All categories

4 years ago

If average total cost is rising, then marginal cost is

Business

1 answer:

Shalnov [3]3 years ago

7 0

Answer:

a. greater than average total cost.

Explanation:

Average total cost is the cost of a unit output of goods that is being produced. Total Cost is the addition of all the cost of production which include total fixed cost and the total variable cost. Average Total cost is equal to total cost divided by total number of output.

Marginal Cost This is the change in the opportunity cost when an additional unit is added for production, it is the cost of producing one additional unit of goods.

Therefore, when the average cost of production is increasing, the marginal cost is greater than average cost, and when the average cost is decreasing the marginal cost is less than average cost. Also when the average cost is neither increasing nor decreasing, the marginal cost will be equal to average cost.

You might be interested in

Baxter Inc. has a target capital structure of 30% debt, 15% preferred stock, and 55% common equity. The company's after-tax cost

VashaNatasha [74]

Answer:

B) WACC 12.00000%

Explanation:

$WACC = K_e(\frac{E}{E+P+D}) + K_p(\frac{P}{E+P+D}) + K_d(1-t)(\frac{D}{E+P+D})$

Ke 0.15 (we are asked for the WACC if retained earnings are used, so we ould assing RE rate

Equity weight 0.55

Kp 0.11

Preferred Weight 0.2

Kd(1-t) (after-tax debt) 0.07

Debt Weight 0.3

$WACC = 0.15(0.55) + 0.11(0.15) + 0.07(0.3)$

WACC 12.00000%

4 0

3 years ago

) Beewell's net income for the year ended December 31, Year 2 was $197,000. Information from Beewell's comparative balance sheet

deff fn [24]

Answer:

C) $147,400

Explanation:

Year 2 Year 1

$512,000 $460,800 Common Stock

$960,000 $863,800 Paid-in capital in excess of par

$700,000 $592,800 Retained earnings

When the company issue new shares the values are recorded in the Common Stock accounts and in the Paid-in Capital in excess of par, the increase on this accounts indicates the value of sales:

$512,000 $460,800 = $51,200 Common Stock

$960,000 $863,800 = $96,200 Paid-in capital in excess of par

$51,200 + $96,200 = $147,400

5 0

3 years ago

Select the correct answer.

larisa [96]

Answer:

C. Sales promotion

Explanation:

Because you're giving good value and time and effort for doing it basically because that's being economical

3 0

3 years ago

Jansen Company’s general ledger showed a checking account balance of $25,120 at the end of May 2021. The May 31 cash receipts of

Alexxandr [17]

Answer:

$2,000

Explanation:

Use the format

Jansen Company’s

Bank reconciliation as of May 31, 2013.

Balance as per Bank Statement

Add Outstanding Checks

Less Unpresented Checks

Balance as per Cash Book

5 0

3 years ago

Which theory suggests that a country should export those goods and services for which it is more productive than other countries

pogonyaev

Answer:

The theory of absolute advantage

Explanation:

The theory of absolute advantage is a quantity-based approach to measuring the productivity of nations with respect to their output in international commercial dealings.

The theory was an Adam Smith's submission that emphasizes that nations of the world should specialize in producing goods and services that they are most productive.

The theory failed to address a major problem that in gaining a benefit another alternative benefit is lost,hence nations should also factor in the benefits they lose when they specialize in producing certain products.

7 0

3 years ago