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2 years 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.

Learn more about Economies of scale here:

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A lender advertises 80% LTV conventional loans. 80% is applied to: Select one: a. Appraised value b. Selling price c. The buyers

AveGali [126]

The purchase price or appraised value, whichever is lower, is the correct option when considering loan-to-value ratio in mortgage lending

What does an 80% loan-to-value ratio mean?

The loan-to-value ratio means the percentage of the property worth that the borrower could receive as a loan from the financial institution, which means that the remaining percentage after having deducted the loan-to-value ratio from 100% would be financed by the borrower, which serves as a way to avoid default.

Ordinarily, the loan-to-value ratio is applied to the lower of the selling price or the appraised value of the property, but note that a selling price to one party is the purchase price to another, hence, option d is the most correct

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5 0

2 years ago

Seaside issues a bond with a stated interest rate of 10%, face value of $50,000, and due in 5 years. Interest payments are made

mars1129 [50]

Answer:

Total $46,319.9565

Explanation:

We need to calculate the value of the present value of the bond payment

and the maturity using the current market rate

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 2500 (50,000 x 0.10/2)

time 10 (5 years 2 payment per year)

rate 0.06 (12% annual --> divide by 2 to convert semiannual)

$2500 \times \frac{1-(1+0.06)^{-10} }{0.06} = PV\\$

PV $18,400.2176

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 50000

time 10

rate 0.06

$\frac{50000}{(1 + 0.03)^{10} } = PV$

PV $27,919.7388

PV bond interest payment $18,400.2176

PV maturity payment $27,919.7388

Total $46,319.9565

3 0

3 years ago

An online retailer uses complex data-mining software to evaluate the preferences and buying habits of its customers and makes de

rusak2 [61]

Answer: Analytics

Explanation:

The online retailer is applying analytics to evaluate buyers preferences and habits: this information gotten influences the decisions made by the retailer.

Analytics in decision making process occurs when a manager in an organization carefully analyses systematic statistical data to make decisions in the organization.

The use of analytics in decision making helps reduce errors and enables the manager make accurate decisions.

3 0

3 years ago

Fruitasia purchased land, a building, and equipment for $800,000. the estimated fair values of the land, building, and equipment

marishachu [46]

Given; Equipment and building = $800,000Fair value of the land = $100,000Fair value of the building = $700,000Fair value of the equipment = $200,000
Solution;
$800,000 x [$100,000/($100,000 + $700,000 + $200,000)] = $80,000.
The company would record the land of $80,000

6 0

3 years ago

When Lisa purchased her house, the mortgage lender required her homeowner's insurance to cover 100% of the loan amount. After ma

SOVA2 [1]

A) The cost to rebuild the house

This is due to the fact that there is no outstanding loan amount since the mortgage has been paid off.

8 0

3 years ago