poorly.

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Scheduling personnel is an example of an operations management:
A. mission implementation
B. operational decision
C. organizational strategy
D. functional strategy
E. tactical decision

Answers

Answer:

B. operational decision

Explanation:

Scheduling personnel is an example of an operations management:  operational decision

Scheduling personnel represents an example of an operations management of an operational decision.

The following information should be considered:

The staff-level decisions should be made from the lower level to the hierarchy level.Many decisions should be taken at many hierarchy levels.In this, the authority is present for taking the decisions.The lower level should take the decisions with respect to the employees.

Therefore the other options are incorrect.

Hence we can conclude that scheduling personnel represents an example of an operations management of an operational decision.

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What detail will a purchase specification for milk usually include?
brand
price
packaging size
intended use ​

Answers

Answer:

I would try C packing size.

FILL IN THE BLANK ________ teams have been found to have a positive effect on productivity and attitudes of control, yet no impact on job satisfaction or organizational commitment.
Project
Cross-functional
Work
Self-managed
Virtual

Answers

Self-managed teams have been found to have a positive effect on productivity and attitudes of control, yet no impact on job satisfaction or organizational commitment (Option 4).

What are self-managed teams?

Self-managed teams are different organizational groups in which the individuals that form part of the institution are able to take decisions on their own, which has positive outcomes in terms of productivity and also the ability to handle different situations.

Therefore, with this data, we can see that self-managed teams are positive in the way that they can manage different situations and it increases productivity.

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Opportunity cost is _____.

the cost of business itself
the cost of travel, entertainment and other activities that provide an opportunity for recreation
the cost of an alternative product or service that cannot be acquired because the available funds were used for another purpose
none of the above

Answers

Opportunity cost is the cost of an alternative product or service that cannot be acquired. Opportunity cost is frequently referred to as the second-best option.

The loss of gain that would have been realised if a different option had been chosen is sometimes product referred to as the alternative cost. The loss of benefit as a result of a change in choice is another way to explain it. The value of the next-highest-valued alternative use of a resource is what economists mean when they talk about its "opportunity cost." You cannot, for instance, read a book at home during the time you would have spent seeing a movie and spend the money you would have spent on something else.

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Two carmakers have developed a strange but successful partnership. Ford, a U.S. automaker,and Mazda, an Asian carmaker, have collaborated on several models, including the Explorer, the Probe, the Mazda 323, and the Mazda MX-6. The U.S. automaker has supplied Mazda with help in marketing, finance, and styling. In return, Mazda has provided manufacturing and product development expertise to Ford. Both companies have worked together toward a common goal and both have benefited as a result of theirA. strategic alliance.B. international contract.C. free trade agreement.D. collaborative treaty.E. global oligopoly.

Answers

Answer:

A. strategic alliance

Explanation:

A strategic alliance refers to an agreement that is made between the two companies to work for accomplishing a common objective also in this the independence is there for working. It is less difficult and less binding as compared with the joint venture

Therefore in the given situation, it represents upon the strategic alliance and the same is to be considered

hence, the correct option is A.

Bahir Dar Textile Factory, has reported the following information for the year ended S Business income during 2014 tax year is; Sales revenue---... Expenses during 2014 tax year is Br. 1,750,000 Direct material cost............ Br. 550,000 Salary expense..... .Br. 450,000 Administrative expense....... Br. 235,000 Maintenance expense....... Br. 50,000 Interest expense.... Br. 43,300 Advertisement expense.... . Br. 25,500 Depreciation expense........... Br. 20,000 Determine taxable income, tax liability and net profit of Bahir Dar Textile Factory Under the Ethiopian tax proclamation code; write the type/list of products that shall be when either produced locally or imported and the rate which they are taxed. What is stamp duty tax? What type of instruments shall be chargeable with stamp duty? What is tax liability? How the taxpayer can determine their tax liability? ....​

Answers

a) The taxable income is Br. 376,200, the tax liability, assuming a flat rate of 30%, is Br. 112,860, and the net profit is Br. 263,340.

b) Stamp duty tax is a levy imposed by the government to record certain transactions.

c) Tax liability refers to the amount due as tax for the taxable period.

d)  The tax liability is derived by applying the appropriate tax rates on the taxable income.

How the taxable income is determined:

The taxable income refers to the income after deducting some allowances, including business expenses, from the gross income.

The taxable income forms the basis for determining the tax liability and the net income.

Bahir Dar Textile Factory

Income Statement

For the year ended December 31, 2014

Sales Revenue                          Br. 1,750,000

Direct material cost                    Br. 550,000

Gross profit                              Br. 1,200,000

Expenses:

Salary expense                   Br. 450,000

Administrative expense     Br. 235,000

Maintenance expense         Br. 50,000

Interest expense                  Br. 43,300

Advertisement expense     Br. 25,500

Depreciation expense        Br. 20,000

Total expenses                            Br. 823,800

Taxable income                           Br. 376,200

Tax liability (30%)                          Br. 112,860

Net profit                                     Br. 263,340

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Explain why a qualified audit report is not a good reflection of a company? Provide two points

Answers

A qualified audit report might not a good reflection of a company because it indicates that there are issues in the financial statements.

Why does a qualified audit report fail to provide an accurate assessment?

A qualified audit report is issued when auditors identify material misstatements or limitations in their examination of a company's financial statements. These misstatements or limitations can arise from various factors such as inadequate accounting records.

It also includes uncertainties regarding the company's ability to continue as a going concern or disagreements with management over accounting treatments. Consequently, a qualified audit report raises doubts about the accuracy, reliability and completeness of the financial information presented by the company.

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What is penetration pricing?
OA. The approach of lowering prices temporarily to gain market share
OB. Intentionaly not lowering prices below all competitors in order not
OC. A fairly standard retail markup in which the retailer's cost is
O D. When a business simply tries to bring in enough revenue to survive
to enter into price wars
doubled
the difficult period

Answers

Answer:

A. The approach of lowering prices temporarily to gain market share

Explanation:

Penetration pricing is a strategy that marketers use to quickly gains market share of a new product. The strategy involves lowering the price of new products to woe customers to buy. The lowering of the price is temporary. Marketers use this strategy to introduce a product as a pocket-friendly alternative.

Penetration pricing is used where a product will be in competition with other existing brands. After the product has gain market share,  marketers may increase the price to make profits.

Answer:

A

Explanation:

The stock style box classifies individual stocks by growth, value, and core.
The stock mutual fund style box classifies individual stocks by value, growth,
and blend. These are often referred to as the equity style box. Together, the
vertical and horizontal axes can be used to classify a mutual fund into 1 of _______categories.

Answers

Together, the vertical and horizontal axes can be used to classify a mutual fund into 1 of nine categories.

The stock style box classifies individual stocks by growth, value, and core. The stock mutual fund style box classifies individual stocks by value, growth, and blend. These are often referred to as the equity style box. Together, the vertical and horizontal axes can be used to classify a mutual fund into one of nine categories.

The nine categories are large growth, large blend, large value, mid-cap growth, mid-cap blend, mid-cap value, small growth, small blend, and small value. It is common for investors to use the style box to classify mutual funds, which provides a useful way to understand the risk and return characteristics of an investment.The style box is divided into three parts, the vertical axis, the horizontal axis, and the grid that is formed by these two axes.

The vertical axis represents a market capitalization scale and can be divided into three categories: large-cap, mid-cap, and small-cap. The horizontal axis represents a value versus growth scale and can also be divided into three categories: value, blend, and growth.

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In two to three sentences, answer the following: What is the most important information you need to receive a stock quote? What information you can obtain from a stock quote?

Answers

A timestamp is the most important information you need to receive a stock quote.

The time-stamp that indicates how old the market quote is probably the most crucial element to pay attention to. The day's peak and lowest point, amount, and occasionally the 52-week maximum and low are other significant bits of knowledge that a stock quotation displays. The market value of a stock as it is quoted on a securities exchange is known as a stock quotation.

A fundamental quotation for a particular stock gives details such the bid and ask prices, last exchanged price in and volume traded. Even if a stock's value might climb without considerable earnings growth, its ability to continue rising depends on its P/E ratio.

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Assume that a gourmet food manufacturer has considered renting a booth at a local mall to sell gift boxes of candy, nuts, and cookies during the holiday season. The fixed costs to rent and operate the booth would be $27,900. The unit contribution margins and sales mix anticipated by the company are as follows: Unit Contribution Margin Sales Mix Candy $1.50 50% Nuts $2.00 30% Cookies $1.00 20% What would be the weighted average contribution margin

Answers

Do not go to the link its bad

Tillman Corporation uses a Job Order Costing system and has two production departments--Molding and Assembly. The company applies manufacturing overhead to production orders on the basis of direct labor costs. Separate departemental predetermined overhead rates are used. Budgeted manufacturing costs for the year are as follows: Annual Budget (Estimates) Molding Assembly Direct Materials $700,000 $100,000 Direct Labor $200,000 $800,000 Manufacturing Overhead $600,000 $400,000 If Job 432 reports $25,000 in direct materials and total direct labor of $20,000 ($8,000 in Molding and $12,000 in Assembly), what is the total cost for Job 432?
A. $55,000
B. $65,000
C. $75,000
D. $50,000?

Answers

Answer:

C. $75,000

Explanation:

Departmental OH Rate                Molding    Assembly

Direct Labor                                  200000    800000  

Manuf. OH                                     600000     400000  

Manuf. OH to Direct Labor Ratio 300% 50%

                                                                       Molding  Assembly  Total

Materials                                                                                           25000

Direct Labor                                                      8000       12000    20000

Applied Manuf. OH [Direct labor * OH Rate]   24000     6000     30000

Total cost for Job 432                                                                      75000

The price of a video is $3 and the price of a dinner is $9. From this we know that a consumer who is maximizing utility will a. Buy enough of the two goods such that the marginal utility from the last dinner consumed is three times greater than the marginal utility from the last video. b. Buy three times as many dinners as videos. c. Buy rnough of the two goods such that the marginal utility from the last vide is three times greater than the marginal utility from the last dinner consumed. d. Buy three times as many videos as dinners.

Answers

The correct answer is C. Buy enough of the two goods such that the marginal utility from the last dinner consumed is three times greater than the marginal utility from the last video. Marginal utility is additional satisfaction that is received when one consumes an additional unit of a good.

In economics, the software is the satisfaction or benefit derived from eating a product. The marginal utility of an awesome or carrier describes how plenty of satisfaction or delight is won by way of purchasers because of the growth or lower in intake by using one unit. There are three varieties of marginal utility.

Marginal application is the delivered satisfaction that a consumer gets from having one extra unit of a good or service. The concept of marginal software is used by economists to determine how a good deal of objects purchasers are inclined to buy. In other words, a bad marginal application indicates that each unit of goods or carrier ate up will do extra damage than suitable, to be able to result in the lower of average software degree, whilst the tremendous marginal utility shows that every unit of products or services consumed will boom the overall software stage.

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Gita is an auto mechanic and runs a small repair shop. She hires one mechanic, and the usual labor cost is $20,000 per year (but it could go up and down depending on how much is produced), pays a monthly rent of $5,000 towards the lease of the premises where her repair shop is located, and spends $20,000 per year on materials needed for repairing cars and trucks. She has invested $40,000 of her own savings in heavy equipment (air and strut compressors, brake lathes, heavy-duty lifts etc.) that could earn her $4,000 per year if invested elsewhere. She has been offered $40,000 per year by a competitor to work as a mechanic for them and she estimates the value of income she could earn in her spare time to be $5,000. The repair shop’s total annual revenue is $250,000. What is Gita’s yearly fixed cost? $_____.

Answers

Based on the information Gita’s yearly fixed cost is  $60,000.

Since Gita’s pays monthly rent of the amount of $5,000 per year which means that the yearly fixed cost is $60,000.

The yearly fixed cost is calculated using this formula

Fixed cost=Rent× Number of month in a year

Where:

Rent=$5,000

Number of month in a year=12 months

Let plug in the formula

Fixed cost=$5,000×12 months

Fixed cost=$60,000

Inconclusion Gita’s yearly fixed cost is  $60,000.

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why is education considered as an investment

Answers

Education is considered as an investment in human capital. Human capital can be described as the knowledge, abilities and skills of an individual, acquired through education, training and experience, which help the latter to be more productive and thus improve his potential income earning.

t and Businesses
10
Select the correct answer.
George works in a factory and is a member of the labor union. He thinks his wages are low for the work that he does, so he tells the union
representative that his employer should increase his wages. The representative asks the other workers if they feel the same, and they all agree. The
following week, the union representative met with the factory owner regarding an increase in wages, and the employer agreed to it. What strategy did
the union use to get the owner to agree to increase wages?
OA. individual bargaining
B. threaten to go on a strike
OC. collective bargaining
D. threaten to quit their jobs
OE. filing a petition to the government
Reset
Next

Answers

Answer:

Among the options given on the question the correct answer is option OC.

Collective bargaining.

Explanation:

On the passage there is description of the demand of a worker to raise the wage. George thought that he need a rise in his salary. So he talked to the workers union representatives about increasing the salary. The union representative asks the other workers to know their consent. Here, George did not go to the employer by himself. he went through the union. Another point is that, the union representative also heard about the consent or feeling of the other workers.

After all of them being agreed, the union representative met the owner of the factory and asked the owner to increase the wage. The owner also agreed to the union representative. Because it was the demand of all of the workers. Therefore, it was a collective bargain for the union representative to the factory owner.

Hope it help!

d. the expectation that the equilibrium price of auto tires will be lower in the future than it is now: (click to select) .

Answers

In the hopes that the equilibrium price of auto tires would drop in the future, businesses are selling their inventory now while the price is still high.

What is supply?

The amount of a resource that businesses, producers, workers, providers of financial assets, or other economic agents are willing and able to offer to the market or to a specific person is known as supply in economics.

Supply can refer to manufactured items, labor hours, raw resources, or any other in-demand or pricey item.

Supply is frequently represented graphically as a supply curve, with the amount supplied as a function of price on the horizontal axis and price per unit on the vertical axis.

It is sad yet a common practice to reverse the dependent and independent variables from their customary positions.

So, in the given situation, the supply increases.

Businesses sell their inventories now while the price is still high in the hopes that the equilibrium price of auto tires would decrease in the future.

Therefore, in the hopes that the equilibrium price of auto tires would drop in the future, businesses are selling their inventory now while the price is still high.

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Correct question:

The expectation that the equilibrium price of auto tires will be lower in the future than it is now: Supply _____

What is the total amount of Five Below's Liabilities plus Stockholders' Equity in the 2021 fiscal year?


What is the total amount of Five Below's Liabilities plus Stockholders' Equity in the 2021 fiscal year?


$2,880,460,000


$1,120,284,000


$2,880,460


$2,314,770,000


$1,760,176,000

Answers

$2,880,460,000 is the total amount of Five Below's Liabilities plus Stockholders' Equity in the 2021 fiscal year .

What is Current liabilities ?

A company's obligations or debts that are due within a year or the normal operating cycle are referred to as current liabilities. In addition, a current asset—either cash or a new current liability—is used to settle current liabilities.

On a company's Balance Sheet, current liabilities include accounts payable, accrued liabilities, short-term debt, and other similar debts.

Notes Payable, Accounts Payable, Short-Term Loans, Accrued Expenses, Unearned Revenue, Current Portion of Long-Term Debts, and Other Short-Term Debt are all considered current liabilities.

As current liabilities provides us with a general picture of your company's short-term financial standing and is useful for working capital expenditure planning. A healthy business is typically one with fewer current liabilities than current assets.

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QUESTION ONE
ABC Ltd wishes to expand its business. On 31 Dec 2021, the company had
the following existing and proposed capital structures to support the
expansion programme.
1. The existing 8% debt capital has a book value of Ksh 50 000 000 and
matures in 10 years. The market value of debt at the close of business on
31 Dec 2021 was Ksh 40 000 000
2. A ten year loan of Ksh 300 000 000 is to be raised at an interest of 10
percent p.a. A cost of Ksh 20 000 000 will be incurred in raising this loan
3. A 12% preference stock capital stands in the books at Ksh 100 000 000
( 1 000 000 shares) and has a total market value of Ksh 150 000 000.
4. There are 40 000 000 ordinary shares with a current market price of Ksh
1500 each. The firm’s expected earnings per share (EPS) stand at Ksh
200, its growth rate is 6% and has a dividend payout of 60%.
5. The company plans to issue 10 000 000 ordinary shares at a market price
of Ksh 1 500 per share. The cost of floating the shares is estimated at Ksh
10 000 000.
Required:
i) Firm’s current weighted average cost of capital (10 marks)
ii) Firm’s expected weighted average cost of capital after the expansion
programme (i.e. marginal cost of capital) (5 marks)
QUESTION TWO
An investor intends to place Ksh 112,000,000 in the 91 days Treasury bill at a quoted rate/yield of 7.65%
p.a.
Required:
a) Compute the investor’s return, assuming that he is withholding tax-payer
b) Compute the investor’s return, assuming that he is non-withholding taxpayer (6 marks)

Answers

Answer:

rat

Explanation:

determine the monthly payment for a 60-month truck loan with an apr of 11% and an initial principal of $17,000 ($).

Answers

The monthly payment for a 60-month truck loan is $341.90.

The monthly payment for a loan depends on the total loan amount, the interest rate, and the repayment period.

Calculate the monthly interest rate by dividing the APR by 12 months.

11% APR/12 months = 0.0092 monthly interest rate.

Calculate the total number of payments (N) by multiplying the number of years (60) by 12 months.

60 years x 12 months = 720 payments

Calculate the monthly payment by using the formula:

Monthly Payment = (Principal x Monthly Interest Rate) / (1 - (1 + Monthly Interest Rate)^(-N))

Monthly Payment = ($17,000 x 0.0092) / (1 - (1 + 0.0092)^(-720))

Monthly Payment = $341.90

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Do you believe the statement "perception is reality"? Why or why not?

Answers

I wholeheartedly agree and think it’s practically self-evident.

Here’s an excellent example from history.

For 28 years, the Berlin Wall separated East Berlin from West Berlin and was the most heavily militarized border crossing in the Western hemisphere. In 1989, during a press conference with western media, Gunther Schabowski was handed a note explaining a change in policy governing border crossing. Several discussions took place about making a show of opening the border between East and West Germany, but nobody informed Schabowski.

At the end of the press conference, he appears to have remembered the note belatedly, and read it verbatim—which was not what was intended. When asked about when the border would open, he assumed it was immediate.

The reality of course was that East Germany had no intention of opening the border, and certainly not immediately.

Within hours, the border crossing was practically buried under thousands of East Germans eager to be reunited with their families and other loved ones after 28 years on the press conference, which had been broadcast live.

The East Germans believed what they were told: Schabowski said immediately, and they intended to go immediately.

Border guards kept calling for instructions, until finally, they relented.

Perception became reality, and the border between East and West Berlin opened, spelling the de facto end of the separation of Germany.
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Related Questions (More Answers Below)

Which phrase best describes the real interest rate?
A. The nominal interest rate plus the rate of inflation
OB. The rate of inflation minus the nominal interest rate
C. The nominal interest rate minus the rate of inflation
D. The rate of inflation times the nominal interest rate

Answers

Answer:

C. the nominal interest rate minus the rate of inflation

Explanation:

normally the nominal interest rate is set while taking into account the purchasing power as money lose value as time goes on, therefore to get the real interest rate the influence of inflation on interest rate must be excluded.

Answer:

C) The nominal interest rate minus the rate of inflation.

Explanation:

I got it right on the test

The earning of omega supply company have grown from 2.00 per share to 4.00 per share over a nine year period. determine the compound annual growth rate​

Answers

Compound annual growth rate​ is

CAGR = 0.1604

What is the compound annual growth rate​?

Generally, Compound annual growth rate (CAGR) is a measure of the rate of return of an investment over a certain period of time. It is calculated by taking the nth root of the total percentage growth rate, where n is the number of years in the period being considered. CAGR helps investors compare investments over different time periods, as it removes the effects of compounding.

CAGR = (4/2)^(1/9) - 1

CAGR = 0.1604 or 16.04%

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Which of the following is a common role adjustment for a couple during the empty nest stage? *

Answers

Zhjakakakakaoao snaps
I can’t see the question, but I would say that they have to adjust from being a parent to taking care of their spouse etc?

1.Apply the SOSTAC model to ASOS and highlight why it has become
such a successful online fashion brand?

Answers

he SOSTAC model is a strategic planning framework that stands for Situation analysis, Objectives, Strategy, Tactics, Action, and Control.

Situation analysis: ASOS operates in the highly competitive and dynamic online fashion industry. It was founded in 2000 and has grown rapidly since then to become a global brand with a presence in over 200 countries.

Objectives: ASOS's objective is to become the go-to destination for online fashion shopping. It aims to provide its customers with a seamless and personalized shopping experience that caters to their unique style preferences.

Strategy: ASOS's strategy is centered on offering a wide range of products from its own label as well as other brands, at competitive prices. It also uses technology to enhance the customer experience by providing features like visual search, social media integration, and personalized recommendations.

Tactics: ASOS uses various tactics to execute its strategy, such as aggressive marketing campaigns, partnerships with influencers, and collaborations with other brands. It also invests heavily in technology to constantly improve its online platform and provide customers with a seamless shopping experience.

Action: ASOS regularly updates its product offerings, website design, and marketing campaigns to stay relevant and appeval to its target audience. It also actively engages with its customers through social media and other channels to understand their preferences and needs.

ASOS has become such a successful online fashion brand due to its effective execution of the SOSTAC model. Its focus on offering a wide range of products at competitive prices, using technology to enhance the customer experience, and actively engaging with customers has helped it establish a strong brand identity and a loyal customer base.

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Label the parts of the Supply & Demand Curve. Demand Supply Equilibrium Price Quantity ​

Label the parts of the Supply & Demand Curve. Demand Supply Equilibrium Price Quantity

Answers

The law of supply and demand is the foundation of microeconomics. In this system, supply refers to the amount of a particular product or service that businesses are prepared to provide, while demand refers to the amount of the same product or service that consumers want to purchase.

Supply and Demand Curve Labeling Demand curve: The quantity of a good that consumers are willing to purchase at a given price point is known as the demand curve. Demand curves are usually drawn downward-sloping because as the price of a good rises, consumers become less willing to pay for it.

Supply curve: The quantity of a good that businesses are prepared to offer at a particular price point is known as the supply curve. Because businesses are more likely to provide additional goods if the price of those goods is high, supply curves are often upward-sloping.

Equilibrium point: The price at which the amount of a good that consumers are willing to buy is equal to the amount of that good that businesses are prepared to supply is known as the equilibrium point. In other words, it's the point where the supply and demand curves intersect.

Quantity: The quantity of goods that are supplied and demanded at the equilibrium point is the quantity.In conclusion, the supply curve illustrates the relationship between price and quantity supplied, whereas the demand curve illustrates the relationship between price and quantity demanded.

The equilibrium price and quantity can be found where the two curves intersect.

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A firm suffering economic losses decides whether or not to produce in the short run on the basis of whether:_________

a. revenues from operating are sufficient to cover fixed plus variable costs
b. firms suffering economic losses will always shut down
c. Price cover minimum variable costs
d. revenues from operating are sufficient to cover fixed costs

Answers

Answer:

C

Explanation:

A firm is making economic losses if opportunity cost is greater than accounting profit.

In the short run, a firm should shut down if price is less than variable cost.

A short run is the period where all the factors of production are fixed

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments

If production is zero or if production is a million, Mortgage payments do not change - it remains the same no matter the level of output.  

Hourly wage costs and payments for production inputs are variable costs

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.  

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