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3 years ago

If marginal cost is greater than average total cost, then

Business

1 answer:

Ber [7]3 years ago

5 0

Answer:

d. the average total cost is increasing.

Explanation:

The average total cost if the average cost of producing one unit, where as the marginal cost if the additional cost of producing an additional unit, so when the marginal cost is greater than the average total cost, it means that producing new units will drive the average total cost up because the cost to produce one more unit is more than the average total cost. This means that the new unit being produced costs more than the previous units produced if we take an average. We can also prove this mathematically.

If a factory produces 100 units, at a total cost of 10,000.

The average total cost if 10,000/100=100

If the marginal cost is greater than the average cost for example it is 150 then the total cost is 10,000+150=10,150

Also the average total cost will be 10,150/101=100.49

This shows that when the marginal cost is greater than average total cost the average total cost is increasing.

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Money that has been or will be paid regardless of the decision whether to proceed with the project is:

bezimeni [28]

Answer:

Sunk costs.

Explanation:

Sunk costs refers to historical funds spent or incurred that cannot be recovered. Such costs are considered irrelevant during decision making which impacts on the business's future as they present no influence on present or future prospects.

Example

ABC investors decide to acquire land and develop residential houses at a location X. This decision is informed on the fact that the government had recently enacted a policy that led to an increase in demand for residential properties in that location. 6 months into construction of the residential houses, the government reviews and rescinds the policy. This leads to a sharp decline in property values in location X. ABC investors had already incurred 10 million dollars in the project. The 10 million dollars is considered sunk cost.

Sunk costs are the opposite of relevant costs because they can't be changed or recovered, as they've been spent or contracted in the past already. Hence, relevant cost are relevant for decision-making purposes but not sunk costs.

Hence, money that has been or will be paid regardless of the decision whether to proceed with the project is sunk costs.

4 0

2 years ago

Budgeting, analysis of investment proposals, and provision of funds are activities associated with the _______ function.

AleksAgata [21]

Answer:

Budgeting, analysis of investment proposals, and provision of funds are activities associated with the finance function.

Explanation:

The finance function manages a business' finance and helps with the decision-making. This allows businesses to manage in the modern world.

3 0

2 years ago

The purpose of stock valuation isGroup of answer choicesof limited value, since the efficient market hypothesis proves that all

ki77a [65]

To determine whether the value of the common stock is fairly represented by its market price.

8 0

3 years ago

A listener who requires a lot of supporting evidence is a(n)

andriy [413]

content-oriented listener.

4 0

3 years ago

Read 2 more answers

An unfavorable balance of trade occurs when the value of.

zloy xaker [14]

An unfavorable balance of trade occurs when the value of a country's import exceeds the export.

<h3>What is an import?</h3>

It should be noted that an import simply means the goods and services that are brought into a country from another country.

In this case, unfavorable balance of trade occurs when the value of a country's import exceeds the export.

Learn more about trade on:

brainly.com/question/17727564

#SPJ1

8 0

2 years ago