Jared runs a personal training studio, earning $5,000 last month. his fixed costs are $4,000, and his variable costs are $3,500. should jared shut down his business immediately? a) yes, because he is clearly losing money.
b) yes, because $5,000 cannot cover his fixed costs.
c) no, because $5,000 covers his fixed costs.
d) no, because $5,000 covers his variable costs.

Correct answer is C. No, because $5,000 covers his fixed costs

Explanation:

Jared should not shut down immediately his business despite of the loses for the month. Earnings for the month can still cover the fixed cost of the period and there is still a huge possibility that it can recover in the forthcoming periods. Matching principle in recognition of income might also be a reason for the said loses. Jared should still forgo in running the business.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

i'ts proportional. if the inflation rate is 12% for example, the cpi will be 12% less.

hope it ,

bioteacher101