Answer:
In economics, the marginal cost of production is the change in total production cost that comes from making or producing one additional unit. To calculate marginal cost, divide the change in production costs by the change in quantity.
Answer:
Maximum price= $11.9
Explanation:
Giving the following information:
Assuming a production level of 6,300 units:
Direct materials $ 4.20
Direct labor $ 4.30
Variable manufacturing overhead $ 3.40
The fixed overhead costs are unavoidable
Because the fixed overhead costs are unavoidable, we will concentrate on the variable costs.
The maximum price would be the total variable cost:
Total variable cost= 4.2 + 4.3 + 3.4= $11.9
Maximum price= $11.9
The resource of production called <em>natural resources </em>includes mineral deposits underground. Only the things that man hasn't made himself, but which are given by nature, can be considered natural resources.
Answer:
<em>Small changes in price can have big effects on the number of units sold and also on company profit</em>
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Explanation:
Small change in price will definitely have an effect on the amount of units sold due to a corresponding change in demand that will follow this change, and also will affect the amount of profit that the company generates. <em>This changes can either be positive or negative to the company</em>. Example is the increase in price of coca-cola might trigger customers into switching to pepsi-cola, resulting in a reduced demanded quantity which means less units are produced. The overall effect of these will leave the company with less profit.
