1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
worty [1.4K]
3 years ago
15

The law of diminishing marginal returnsa. explains why the average total cost, average fixed cost and marginal cost curves are U

-shaped in the short runb. causes average total costs to rise at a decreasing rate as output increasesc. explains why the average total cost and marginal cost curves are U-shaped in the short rund. causes the difference between average total cost and average variable cost to get smaller as output increases
Business
1 answer:
Novosadov [1.4K]3 years ago
8 0

Answer:

c) explains why the average total cost and marginal cost curves are U-shaped in the short run.

Explanation:

According to the law of diminishing returns, when one input variable is increased, the result is seen in the increase in the output. At some point in the production, when an additional factor is added, the output increases but in smaller return. One factor remains fixed in the process of diminishing return. The variable factor is increased at any point of production which do not prove much productive.

You might be interested in
Amy's Drive-Thru, a fast food facility near a college campus, offers healthy, sustainably grown vegetarian and vegan fast-food a
Tems11 [23]

Answer: Focused differentiation strategy

Explanation: In focused differentiation strategy the focus of the entity providing the service is to make their product suitable and as per the expectations of the target market , which is very narrow in size and the requirements of the customers are very unique in such kind of target markets.

In the given case, as we know that vegetarian food is not very popular among the college students, since the preference towards health is usually seen in the age group of 25 to 35 working individuals.

Thus, the customer base of amy is very narrow.

Hence, we can conclude that Amy's is using focused differentiation strategy

7 0
3 years ago
Three people were fired at abc corporation. eugene was fired because he was incompetent. rita was fired because she was unethica
Eddi Din [679]
In the given situation, the systems property illustrated is called equifinality. The case says that there three people were fired at ABC Corporation. Eugene was fired because he was incompetent. Rita was fired because she was unethical. Kayla was fired because of economic conditions. Equifinality in business implies that firms may establish similar competitive advantages based on substantially different competencies. The concept is that there are many paths to the same end. The idea states that there are multiple ways to reach a final goal. In open systems, equifinality states that in open systems a given end state can be reached by many potential means.
5 0
2 years ago
5,000 7.5 percent coupon bonds outstanding, $1,000 par value, 19 years to maturity, selling for 105 percent of par; the bonds ma
vitfil [10]

Answer:

10.53%

Explanation:

WACC = wE*rE + wP*rP + wD*rD(1-tax)

<u>Market values;</u>

Debt = 1.05 *5,000*1000 = 5,250,000

Preferred stock = 15,500 *107 = 1,658,500

Common equity = 105,000 *63 = 6,615,000

Total market value = 13,523,500

wE = 6,615,000/ 13,523,500 = 0.4891

wP= 1,658,500/13,523,500 = 0.1226

wD = 5,250,000/13,523,500 = 0.3882

<u>Cost of capital;</u>

Cost of common equity, rE using CAPM;

rE = 0.06 + (1.13*0.09) = 0.1617

rE = 16.17%

Cost of preferred stock = 6%

Cost of debt

using a financial calculator, input the following; N= 38, PV = -1050, PMT = 37.5,

FV =1000, then CPT I/Y = 3.51% . So annual rate = 3.51% *2 = 7.02%

WACC = (0.4891*0.1617) +(0.1226* 0.06) + [0.3882 *0.0702(1-0.31)]

WACC = 0.0791 + 0.007356 + 0.0188

WACC = 0.1053 or 10.53%

4 0
3 years ago
Stockholders' equity of Eden Industries totals $63,000 in combined common stock and retained earnings. Assuming common stock and
TiliK225 [7]

Answer:

Under classified balance sheet, common stock and retained earnings are reported separately

Explanation:

Under equity section of balance sheet, common stock and retained earnings are line items i.e they are reported under equity section of balance sheet separately.

The total of these two should also be separated i.e the total is a line item also. And this forms the total equity provided there are no other line items for the for the period again.

6 0
2 years ago
Ocean co. just paid a dividend of $2 per share out of earnings of $4 per share. if the book value per share is $25, what is the
BaLLatris [955]

The sustainable growth rate (sgr) is 8 percent.

<h3><u>What is Sustainable growth rate?</u></h3>
  • The highest rate of growth that a business or social enterprise may sustain without using more equity or debt to fund expansion is known as the sustainable growth rate (SGR).
  • In other words, it is the rate at which the business may expand without borrowing money from other sources by using only its own internal earnings.
  • The SGR aims to increase sales and revenue while reducing financial leverage.

A corporation can avoid financial trouble and excessive leverage by achieving the SGR. Get or compute the company's return on equity (ROE) first. By comparing net income to shareholders' equity, ROE assesses a company's profitability.

Know more about sustainable growth rate with the help of the given link:

brainly.com/question/5452967

#SPJ4

6 0
1 year ago
Other questions:
  • Select the phrase that correctly completes the statement.
    14·1 answer
  • At the end of January, Mineral Labs had an inventory of 895 units, which cost $12 per unit to produce. During February the compa
    14·1 answer
  • At many amusement parks, customers who enter the park after 4 p.m. receive a steep discount on the price they pay. This is a typ
    15·1 answer
  • Belfry Company makes special equipment used in cell towers. Each unit sells for $410. Belfry produces and sells 12,700 units per
    12·1 answer
  • On the end-of-period spreadsheet, Supplies has a balance of $2,000 in the Unadjusted Trial Balance Debit column and an adjustmen
    5·1 answer
  • Franklin Manufacturing provided the following information for the month ended March​ 31: Sales Revenue $ 15 comma 000 Beginning
    13·1 answer
  • I need help on the first question , it's asking more or less​
    8·1 answer
  • brainstorming solicits the help of multiple people to formulate concepts and identify ways to bring them to market. true or fals
    5·1 answer
  • If a company incorrectly records cash received for services to be provided in the future with a debit to cash and a credit to sa
    13·1 answer
  • Reason for a bimodel distribution
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!