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1 year ago

Economies of scale imply that within some range one can increase the size of operation and?

1 answer:

3 0

Economies of scale imply that within some range one can increase the size of operation and the average total cost will go down.

<h3>What is Economies of scale?</h3>

In microeconomics, economies of scale refer to the cost advantages that businesses experience as a result of their size of operation.
These cost advantages are often quantified by the amount of output generated in a given amount of time. An expansion in scale is made possible by a drop in the cost per unit of output.
There are two different kinds of economies of scale: internal and external.
When compared to external economies of scale, which arise as a result of more significant developments outside the organization, internal economies of scale are firm-specific or created inside.
Despite the fact that both lead to lowering marginal costs of production, the overall consequence is the same.

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How does inclusivity practised inclusivity in a private company.

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2 years ago

Consider the futures contract written on the S&P 500 index and maturing in one year. The interest rate is 4.2%, and the futu

Anarel [89]

Answer:

$1,534.372

Explanation:

The computation of the expected level of the index in one year is shown below:

= Current index level × 1 + expected rate of return on the market - expected future value of the dividend paid over the next year

= $1,433 × (1 + 8.4%) - $19

= $1,553.372 - $19

= $1,534.372

We simply applied the above formula so that the expected level of the index in one year could come

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3 years ago

A person has just been awarded an income increase to offset the effects of an increase in the overall cost of living in his coun

ArbitrLikvidat [17]

The person's new salary based on the new CPI of 112 should be $30,545.

<h3>What is the consumer price index (CPI)?</h3>

The Consumer Price Index (CPI) is an aggregate measure of the average price changes over time for a market basket of consumer goods and services. The index is used by businesses, governments, and individuals to gauge the inflation trend in the economy.

Data and Calculations:

Old CPI = 110

New CPI = 112

Old salary = $30,000

New salary = $30,545 ($30,000/110 x 112)

Thus, the person's new salary based on the new CPI of 112 should be $30,545.

Learn more about the consumer price index (CPI) at brainly.com/question/24888747

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1 year ago

The burden of a tax is shared by producers and consumers. Under what conditions will consumers pay most of the tax? Under what

juin [17]

Answer:

The correct answer is option C.

Explanation:

Imposition of tax causes the market equilibrium price to increase. This creates a tax wedge by increasing the price paid by the buyer and reducing the price received by the seller.

So the burden of tax is shared by both buyers and sellers. Who will share most of the burden depends on their elasticity.

If the demand is more inelastic, consumers will share most of the burden. If the supply is more inelastic, producers will bear most of the burden.

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3 years ago

Philip Morris bought Miller Brewing and launched low-calorie beer, at a time when consumers had the impression that low-calorie

Olenka [21]

Answer: Points of indifference

Explanation: Point of indifference can be defined as that level of EBIT at which two alternative financial plans have same amount of net income. It is used by managers as an evaluating tool, when it comes to choose between two cost structures which are alternative of one other.

In the given case, the company must have build point of indifference before launching of new product, and must have expected higher profits than normal beer.

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2 years ago