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1 year ago

Businesses benefit from economies of scale when the cost of an investment can be?

Business

1 answer:

Katarina [22]1 year ago

6 0

Businesses benefit from economies of scale when the cost of an investment can be Economies of scale.

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

The cost advantages that businesses experience as a result of their size of operation are known as economies of scale, and they are often quantified by the amount of output generated in a given amount of time. Scale can be increased when the cost per unit of output decreases. The phenomenon known as economies of scale occurs when the scale or magnitude of the production produced by a firm increases while the average cost per unit of output decreases.

Because they can give businesses a competitive edge in their industry, economies of scale are crucial. Therefore, businesses will always aim to achieve economies of scale, just as investors would look for them when choosing investments. The costs are distributed across a wide range of products, an organisation that enjoys economies of scope has lower average costs. Because costs drop as production volume rises, a business that enjoys economies of scale has a lower average cost.

Hence, Businesses benefit from economies of scale when the cost of an investment can be Economies of scale.

To learn more about Economies of scale refer to:

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The budgeting process does not involve which of the following activities?

Vera_Pavlovna [14]

Answer:

Increase in sales by increasing marketing efforts.

Explanation:

A budget can be defined as a financial plan which is used to make an estimate of the amount of amount that goes in and comes out. It can also be described as a financial plan that controls expensenses, resources, debts within a specific period of time.

Budgeting is carried out inorder to maintain and control an individual or an organization income so as to avoid wastage of resources. Budgeting keeps an individual or organization focused on achieving their different goals and objectives.

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3 years ago

Cost of Preferred Stock Torch Industries can issue perpetual preferred stock at a price of $57.00 a share. The stock would pay a

labwork [276]

Answer:

the company’s cost of preferred stock is 10.53%.

Explanation:

given information:

perpetual preferred stock = $57.00

a constant annual dividend = $6.00

to determine the company’s cost of preferred stock we can use the following formula

$cost of preferred stock = \frac{ annual dividend}{preferred stock}$

$= \frac{6.00}{57.00}$

$=10.53$ %

therefore, the company’s cost of preferred stock is 10.53%.

8 0

3 years ago

Firm A currently dumps 157 tons of chemicals into the local river. Firm B currently dumps 183 tons of chemicals into the local r

Kruka [31]

Answer:

$20,670

Explanation:

Firm A Firm B

Actual Dumping 157 183

Pollution Permits Allotted <u> 11 </u> <u> 11 </u>

Reduction Required 146 172

Cost of Dumping 1 ton $160 $65

As the cost of dumping to Firm A is $160 which is higher than the marginal cost of dumping of Firm B which is $65, so it is better that Firm B take benefit from it by selling it at $65. So now total tons require dumping is 318 tons (146 + 172).

Total cost of reducing pollution = 318 tons * $65 = $20,670

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3 years ago

Your company plans to spend $2,350,000 in cash to build a plant that will produce benefits with a total present value of $4,575,

Leto [7]

Answer:

$200,000

Explanation:

Data provided in the question:

Amount willing to spend in cash to build the plant = $2,350,000

Total present value of the benefits produced = $4,575,000

Purchasing cost of the land = $900,000

Present value of the land = $2,025,000

Now,

Total present value of investment

= Amount spent to build the plant + Present value of the land

= $2,350,000 + $2,025,000

= $4,375,000

Therefore,

The net present value of the proposed plant

= Total present value of the benefits - Total present value of investment

= $4,575,000 - $4,375,000

= $200,000

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3 years ago

Core self-evaluations (CSEs) represent a broad personality trait comprising four positive individual traits: (1) self-efficacy,

ryzh [129]

Answer: True

Explanation:

Thw above statement is true. Core self-evaluations (CSEs) is made up of positive individual traits which are self-efficacy, self-esteem, locus of control, and then emotional stability.

There individual traits are all vital in the accomplishment of a particular objective. Individuals that have high self-evaluations believe in themselves and are known to be effective.

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3 years ago