Answer:
with the third doubling, the AVC = $9.11 per unit
Explanation:
The average variable cost (AVC) decreases by 10% with each doubling of cumulative output:
<u>Production level in units</u> <u>AVC per unit</u>
1,000 $12.50 per unit
2,000 $11.25 per unit
3,000 $10.13 per unit
4,000 $9.11 per unit
Answer:
The individual is able to get to a lower level of utility
Explanation:
Answer:
Explanation:
X - number of units sold
Total cost for production = 1,500,000 + 1600X
Total cost for purchasing = 2000X
a. For 4000 units sold
Total cost for production = 1,500,000 + 1600 * 4000 = $7,900,000
Total cost for purchasing = 2000* 4000 = $8,000,000
In this case producing is cheaper. Therefore, it is better to produce
b. Y - break-even point
Then : 1,500,000 + 1600 * Y = 2000* Y
So 1,500,000 = 400 Y
Y = 3750
At №of units less than 3750 purchasing will be the better option
And above 3750 producing will be the better option
Answer:
Option B.
Explanation:
Employing internal based resources gives a better competitive edge to an organisation as those resources are already in place. This eliminates extra cost of getting new funding or resources as in option A.
GDP is the total market value of all final goods and services produced within a country in a given period of time.