Answer:
TFC : Horizontal Line parallel to X axis
TVC : Upward sloping inverse S shape curve from origin
TC : Upward sloping increase S shape curve, with Y axis intercept = TFC
Explanation:
Total Fixed cost [TFC] is the total production expenditure, done on fixed factors of production (Eg - on machine, building etc). It is incurred even at zero level of output, stays same (constant) irrespective of output level. So, it's curve is a constant horizontal line.
Total Variable Cost [TVC] is the total production expenditure, done on variable factors of production (Eg - on raw material). It is zero at zero level of output, directly related to level of output thereafter. It first increases at a decreasing rate, then increases at an increasing rate. So, it's curve is inverse S upward sloping curve from origin.
Total Cost [TC] is the total cost incurred on all factors of production (fixed & variable). It is sum of TVC & TFC. As TFC is constant at all levels of output, TC changes due to change in TVC. So, TC is also directly related to output level, first increases at increasing rate & then at decreasing rate. Hence, it is also a inverse S upward sloping curve. But, it also includes constant TFC. So, the curve has intercept on Y axis = TFC (it doesn't start from origin).
Answer: Supply curve - Increases rightwards
Market Price - Falls
Economic Profit - Decreases
Explanation: Perfect Competition market structure is with large number of buyers & sellers , homogeneous products & uniform prices , perfect information and free entry and exit.
'Free Entry and Exit' implies - no firm earns super normal (economic) profits or abnormal losses in long run. When firms are earning economic profits in short run, new firms enter (because of free entry) & the industry supply increase reducing price , which further reduces the super normal profits to normal profits in long run. Similarly - Abnormal losses make firms exit (freely), reduce supply & increase price , hence reducing abnormal losses & resuming normal profits.
Answer: (63, 50, 44)
Explanation:
Utility is the satisfaction that we derive as consumers when we consume or use a certain product.
Since Bundle A is strictly preferred to bundle B, and bundle B is strictly preferred to bundle C, it means that the value of Bundle A must be more than B and C while that of Bundle B must be more than bundle C.
Therefore, the correct option is B which is (63, 50, 44)
The formula is
I=prt
I interest paid 1120
p principle 32000
T time 4/12
R annual percentage interest rate?
Solve for r
R=I÷pt
R=1,120÷(32,000×(4÷12))
R=0.105×100
R=10.5%
Answer: customer will pay a sales charge
Explanation:
The statement which states that customer will have to pay sales charge in order to exchange shares within the family is not true. The fund family possesses an "exchange feature" at NAV. This means that the shares of one fund has the right to be redeemed and then reinvested in shares of another fund that is within the family without no sales charge.
For the customer that is exchanging Government bond Fund shares for the Growth Fund shares, tax event has occurred. Therefore, it will be expected that the customer's yield will reduce but that the capital gains will increase, because the person is moving from an "income" fund into a "growth" fund.
