Statement b is correct. If AR is less than AVC, then each unit of output has a revenue below its variable cost. In turn, total revenue is less than total variable cost, so the firm's loss would equal the gap between its total revenue and its total variable cost plus its total fixed cost. If the firm instead shut down and produced nothing, it would have a zero total revenue, and it would buy no variable inputs and so have a zero total variable cost. So its loss would only equal its total fixed cost.
Which of the following areas are monitored in a PCA framework for evaluating whether the Non Banking Finance Companies (Deposit-taking and Non-deposit t...
Which of the following style of leadership is characterised by high relationship orientation and high task orientation?
During the financial year 2023-24, A had cash sales of ₹3,90,000 and credit sales of ₹1,60,000. His expenses for the year were ₹2,70,000, out of w...
The approximate percentage change in a bond’s price for a 1% change in yield to maturity is given by:
What was the increase in India’s net Foreign Portfolio Investment (FPI) flows in FY24, the highest since FY15 as per the economic survey 2023-24?
Under the revised framework for Commercial Papers (CPs), what is the requirement for settlement of primary issuance of CPs in terms of time?
How must entities with multiple lines of business (LoBs) granted by IFSCA complete their registration on the FIU-IND FINNET 2.0 Portal as per the March ...
A company's financial statements show a profit margin of 15% and a return on equity (ROE) of 20%. What is the company's asset turnover ratio assuming fi...
………. System is an organized method for waste minimization without sacrificing productivity within a manufacturing system.
Which one of the following is not one of Drucker's five guiding principles of management