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Firms would not want to incur transactions costs. In fact, firms would much prefer to have zero transactions costs, since that would maximise their profits.
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What is an example of a standby cost?
The firm will incur standby costs even if it does not use existing capacity; examples include property taxes and depreciation on a building.
If All else is constant an increase in a firm's cost of debt will do what?
will result in an increase in the firm's cost of capital.
Can a perfectly competitive firm set a price for its products that is above marginal cost?
A perfectly competitive firm would set its prices at a perfectly competitive price.
A firm's marginal cost curve above the average variable cost curve is also?
A firm's short run supply curve
If a perfectly competitive firm's price is above its average total cost the firm?
is earning a profit
How do you calculated the cost of transaction for a brokerage firm?
take the toal operating cost and divide it on the number of transaction
How would you define a standard cost?
A standard cost is a predetermined cost that a company expects to incur in producing a unit of product or providing a service. It is used as a benchmark for evaluating actual costs and performance. The standard cost is based on factors such as historical data, industry benchmarks, and management estimates.
What is an example of a standby cost?
The firm will incur standby costs even if it does not use existing capacity; examples include property taxes and depreciation on a building.
What is a cost structure?
The expenses that a firm must take into account when manufacturing a product or providing a service. Types of cost structures include transaction costs, sunk costs, marginal costs and fixed costs. The cost structure of the firm is the ratio of fixed costs to variable costs.
How much would a graffiti removal program cost?
It depends on which professional firm you are firing for Graffiti Removal in London, it varies from firm to firm on their quality of work.
Jekyll Company collected 500 on account What impact will this transaction have on the firm's current ratio?
no impact
If All else is constant an increase in a firm's cost of debt will do what?
will result in an increase in the firm's cost of capital.
Can a perfectly competitive firm set a price for its products that is above marginal cost?
A perfectly competitive firm would set its prices at a perfectly competitive price.
What is price leadership by low cost firm?
Price leadership by low cost firm is what results when a firm determines the prices of services and goods within its sector.
How transaction process impact organization and business firm?
Transaction processing systems help businesses charge customers. If a business doesn't have a proper system money can get missing from the organization.
How would you define a traceable cost?
Traceable cost ; direct cost. A cost the firm can identify with a specific product, such as the cost of a computer chip installed in a given personal computer, or with some activity.
When a firm's marginal revenues are higher than its marginal cost?
Marginal cost is
