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3 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.

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Workshape Manufacturing has two classes of distributors: JIT distributors and non-JIT distributors. The JIT distributor places s

yulyashka [42]

Answer:

d. $672.41 per service call

Explanation:

The computation of the activity rate for servicing goods is shown below:

= (Total servicing good cost) ÷ (Total service calls)

= $195,000 ÷ 290

= $672.41 per service call

The total service call would be

= JIT distributors + Non-JIT distributors

= 200 + 90

= 290

All other information which is given is not relevant. Hence, ignored it

6 0

3 years ago

(LaVilla) LaVilla is a village in the Italian Alps. Given its enormous popularity among

garri49 [273]

Answer:

a) 120 skiers per day

b) 6.25% increase in revenue

Explanation:

a) If the average skier stays 10 days, the average turnover is 1/10 of the skiers per day, or 1200/10 = 120 skiers per day.

b) For a stay of n days, the average skier spends ...

50 +(n-1)30 = 20 +30n

and the average spending per day is ...

(20 +30n)/n = (20/n) +30

So, for a 10-day stay, the average skier spends in restaurants ...

20/10 +30 = 32 . . . . per day

And for a 5-day stay, the average skier will spend ...

20/5 +30 = 34 . . . . per day

The change in restaurant revenue is expected to be ...

(34 -32)/32 × 100% = 2/32 × 100% = 6.25%

Restaurant revenues will be 6.25% higher compared to last year.

8 0

3 years ago

Mia Lane bought a high-definition television for $7,500. Based on her income, she could afford to pay back only $600 per month.

lina2011 [118]

Answer:

$ 7,012.50

Explanation:

Please see attachment

6 0

4 years ago

Identify the reasons why the quantity demanded of a product increases as the price of that product decreases. a. as the price de

Brut [27]

Answer:

D) A and B

Explanation:

a. as the price declines, the real income of the consumer increases

b. as the price of product A declines, it makes it more attractive than product B

Hope this helps!

Ps. Don't click on those sketchy links.

Have a good day!

4 0

3 years ago

A company makes two products, A and B. A sells for $100 and B sells for $90. The variable production costs are $30 per unit for

Slav-nsk [51]

Answer:

True

Explanation:

Profit function would be maximised.

Profit = Revenue - Cost

Let units of both goods be = A ,B

Revenue per unit good A = 100

Revenue per unit good B = 90

Variable Cost per unit good A = 30

Variable Cost per unit good B = 25

Profit Function = (100 - 30)A + (90 - 35)B

= 60A + 65B

{The function is right without including 'average fixed cost' part of 'total cost' in the function because : average fixed cost is a constant & constant figure doesn't effect optimisation (via differentiation , ∵ d (c) = 0)

5 0

3 years ago