American idle sells hammocks in a perfectly competitive market. this year, the price of hammocks has fallen to $24, and simon cowbell, the manager of american idle, is trying to decide what to do. he discovers that his average variable cost (avc) is $25, average total cost (atc) is $30, and marginal cost is $24 and upward sloping. what should he do? a. decrease production so that mc falls below $27. b. increase production until atc falls below $27. c. shut down because p avo.

Xt year baldwin plans to include an additional performance bonus of 0.25% in its compensation plan. this incentive will be provided in addition to the annual raise, if productivity goals are reached. assuming the goals are reached, how much will baldwin pay its employees per hour?

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.

Which of the following is not a characteristic of a weak economy? a. a low employment rateb. a high inflation ratec. a decreased gdpd. a high unemployment rate