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Dmitry_Shevchenko [17]
3 years ago
10

The United Kingdom started regulating the size of grocery stores in the early​ 1990s, and​ today, the average size of a typical

UK grocery store is roughly half the size of a typical U.S. store and​two-thirds the size of a typical French store​ (Haskel and​ Sadun, 2011).  
What implications would such a restriction on size have on a​store's average costs. Discuss in terms of economics of scale and scope.

A. Grocery store size does not affect the​ long-run average cost of production if there are economies of scale.

B. The​ long-run average cost of production for U.K. grocery stores is lower if there are no economies of scale.

C. The​ long-run average cost of production for U.K. grocery stores is lower if there are diseconomics of scale.

D. The​ long-run average cost of production for U.K. grocery stores is higher if there are diseconomics of scale.
Business
1 answer:
Svetradugi [14.3K]3 years ago
0 0

Answer:

C. The​ long-run average cost of production for U.K. grocery stores is lower if there are diseconomics of scale.

Explanation:

The diseconomy of scale is called the effect that occurs in the costs of a given production. These effects generate increasing costs for the company for each unit of product that is manufactured. Specifically and technically, a diseconomy of scale occurs when a percentage increase in production is less than the percentage increase in inputs.

Since the size of the grocery stores decreases, the average costs decreases. So, The​ long-run average cost of production is lower when there are diseconomics of scale.

Hope this helps.

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Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess d
IrinaK [193]

Answer:

Option (a) and (c) are correct.

Explanation:

We know that rent control is an example of price ceiling. If the price of apartments set below the equilibrium price level then there is increase in the demand for apartments. So, the demand for apartments exceeds quantity supplied at the prevailing market price.

(a) Therefore, the quality of rental housing falls because of the lower price of the apartment. As this will become less profitable for the landlords, so they are least interested in the maintenance of the apartments.

(b) This will also lead to develop black market. The landlords are trying to fool the higher authorities and rent their apartments at a higher cost because this will be done without any type of legal documentation of the apartments or results from the manipulation of the rules.

6 0
3 years ago
Sean is looking for a new job that will allow him the flexibility to work from home at least one day a week so he can care for h
liq [111]

<u>Answer</u>:

Boundaryless career pattern is similar as temporary workers.

<u>Explanation</u>:

“Boundaryless career” has been a new perspective in any organisation these days. This type of career pattern provides the employees flexibility in terms of working hours. They pay them high wages for their excellent skill set.  

A person works with several organisations at a single point of time and quickly develops his career. Knowledge of such people is quite high, and companies gain from their expertise. As given in the question, Sean is provided flexibility by allowing him to work from home so that he can take care of his parents. So, this is a boundaryless career pattern.

5 0
3 years ago
Which of the following functions of marketing involves sorting products according to their size and quality, helping to reduce t
sladkih [1.3K]

Answer:

b. The standardization and grading function

Explanation:

Based on the information provided within the question it can be said that the function of marketing that does this is the standardization and grading function. This helps the customers with buying and selling of goods by sample or description. In other words by sorting them by a specific size and quality so that customers already understand what it is and do not have to bother with a detailed assessment.

7 0
3 years ago
Tyson Inc. is currently trading at $18 per share. The company is expected to pay a dividend of $1.63/per share next year. The di
viktelen [127]

Answer:

$20.38  buy

Explanation:

The computation of present value is shown below:-

Fair Value according to Gordon Model = Expected Div ÷ (Required Return - Growth rate)

= $1.63 ÷ (10.5% - 2.5%)

= $1.63 ÷ 8%

= $20.38

Fair Price = $ 20.38 and Actual Price = $18.00

As Fair Price is greater than the Actual Price so, the stock is under priced. Therefore advice to buy.

5 0
3 years ago
Corris Co. accumulates the following data concerning a mixed cost, using miles as the activity level. Miles Driven Total Cost Ja
Sedbober [7]

Answer:

Variable cost per unit= $1.5

Fixed costs= $2,000

Explanation:

Giving the following information:

Miles Driven Total Cost

January 10,000 $17,000

February 8,000 13,500

March 9,000 14,400

April 7,000 12,500

<u>To calculate the variable and fixed costs under the high-low method, we need to use the following formula:</u>

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (17,000 - 12,500) / (10,000 - 7,000)

Variable cost per unit= $1.5

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 17,000 - (1.5*10,000)

Fixed costs= $2,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 12,500 - (1.5*7,000)

Fixed costs= $2,000

5 0
3 years ago
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