A. consider a firm that has no fixed costs and that is currently losing money. are there any situations in which it would want to stay open for business in the short run? yes, the firm might want to operate in the long run. no, the firm will want to shut down. yes, the firm will operate if revenue is greater than variable costs. there is insufficient information to make this determination. b. a firm with no fixed costs should shut down. has an accounting profit. has a normal profit. is really in the long run.

Alicia has a collision deductible of $500 and a bodily injury liability coverage limit of $50,000. she hits another driver and injures them severely. the case goes to trial and there is a verdict to compensate the injured person for $40,000 how much does she pay?

Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.

Which of the following is not a factor to consider when deciding whether to accept a special order? whether this order will hurt the brand name of the company whether other potential orders would be more profitable whether additional fixed costs would need to be incurred whether the offered price is sufficient to cover prime costs and fixed overhead allocated all of the above