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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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If an increase occurs in the demand for the output of industry A, we would expect all of the following to happen except:A. an in

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Answer:

The correct answer is option B.

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3 years ago

Lake Erie Company uses a plantwide overhead rate with machine hours as the allocation base. Next year, 790,000 units are expecte

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Answer:

Instructions are listed below.

Explanation:

Giving the following information:

790,000 units are expected to be produced taking 0.75 machine hours each.

<u>We weren't provided with enough information to solve the requirement. But, I will give the formulas necessary to guide an answer and a small example.</u>

<u>First, we need to calculate the total amount of machine-hours required:</u>

Total machine hours= 790,000*0.75= 592,500 hours.

Let us suppose that the estimated manufacturing overhead is $850,000.

To calculate the estimated manufacturing overhead rate we need to use the following formula:

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