i believe it is all but 2
Explanation:
<u>a.what happens to the price of coffee beans?</u>
In this case, when there is a phenomenon like a hurricane that destroys half the harvest, the supply of coffee beans consequently decreases, the quantity decreases and the price increases.
<u>b. What happens to the price of a cup of coffee? What happens to the total expenditure on cups of coffee?</u>
When the price of the main input for the production of coffee cups increases and the supply decreases, it appears as an increase in the price of a cup of coffee and a decrease in the amount of coffee cups available on the market.
As they have an inelastic demand, coffee cups with a higher price correspond to an increase in total coffee expenses.
<u>c.What happens to the price of a cup of donuts? What happens to the total expendiure on donuts?</u>
In this case, donuts and coffee are complementary, so when there is an increase in the price of coffee and a decrease in the quantity demanded, there is also a decrease in the demand for donuts. So if the demand for donuts decreases, their price also decreases and the total expenditure on donuts decreases.
Answer:
Short-run is a time limit during which at least one input can be fixed and other input quantities can be verified.
The long run is a time period in which all the inputs can be verified in quantities.
Explanation:
- Both the fixed and variable costs occur in the short term.
- There are no fixed costs in the long term.
- The combination of the output of a company results in the desired amount of the goods at the lowest possible cost is sustained by efficient long-term costs.
- The output changes variable costs. For instance, the employee's salaries and raw material costs are variable costs.
- Based on variable costs and the production rate, the short-run costs are increasing or falling. If a company manages its short-term costs well over time, the desired long-term costs and goals will more likely be achieved.
Answer:
C. Finished Goods Inventory has decreased.
Explanation:
Cost of goods manufactured (COGM) increases when finished goods inventory is <em>produced</em>, while cost of goods sold (COGS) increases when finished goods inventory is <em>sold</em>. If COGS has been increasing faster than COGM has been increasing, the company has been selling more goods than it has been producing. Therefore, it must have sold goods from its surplus of finished goods inventory. Thus, finished goods inventory has decreased.
For a merchandising company, the cost of goods sold, direct materials, and commissions are <u>variable costs</u>.
<h3>What is a variable cost?</h3>
A variable cost is the cost element that remains constant per unit while the total changes. Other examples of variable costs include direct labor, variable selling and administrative expenses, including commissions and shipping costs.
Thus, for a merchandising company, the cost of goods sold, direct materials, and commissions are all examples of <u>variable costs</u>.
Learn more about variable costs here: brainly.com/question/5965421
