Answer:
c.
close their communication
Explanation:
edge :)
Answer:
The variable cost per unit is $25.20
Total Fixed Cost is $35380
Explanation:
a.
The high-low method is used to separate mixed cost and give the variable component per unit in the mixed cost.
We take the highest and lowest cost and related activity level.
The Variable cost per unit = (100900 - 63100) / (2600 - 1100)
VC per unit = $25.20
b.
The total fixed cost is,
Total Cost at 1100 units = 63100
Variable cost at 1100 units = 25.20 * 1100 = 27720
Total fixed cost = 63100 - 27720 = $35380
Answer:
The answer is option A)
In order to continue operating, in the long-run a firm must A) Charge a price equal to its AVC
Explanation:
In order to continue operating, in the long-run a firm must charge a price equal to its Average Variable cost AVC.
This is because, a long run is a period of time in which all factors of production and costs are variable.
Over the long run, a firm will search for the production technology that allows it to produce the desired level of output at the lowest cost. If a company is not producing at its lowest cost possible, it may lose market share to competitors that are able to produce and sell at minimum cost.
<span>This means that:
-the value of output in 2015 was around $17.3 trillion
-total income in 2015 was around $17.3 trillion
-total spending in 2015 was around $17.3 trillion
Value of output and total spending has basically similar meaning because they account for the total amount required to produce all output/product within the period.
Assuming that it's all gonna be sold, the total income will be at least close to the amount needed for production because the nominal GDP is evaluated at current market prices.</span>
