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1 year ago

A firm can produce two products with the cost function c(q1, q2) = 10 5q1 5q2 - 0. 2q1q2. the firm enjoys:____.

Business

1 answer:

Llana [10]1 year ago

6 0

The correct option for The firm enjoys economies of scope.

economies of scope exist if C(Q1, 0) + C(0, Q2) > C (Q1, Q2) (10 + 5Q1) + (10 + 5Q2) > 10 + 5Q1 + 5Q2 - 0.2Q12Q2.

Economies of scope is an economic theory stating that the average total cost of production decrease as a result of increasing the number of different goods produced. For example, a gas station that sells gasoline can sell soda, milk, baked goods, etc.

Economies of scope is a financial precept wherein a commercial enterprise's unit value to supply a product will decline because the form of its products will increase. In different words, the extra one of kind-but-comparable goods you produce, the lower the total cost to provide each one may be.

Your question is incomplete. Please read below for the missing content.

A firm can produce two products with the cost function C(Q1, Q2) = 10 + 5Q1 + 5Q2 - 0.2Q1Q2. The firm enjoys:

A. economies of scale in the two products separately.

B. economies of scope.

C. cost complementarity.

D. economies of scale in the two products separately and cost complementarity.

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UkoKoshka [18]

Answer:

Increases; Ambiguous effect on equilibrium quantity

Explanation:

This situation states that the supply of hotel rooms decreases and the demand for hotel rooms increases due to the hurricane, so this change will shift both the supply curve and the demand curve in the hotel rooms market.

This will shift the supply curve leftwards and demand curve rightwards, therefore as a result, there is an increase in the equilibrium prices and the effect of this change on the equilibrium quantity is ambiguous because that will be dependent upon the magnitude of the shifts of demand and supply curve.

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2 years ago

Present value with periodic rates. Sam Hinds, a local dentist, is going to remodel the dental reception area and add two new w

rusak2 [61]

Answer:

What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year)

$2,820.62

and monthly payments (12 per year)?

$531.13

Compare the annual cash outflows of the two payments.

total semiannual payments per year = $2,820.62 x 2 = $5,641.24
total monthly payments per year = $531.13 x 12 = $6,373.56

Why does the monthly payment plan have less total cash outflow each year?

The monthly payment has a higher total cash outflow ($6,373.56 higher than $5,641.24), it is not lower. Since the compounding period is shorter, more interest is charged.

What will Sam have to pay for this equipment if the loan calls for semiannual payments (2 per year)?

$2,820.62 x 12 payments = $33,847.44 ($25,000 principal and $8,847.44 interests)

Explanation:

cabinet cost $25,000

interest rate 10%

we can use the present value of an annuity formula to determine the monthly payment:

present value = $25,000

PV annuity factor (5%, 12 periods) = 8.86325

payment = PV / annuity factor = $25,000 / 8.8633 = $2,820.62

present value = $25,000

PV annuity factor (0.8333%, 60 periods) = 47.06973

payment = PV / annuity factor = $25,000 / 47.06973 = $531.13

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3 years ago

Governments would decrease government expenditures to fight a/an ______________ gap. Due to this change in G, the budget balance

dlinn [17]

Governments would decrease government expenditures to fight an inflationary gap and due to this change in G, the budget balance (BB) would reduce.

<h3>What is budget?</h3>

It should be noted that a budget simply shows the revenue and expenditure for a period of time.

In this case, governments would decrease government expenditures to fight an inflationary gap and due to this change in G, the budget balance would reduce.

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2 years ago

On January 1, Greenview Company adopted the dollar-value LIFO method. The inventory cost on January 1 was $112,000. On December

Mumz [18]

Answer:

125,200

Explanation:

Adjust inventory to base year prices:

= Cost of ending inventory ÷ cost index for the year

= $136400 ÷ 1.1

= $124,000

Current year LIFO layer:

= Adjust inventory to base year prices - Cost of beginning inventory

= $124,000 - $112,000

= $12,000

Inventory to be shown:

= Add the new LIFO layer at end of period prices to prior year LIFO inventory

= (112,000 × 1) + (12,000 × 1.1)

= 112,000 + 13,200

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3 years ago

Armando has a summer job hand-dyeing shirts that will be sold on the boardwalk. He is paid $5.00 per shirt. Armando is being pai

netineya [11]

Answer:

Pay for Performance

Explanation:

Pay for Performance is the strategy which is being referred to as the pay strategy where the evaluations or computations of the individual or the business performance have the influence on the pay amount bonuses or the increases provided to each and every employee.

So, in this case, the person is paid on the performance of the person as he will be paid on the $5 per shirt.

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3 years ago