Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506725
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 21, Problem 6CQ
To determine
The advantages, disadvantages, and efficiency of a corporate form of business firm.
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Chapter 21 Solutions
Economics: Private and Public Choice (MindTap Course List)
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Similar questions
- I was wondering what the answer to this problem in Krugman´s microeconomics book is: A benefit maximizer company has an economic loss of 10.000$ per year. Its fixed cost is 15.000$ per year. In the short term, should they keep producing or should the close the business? In the long run, should they stay in business? And if the company had a fixed cost of 6.000$ per year, should they stay in business in the long and short run? Thank you!arrow_forwardSuppose that you want to open a new business or purchase an existing one. Describe that business. What good or service would you provide? Where would you be located? What would be some explicit costs of starting the business? What would be some implicit costs?arrow_forwardWhat is the principal advantage of the corporate form of business organization? Discuss the importance of this advantage to the owner of a small family restaurant. Discuss the importance of this advantage to a wealthy entrepreneur who owns several businesses.arrow_forward
- Why might a business hire an entrepreneur to meet their organizational goals?arrow_forwardWhat must an entrepreneur do to earn a profit? How do theactions of firms earning profits influence the value of resources?What happens to the value of resources when losses are present?If a firm making losses goes out of business, is this bad?Why or why not?arrow_forwardThe performing arts industry in Australia can be divided into commercial and non- commercial sectors. What are the main differences between these two sectors in terms of their economic structure and the operation of typical businesses? You might illustrate your answer with one or two examples.arrow_forward
- Some producers do not stop their production when they face loss in their production. Why?arrow_forwardExplain why clear understanding of the environment within which it operates is important for business..arrow_forwardDiscuss the differences between corporate level, businessunit level, and functional level strategies.arrow_forward
- Evaluate the factors affecting firm behavior, such as production and costsarrow_forwardFamily Mart like inner city grocery stores, sometimes exist even though they do not earn economic profits. How can you explain this? It is clear that businesses operate in the short run, but do they ever operate in the long run? Discuss. What are the different type of costs incurred in the short run and in the long run?arrow_forwardLooking at family business, integrate the knowledge you learn to analyze TWO challenges that the family business face and the family business can overcome these challenges? (150 WORDS) Analyze TWO challenges you face in the family business operation/management and how do you tend to overcome these challenges? (150 WORDS)arrow_forward
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