Answer:
$62,100
Explanation:
Given that,
Sales price per unit = $ 40
Variable costs per unit:
Manufacturing = $ 23
Marketing and administrative = $ 8
Total fixed costs:
Manufacturing = $ 76,000
Marketing and administrative = $24,000
Total incremental costs:
= Variable manufacturing + Variable marketing and administrative
= (6,900 × $23) + (6,900 × $8)
= $158,700 + $55,200
= $213,900
Incremental income:
= Incremental revenue - Total incremental costs
= (6,900 × $40) - $213,900
= $276,000 - $213,900
= $62,100
Therefore, the operating income increases by $62,100.
Answer:
This implies that bus is an inferior good and car is a normal good.
Explanation:
Initially, Jim's income was $5000 a year.
As his income increases to $60,000 a year, he decides to buy a car instead of using the bus.
In other words, with the increase in income, the demand for traveling by bus is declining.
This implies that it is an inferior good.
The demand for the car is increasing with an increase in income.
So, the car is a normal good.
An inferior good can be defined as a product that shows negative elasticity. This means with an increase in income its demand declines an vice versa.
A normal good can be defined as a product that shows positive income elasticity. That is, its demand increases with rise in income and vice versa.
Economic theory and the data in the table show that the average total cost curve and the marginal cost curve are related in that the MC curve passes through the minimum point of the ATC curve.
<h3>What is the relationship between the MC and ATC curves?</h3><h3 />
The data given by the table (which is accurately filled up) shows that the MC curve will intersect the ATC curve at its lowest point.
We see this from the fact that before the lowest ATC of 0.107, the marginal cost was less than the ATC. After the lowest ATC however, the marginal cost becomes higher than the ATC.
This shows that the MC curve intersected the ATC at its lowest point of 0.107 and then kept rising above it.
Find out more on the MC curve at brainly.com/question/9335427.
Answer and Explanation:
B. reduces the number of available job opportunities
