Answer: Economies of scale pertain to the long run only.
Explanation:
Economies of Scale is a long run phenomenon and is defined as the cost advantage that a firm experiences as a result of an increase in its output. The benefit arises as a result of the inverse relationship between quantity produced and per-unit fixed cost. The higher the quantity of output that are produced, the lower the per-unit fixed cost.
Economies of scale leads a fall in the average variable costs with an increase in the level of output. This is as a result of synergies and operational efficiencies which comes into place due to the increase in the scale of production. Economies of scale is a vital concept as it shows the competitive advantages big firms have over the small firms.
Answer:
the rigt answer is A.
Explanation:
One of the main functions of the central bank is to manage and protect gold and foreign exchange reserves in the country.
Answer and Explanation:
Old equipment=2.5 mins per serving bowl
New equipment=1.5 mins per serving bowl
With old equipment, in one hour Eddy Jones can produce 60/2.5= 24 serving bowls
With new equipment, in one hour Eddy Jones can produce 60/1.5= 40 serving bowls
With old equipment, in 8 hours Eddy Jones can produce 24*8=192 serving bowls
With new equipment, in 8 hours Eddy Jones can produce 40*8=320 serving bowls
Therefore in 8 hours with new equipment Eddy Jones will produce 320-192= 128 more serving bowls than with old equipment.
Answer:
Which fact supports the idea that renting is a good option for living in a place for a short period of time?
The idea about renting is a good option as far is for a short period of time which enables one to increase savings which would lead to accumulation of more savings before getting ones permanent residence.
Explanation:
Answer:
5.67 years
8.99 years
Explanation:
The relationship between future value, present value, interest rate as well as the duration of an investment(n) are depicted below with future value formula:
FV=PV*(1+r)^n
FV=future value( let us assume it is $10,000)
PV=$5,000( half of the present value)
r=13% interest rate
n=duration of the investment=the unknown
10,000=5000*(1+13%)^n
10,000/5000=1.13^n
2=1.13^n
take log of both sides
ln(2)=n ln(1.13)
n= ln(2)/ln (1.13) = 5.67 years
Triple of original investment:
FV=PV*(1+r)^n
FV=future value( let us assume it is $15,000)
PV=$5,000(one-third of the present value)
r=13% interest rate
n=duration of the investment=the unknown
15,000=5000*(1+13%)^n
15,000/5000=1.13^n
3=1.13^n
take log of both sides
ln(3)=n ln(1.13)
n= ln(3)/ln (1.13) = 8.99 years
