Answer:
a) a downward shift in the AFC curve
Explanation:
AFC = Average Fixed Cost, AVC = Average Variable Cost, MC = Marginal Cost
Average Fixed Cost is defined as the fixed cost of production divided by the quantity produced. Mathematically given as:
Average Fixed Cost = Fixed Cost ÷ Quantity
AVC = FC ÷ Q
Average Variable Cost is defined as the variable cost of production divided by the quantity produced. Mathematically given as:
AFC = VC ÷ Q
Marginal Cost is defined as the cost incurred for an additional unit to be produced. Mathematically given as:
MC = ΔC ÷ ΔQ
The firm discovered a more efficient technology implies that the cost of production is reduced. The result of this is that the fixed cost (FC) is reduced and consequently, the AFC is reduced as well. Hence, the AFC curve shifts downward. We therefore see that a reduction in fixed costs (due to the discovery of a more efficient technology) results in the AFC curve shifting downwards
<u>Hence, Option A (a downward shift in the AFC curve) is the correct answer </u>
A natural monopoly, such as a local electricity provider, is the result of long run average total costs declining continuously as output increases. The correct option among all the options that are given in the question is option "3". The initial cost of power generation and power distribution cost is high. Once the generation starts and the number of consumer increases, the average cost starts declining.
Answer and Explanation:
Year 1 Dividend = 1.04
Year 2 Dividend = 1.08
Year 3 Dividend = 1.12
Year 3 Sale of Stock = 14.62
Year 1 Total Cash Flow = 1.04
Year 2 Total Cash Flow = 1.08
Year 3 Total Cash Flow = 15.74
The above is referred to Net cash flow. Net cash flow to the difference between an organization's trade inflows and surges out a given period. In the strictest sense, net income alludes to the adjustment in an organization's money adjust as point by point on its income explanation. Cash flow is the cash that comes in and leaves an organization. It is the era of salary and the installment of costs. Money inflows result from either the era of income through the offering of products and enterprises, cash acquired, or cash earned through ventures.
