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Nezavi [6.7K]
3 years ago
10

Alternative A would involve substantial fixed but relatively low variable costs: fixed costs would be $250,000 per year, and var

iable costs would be $500 per boat. Subcontracting would involve a cost per boat of $2,500, and expansion would require an annual fixed cost of $50,000 and a variable cost of $1,000 per boat. Question: At what level of output will location B yield its lowest total cost.
Business
1 answer:
stepladder [879]3 years ago
6 0

Answer:

From zero to 33 boats option B would be best

Explanation:

Assuming the first alternative (A)is 250,000 fixed and 500 per boat

second (B) 2,500 cost per boat

and third (C) 50,000 fixed and 1,000 cost per boat

We want' to know at which level B would be the best option

we want to know when alternative C or A have a cost of 2,500 or lower:

A:

500 + \frac{250,000}{Q} = 2,500

\frac{250,000}{2,500 - 500} = Q

Q = 125

From this point, as fixed cost will be distribute among more units, the cost will decrease meaking C better than B

C:

1,000 + \frac{50,000}{Q} = 2,500

\frac{50,000}{2,500 - 1,000} = Q

Q = 33.33

From this point, as fixed cost will be distribute among more units, the cost will decrease meaking A better than B

From zero to 33 boats option B would be the best of the three options

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Answer:

The correct answer is: the actual price is higher than equilibrium price.

Explanation:

With a downward sloping demand curve and upward-sloping supply curve, excess supply means that the supply is more than quantity demanded. The actual price is higher than the equilibrium price level.  

We are aware that price and supply are directly related, so the firms will supply more at a higher price. But price and quantity demanded are inversely related, so at higher price, the consumers will demand less quantity of the product.  

Thus excess supply is created in the market at a price higher than the equilibrium price.

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3 years ago
Explain what a trade war is
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Answer: A trade war happens when one country retaliates against another by raising import tariffs or placing other restrictions on the other country's imports.

Explanation:

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3 years ago
A manufacturer produces 400 units when the market price is $10 per unit and produces 600 units when the market price is $12 per
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Answer:

C. 2.2.

Explanation:

Mid point elasticity is calculated as follows:

<em>% change in qty supplied/ % change in price</em>

<em />

<em>% change in qty supplied</em>

= (600-400)/(600+400)/2

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<em> % change in price </em>

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5 0
2 years ago
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Maple Leaf, Inc., a television manufacturer, would like to reduce its inventory. To this end, you are asked by the operations ma
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Answer:

Maple Leaf, Inc.

Inventory Turnover:

b. Greater than 2 but less than 3

Explanation:

a) Data and Calculations:

1) Average inventories:

Raw materials     $2,500,000

Work-in-process  $1,000,000

Finished goods      $800,000

Total average inventory   $4,300,000

Cost of goods sold = $12,000,000

Inventory Turnover = Cost of goods sold/Average Inventory

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2) Inventory turnover is a financial ratio that shows the number of times in a year that inventory has been sold by Maple Leaf, Inc.  When it divides the number of days, say 360 days in a year, the ratio that comes out shows the number of days it takes Maple to sell its inventories.

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While making purchase decisions, which of the following products is most likely to elicit the greatest reference group influence
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Answer: a car

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While making purchase decisions, the product that is most likely to elicit the greatest reference group influence will be a car.

This because when an individual has a car, other people see the person and use that as a reference group. It should also be noted that a good thatbis considered public good has a strong influence group.

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