--%>

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 : States the Extension and Contraction of

    States the Extension and Contraction of Demand.

  • Q : Explain the steps for demand estimation

    Explain the steps for demand estimation.

  • Q : Marginal revenue product and marginal

    When the marginal revenue product of the last worker hired through a large firm is fewer than its marginal resource cost, in that case the firm: (i) increases profits if this lies off a few workers. (ii) operates in a region of decrea

  • 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 : Illustrates the important leading

    Illustrates the important leading indices?

  • Q : Surplus payment from society to

    If a resource is in perfectly inelastic supply (like land), the resource price: (w) has no allocative function. (x) would rise only when resource demand falls. (y) is a surplus payment from society as an entire to resource owners. (z)

  • Q : Define Cost Volume-Profit relationship

    Describe briefly Cost Volume-Profit relationship?

  • Q : Occurrence of production Production

    Production broadly happens while: (1) a corporation creates a profit. (2) weather disperses economic bads within the environment. (3) knowledge is used to direct energy to change materials and raise their value. (4) resources are combined within a bal

  • Q : Wage rate at demand of labor When the

    When the wage rate price of $13, in that case this firm would hire slightly fewer than: (i) 600 workers. (ii) 700 workers. (iii) 800 workers. (iv) 900 workers (v) 1000 workers.

    Q : Demand for labor between two points in

    The arc elasticity of Plastibristle’s demand for labor between point a and point b is: (1) 0.375. (2) 0.667. (3) 0.833. (4) 1.200 (5) 2.000.

    Discover Q & A

    Leading Solution Library
    Avail More Than 1451468 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads
    No hassle, Instant Access
    Start Discovering

    18,76,764

    1948087
    Asked

    3,689

    Active Tutors

    1451468

    Questions
    Answered

    Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

    Submit Assignment

    ©TutorsGlobe All rights reserved 2022-2023.