A German business that makes millions of vehicle parts annually was able to lower its cost per unit as it boosted production. This serves as an example of the idea of economies of scale.
Cost advantages that businesses enjoy when production becomes efficient are known as economies of scale. By increasing production and reducing expenses, businesses can attain economies of scale. Costs are divided among more products, which causes this. Costs come in fixed and variable forms.
When it comes to economies of scale, the size of the business typically matters. Cost savings increase with business size. Both internal business and external economies of scale are possible. While external economies of scale are influenced by outside causes, internal ones are based on management choices.
Economies of scale result in cheaper per-unit costs for a variety of reasons. Production volumes are first increased through worker specialization and better technological integration. Additionally, decreased per-unit prices may result from larger advertising purchases, bulk orders from suppliers, or lower startup costs. Third, cost reduction is aided by dividing internal function costs among a greater number of manufactured and sold units.
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<span>The marginal propensity to consume is a metric
that quantifies the concept of increase in consumption with an increase in
income. Mathematically MPC is defined as:</span>
MPC = Change in consumption / Change in income
Purchase of goods and services is considered as
consumption, therefore:
Change in consumption = $16 billion
In the government’s perspective, taxes are
considered as income, therefore the problem ask us to find for the necessary change
in tax collection to maintain equilibrium GDP. Substituting the values in the
formula:
0.80 = $16 billion / Change in income
Change in income = $20 billion
<span>Therefore the government should increase the tax collection by $20
billion.</span>
Answer: 300, 350, 400, 450
Explanation:
a1 = first term = 300
d = common difference = 50
2nd term = a+d
= 300 + 50
= 350
3rd term = a + 2d
= 300 + 2(50)
= 300 + 100
= 400
4th term = a + 3d
= 300 + 3(50)
= 300 + 150
= 450
Therefore, the first four terms are 300, 350, 400, and 450.
<span>The situation in which the sales is shifted from selling strictly components to solving its customers' problems with more tailored offerings is an example of modified rebuy.
</span><span> The economic term modified rebuy describes the buying situation in which the buyer wants to reorder a product or service but seeks changes to terms, prices, suppliers or product specifications, but the product or service is the same. The buyer just reorders the product under different terms.</span>
Answer:
4.524%
Explanation:
Jackson's marginal tax rate = 22%
after tax return of Sundial Incorporated bonds = 5.8% x (1 - 22%) = 4.524%
since municipal bonds are not taxed by the federal government, in order to compare the yields we must calculate the after tax return of corporate bonds. On the other hand, federal bonds do not pay state and local taxes.