Answer:
Average fixed cost to produce 8,000 specialty pizza was $2
Explanation:
The computation of the average fixed cost is shown below:
Average fixed cost = (Total fixed cost) ÷ (number of pizzas produced)
where,
Total fixed cost = Total cost - variable cost
= $40,000 - $24,000
= $16,000
And, the number of pizzas produced is 8,000
Now put these values to the above formula
So, the value would equal to
= $16,000 ÷ 8,000
= $2
Answer:
D. Have unlimited economic wants, but limited resources
Explanation:
Economics studies human behaviour in relation to ends and scarce means. Wants are unlimited but the resources to satisfy these wants are limited hence the resources are used to meet the unlimited wants in order of importance (scale of preference).
The wants forgone are known as the opportunity cost of the wants that are satisfied with the limited resources.
Hence a recurring theme in economics is that people have unlimited economic wants, but limited resources.
Answer:
Kate will continue to operate in the short-run but plan on she will exit the business in the long-term
Explanation:
Kate's decision should be guided by her business's performance in terms of profitability. Kate is selling her meal at $5, but her total cost of serving the meal is $5.20. It means the business is operating at a loss.
Kate must start plantation on how she will leave that business. She may continue operating but only for a short while. Soon, she will find it hard to stay open because the business is loss-making. Kate will, therefore, continue operations in the short run. In the long term. Kate must plan on exiting the business.
The appropriate response is fantasy. A fantasy is a circumstance envisioned by a person that communicates certain yearnings or goes for the piece of its maker. Fantasy at times include circumstances that are exceedingly far-fetched, or they might be very practical. Dreams can likewise be sexual in nature.
Answer:
Option C.
Current liabilities, $420,000;
Long-term Debt, $1,260,000.
Explanation:
The reason is that the amount that will be paid within the next 12 is current liabilities, so the amount $420,000 is current liability as it will be paid within the next 12 months. So the remainder of the amount that is not payable in the next 12 months is long term liability.
Long Term Liability = $1,680,000 Total Payable Amount - $420,000 Current Liability
Long Term Liability = $1,260,000
