Answer:
Option B, Reduce average costs, is the right answer.
Explanation:
Option B is correct because if there is an increasing return to scale that means the firm is using additional inputs and the use of these inputs increases the output in greater proportionate than the proportionate increase in inputs. Moreover, the output of the company will increase. Consequently, the total cost will also increase but the average cost of production will fall.
Answer:
F(x) = 15000 + (140 + 0.04x)
F(x) = 300 - 6x
15000 ÷ (300 - 6x - (140 + 0.04x))
Explanation:
Given that :
Fixed cost = 15000
Variable cost = 140+0.04x
Selling price = 300 - 6x
Number of units = x
Total cost :
Fixed cost + variable cost
15000 + (140 + 0.04x)
Total revenue :
300 - 6x
F(x) = 300 - 6x
Break even point :
Total cost = total revenue
Break even point (units) :
Fixed cost ÷ (selling price per unit - variable cost per unit)
15000 ÷ (300 - 6x - (140 + 0.04x))
When there are a shortage of loanable funds and the interest rate rises, the quantity required exceeds the amount supplied, and the interest rate rises.
<h3>What happens if the interest rate in the economy rises?</h3>
Businesses and individuals will cut down on spending as interest rates rise. Earnings will suffer as a result, as will stock values. Consumers and corporations, on the other hand, will boost spending when interest rates have decreased dramatically, leading stock values to climb.
The availability of loanable funds indicates that as the interest rate rises, the amount of savings accessible will rise as well.
As a result, anytime interest rates rise, the economy will see a sudden and unexpected surge in borrowing costs.
Learn more about interest rates:
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Answer: B
Explanation:
Budgetary slack is a cushion created in a budget by management to increase the chances of actual performance beating the budget. Budgetary slack can take one of two forms: an underestimate of the amount of income or revenue that will come in over a given amount of time, or an overestimate of the expenses that are to be paid out over the same time period. Budgetary slack is generally frowned upon because the perception is that managers care more about making their numbers to keep their seats and gaming the executive compensation system rather than pushing company performance to its potential. Managers putting a budget together could low-ball revenue projections, pump up estimated expense items, or both to produce numbers that will not be hard to beat for the year. It also provides flexibility for operating under unknown circumstances, such as an extra margin for discretionary expenses in case budget assumptions on inflation are incorrect, or adverse circumstances arise.
The answer is going to be True
