Answer: No. She turns away business when the cost of an additional unit exceeds the income from it.
Explanation:
In order to maximize production, the optimal point at which Hester should wash cars is the point where marginal revenue equals marginal cost. Marginal cost should not be above marginal revenue because it would mean that a marginal loss is being made.
At the 101st car, Hester would make a marginal loss of $0.05 because the cost of $10.05 to wash exceeds the revenue of $10.00 that she charges the customer. She should therefore not accept this or additional business because it will lead to her incurring losses.
Answer:
<em>Inaccurate</em>
Explanation:
<em>The information that was given to Alex Timbers who was a wood supplier that furniture manufacturing company requires teak wood, this information was </em><u><em>inaccurate</em></u><em>.</em>
Because we can see in the scenario which is mentioned in the question that the quality specialist of that furniture manufacturer company observes that the logs that was sent by Alex Timbers are very big, as the company itself ordered for teak wood, and we know that teak wood is very big. So, we can say that information provided by the company was inaccurate.
Answer:
30.8
Explanation:
The solution of factor-rating score for Ling Services is provided below:-
Factor-rating score = (Weight for Factor A × Rating for Factor A) + (Weight for Factor B × Rating for Factor B) + (Weight for Factor C × Rating for Factor C)
= (0.50 × 30) + (0.20 × 46) + (0.30 × 22)
= 15 + 9.2 + 6.6
= 30.8
So, we have calculated the factor-rating score for Ling Services by using the above formula.
Answer:
c) a firm does not have sufficient time to change the level of use some of its inputs.
Explanation:
The definition of short-run in economics is not a term to be used for a specific certain period of time but it means that the period of time is too short that the firms cannot change the level they are using of some of their inputs or costs. It means they do have fixed costs they cannot change. For example, all machinery installed, a yearly rent paid, electricity or others that the firm cannot change unless there is sufficient time. In a short period of time, it will have those costs anyway. The firm cannot change the level of that input. And it is short run of at least one input. It may be many. But it is not necessary to have all inputs unchanged to consider that period of time as short-run.
However, firms can change level of inputs if they have more time. That is cost the long run. All costs are variable costs when we are in long run.
