A(n) increase in a firm's scale of production leads to lower average total cost when there are economies of scale.
When the company has excess production capacity in one or more geographic regions that would or else be idle because the number of two of a kind of branded footwear that company management is planning to produce is below full production capability.
Answer:
The answer is LIFO
Explanation:
LIFO is Last in First out. It means the Inventory that was purchased last goes out first.
In periods LIFO, cost of sales reflects the cost of goods purchased recently and the ending Inventory reflects the older goods.
In periods of falling prices, the costs of ending inventory are high, cost of sales are low and the gross profit are high.
Answer:
The correct answer is letter "B": The quantity demanded of hot dogs increases, and the demand for hot dog buns increases.
Explanation:
According to the demand theory, as long as the price of a product decreases the quantity demanded increases. The theory explains the relationship between the price and quantity demanded of a good or service within a market. That relationship is said to be <em>inversely proportional</em>.
In that case, if the price of the hot dogs is reduced by half, the quantity demanded is likely to increase. Supplementary goods such as hot dog buns are prone to see an increase in their demand.