Answer:
Economic profit will be $40
So option (d) will be correct option
Explanation:
We have given number of units produced = 20 units
Price of per unit = $10 per unit
So revenue = 20×$10 = $200
Revenue :20 units * $10 = 200
Fixed cost is given $100
Variable cost: 20 units ×$3 = 60
So total cost= Fixed cost + Variable cost = 100 + 60 =$160
So economic profit = Revenue - Total cost = 200 - 160 = $40
So option (d) will be correct answer
Answer:
Effect : Increase in Break Even units by 3,750 units to 18,750 units
Explanation:
Break even point is the level of activity at which a firm makes neither a profit nor a loss
Break even Point (Units) = Fixed Costs ÷ Contribution per unit
where,
Contribution per unit = Selling price per unit - Variable Costs per unit
= $12 - $8
= $4
Therefore,
<u>Before Increase</u>
Break even Point (Units) = $60,000 ÷ $4 = 15,000
<u>After Increase</u>
New Contribution = $12 - ($8× 1.10)
= $3.20
Therefore,
Break even Point (Units) = $60,000 ÷ $3.20 = 18,750
Answer: B) The longer the cash cycle, the more likely a company will need external financing.
Explanation:
The cash cycle refers to the amount of time it would take a company to be able to convert the goods that it has in inventory to actual cash. If this cycle is long, then the company will have less cash than it needs because it is not raising cash fast enough.
To be able to fund operations therefore, the company might be forced to seek external financing.
Answer:
The correct answer is letter "B": Synergy.
Explanation:
Synergy is the belief that the whole is more than the sum of all its parts. In Business, synergy implies that the whole organization is more important than the individual effort of the employees. This approach aims to let workers know that their joint work is more valuable than their isolated performance.
Answer:So far we have learned to measure real GDP, but how do we end up with that real GDP? Of all of the different amounts of national income and price levels that might exist, how do we gravitate toward the one that gets measured each year as real GDP?
In short, it is the interaction of the buyers and producers of all output that determines both the national income (real GDP) and the price level. In other words, the intersection of aggregate demand (AD) and short-run aggregate supply (SRAS) determines the short-run equilibrium output and price level.
Once we have a short-run equilibrium output, we can then compare it to the full employment output to figure out where in the business cycle we are. If current real GDP is less than full employment output, an economy is in a recession. If current real GDP is higher than full employment output, an economy is experiencing a boom. If the current output is equal to the full employment output, then we say that the economy is in long-run equilibrium. Output isn’t too low, or too high. It’s just right.
Explanation: hope this helps
