Answer:
B) Fixed cost is the constant for a particular product and does not change as more items are made. Marginal cost is the rate of change of cost C(x) at the level of production x and is equal to the slope of the cost function at x.
Explanation:
Fixed costs do not change when the quantity of goods or services produced changes, that is why they are fixed (they do not move).
While marginal costs are the costs associated to producing one extra unit of output. They change as the total output changes.
Profit maximizing firms should increase their output level until the marginal cost equals the marginal revenue (revenue generated by selling one additional unit of output).
Answer:
$9,000
Explanation:
The cash flow statement is the financial statement where the cash flows from the various activities of a business are recorded. These activities include Operating, Investing and Financing. The statement may be shown using gthe direct or indirect method.
The operating activities include the changes to current assets and liabilities. Increases in assets (apart from cash) represents an out flow of cash while increases in liability represents and in flow of cash and vice versa.
The net cash flows from operating activities using the indirect method
= -5000 - 20,000 + 10,000 + 25,000 - 1,000 (all amounts in $)
= $9,000
This represents a net inflow.
Answer: The correct answer is "b) extinction punishment".
Explanation: This scenario typically illustrates the reinforcement contingency of <u>extinction punishment.</u>
<u>Because the company in deciding not to reward managers this time, is extinguishing the benefit they had, in the form of punishment for the poor performance of the company.</u>
Products whose demand rises when another product's price increases are called: Substitute goods
