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What can happen if the MRP is greater than a firm's MC?

The firm can afford to hire more workers.


What is quasi integration?

With quasi-integration, a firm internally produces less than half of its own requirements and buys the rest from outside suppliers.


Does Dividend has no relationship with the value of the firm as per Walter Model.?

According to Walter's Model, the relationship between dividends and the value of a firm is contingent on the firm's internal rate of return (r) compared to the required rate of return (k). If the internal rate of return exceeds the required rate, retaining earnings for reinvestment enhances firm value, suggesting that dividends may detract from it. Conversely, if the required return is greater than the internal rate, paying dividends can increase firm value. Thus, the model suggests a nuanced relationship between dividends and firm value rather than asserting that there is no relationship at all.


Why should a firm continue to operate under a short-run period when TR is greater than VC but less than TC?

The firm should continue to operate whenMarginal Revenue (MR) >= Variable Cost (VC = MC)Because it is still making a structural profit per unit, which indicates an economic profit is being made. When making optimal production decisions, one should not include sunk costs, including plant investment, which cause TC >= VC. While the firm will be operating at a loss, it is still achieving a positive cost-benefit outcome.


How many times the word firm in the bible?

The word 'firm' appears eight (8) times in the KJV Bible.

Related Questions

Who are the stakeholders in a firm?

stakeholders is a firm are the customers, staff, bank, suppliers, owners, bank, local authority.


How do economists measure the degree of competition in a market?

_Amount of control a firm or a group of firms have over the total market supply _The amount of influence a firm or group of firms have over market price _The freedom new suppliers have to enter the market


What website that often involves a strategic alliance between a firm and its suppliers?

electronic exchange


Who are skakeholders in a firm?

A stakeholder is defined as any party that has an interest in an enterprise or firm. Generally stakeholders include share holders, employees, customers and suppliers.


What is a vertical intergration?

Vertical integration is the degree to which a firm owns its upstream suppliers and its downstream buyers


What types of system helps expedite the flow of information between the firm and its suppliers and customers?

kms


What movie and television projects has Christa Suggs been in?

Christa Suggs has: Played Exercise class in "The Firm: Total Body - Better Body and Buns" in 1998. Played Exercise class in "The Firm: Total Body - Total Body Shaping Mix" in 2000. Played Exercise class in "The Firm: Body Sculpting System - Cardio Sculpt" in 2002. Played Exercise class in "Firm: Body Sculpting System - Body Sculpt" in 2002. Played Exercise class in "The Firm: Body Sculpting System - Ab Sculpt" in 2003.


What can happen if the MRP is greater then a firm's MC?

The firm can afford to hire more workers


What provides the connections between the firm and its environment?

The firm's network of relationships, such as suppliers, customers, competitors, and regulatory agencies, provides the connections between the firm and its environment. These connections help the firm to gather information, resources, and support, and also influence the firm's strategic decisions and performance.


What can happen if the MRP is greater than a firm's MC?

The firm can afford to hire more workers.


When a firm's expenses are greater than its sales revenue the firm has a?

When a firm spends more than it gains in revenue it is called a LOSS.


Why equity is a call option on a firm's assets?

There are two ways to view a firm in terms of options; both of which rely on the Call-Put parity relationship: C = S - PV(x) + P The first is the right hand side of the equation. This is saying that equity holders own the firm, owe PV(x) to the bondholders and have a put on the firm. Therefore, if the value of the firm exceeds the value of debt then the equity holders retain the firm and do not use the put. If the value of debt is greater than the value of the firm then the put is exercised to sell the firm in order to pay off the debt. The second way, which is identical to the first, is simply to say that the equity is a call option on the firm's assets. The bondholder's own the firm, have put PV(x) into the firm and receive the benefits of the firm. However, once the value of the firm exceeds the exercise price then the equity holders (call holders) will exercise their right to buy the firm, as it will now have positive value.