The accountants hired by davis golf course have determined total fixed cost to be $75,000, total variable cost to be $130,000, and total revenue to be $145,000. because of this information, in the short run, davis golf course should: a) shut-down. b) exit the industry. c) stay open because shutting down would be more expensive. d) stay open because the firm is making an economic profit.

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?

Cynthia is a hospitality worker in the lodging industry who prefers to cater to small groups of people. she might want to open a

Because the demand for wheat tends to be inelastic. true or false