--%>

Explain why firms may close in Short Run

Val Alvarado, an accountant, quit his $80,000 year job and bought an existing laundry through its earlier owner, he was Ricky White. The lease has five years stayed and needs a monthly payment of $4,000. Val's explicit cost amounts to $3,000 per month more than his revenue. Must Val continue operating his business: w) his (Val’s) explicit cost exceeds his total revenue. He must shut down his laundry. x) Val must continue to run the laundry till his lease runs out.  y) when Val's marginal revenue is greater than or equivalent to his marginal cost, and then he should stay in business. z) it cannot be found without information on his revenue.

Please help me to solve the problem of scarcity that is given above.

   Related Questions in Managerial Economics

  • Q : Illustrates the economies of scale are

    Illustrates the economies of scale are categorization?

  • Q : Strategy probable to make a cartel A

    A strategy probable to make a cartel successful would be for cartel members to: (w) give heterogeneous goods. (x) stagger the amount by that they raise prices. (y) have set enforceable production quotas. (z) keep high prices when several fringe compet

  • Q : Negatively bending Labor Supplies An

    An individual’s labor supply curve is negatively sloped that is backward-bending into a range of wages while the: (i) demand for goods exceeds the demand for leisure. (ii) worker offers more hours of labor while the wage rate in

  • Q : Use of Screening and Credentialism

    Critics of the wide use of screening and signaling within hiring practices argue which: (w) formal training is never very important in preparing workers with necessary skills. (x) worker credentials tend to be negatively related to productivity. (y) l

  • Q : States the term Production States the

    States the term Production?

  • Q : Characteristics of a good policy what

    what is that policy that talks about not changing the policy frequently?

  • Q : Differentiate between individual and

    Differentiate between individual demand schedule and Market demand schedule in law of demand?

  • Q : Illustrates managerial Economics

    Illustrates the managerial Economics according to Michael Baye? Answer: In the words of Michael Baye as this term Managerial Economics is the study of how to directl

  • Q : Welfare definition of economics Explain

    Explain the welfare definition of economics? Why is it criticized?

  • Q : Moral Hazard and Efficiency Wages

    Firing a worker who regularly goods off and calls in sick may not resolve the moral hazard problem of shirking when: (w) there is a high probability which the worker will sue the firm. (x) the local unemployment rate is high. (y) average worker productivity is low. (z