The principle of increasing marginal cost implies what?

1 answer:

7 0

That there is direct relationship between price and quantity. Marginal cost is the cost of producing an additional unit of a good or service. Generally, marginal cost rises on each successive unit produced. A producer is willing to increase production only if he or she receives a higher price for the additional units produced. If price falls, the cost of producing the good will be more than the price the seller receives, and he or she will cut back production.

You might be interested in

If the hourly wage of German workers is $6, the hourly wage of Canadian workers is $10, and German workers produce half as much

inessss [21]

Answer:

D) Canada since the cost per unit of output will be lower.

Explanation:

A German worker earns $6 per hour with a X productivity, we can assume X = 10 units, so the labor cost in Germany = $6 / 10 units = $0.60 per unit

A Canadian worker earns $10 per hour with a 2X productivity, we can assume X = 10 units, so the labor cost in Canada = $10 / 20 units = $0.50 per unit

Canadian direct labor is 20% more efficient than German labor.

6 0

3 years ago

Although the perpetual inventory system updates accounting records after each sale, a physical count is necessary at year-end to

vivado [14]

Answer:

customer theft; spoilage.

Explanation:

A perpetual inventory system is a type of inventory management that continuously records in real-time the amount of inventory sold or purchased through the use of enterprise software or technological software applications such as a point of sale (POS).

Under a perpetual system of inventory, updates of the journal entry for cost of goods sold or received would include debiting accounts receivable and crediting sales immediately as it is being made or happening. The advantage of the perpetual system of inventory over the periodic system of inventory is that, it ensures the inventory account balance is always accurate provided there are no spoilage, customer theft, etc.

4 0

3 years ago

Which of the following is a benefit of doing business with an online bank? A. 24 hours/7 days a week business hours

abruzzese [7]

The correct answer is a

4 0

4 years ago

Read 2 more answers

Sandhill Inc. acquired 10% of the 420,000 shares of common stock of Schuberger Corporation at a total cost of $15 per share on J

Tasya [4]

Answer:Please see explantion colmn for answers

Explanation:

A) Journal entry for Edelman