1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
puteri [66]
3 years ago
12

Whenever marginal cost is greater than average total cost, A. average total cost is rising. B. marginal cost is falling. C. aver

age total cost is falling. D. Both b and c are correct.
Business
1 answer:
Damm [24]3 years ago
4 0

Answer:

A. average total cost is rising.

Explanation:

Whenever marginal cost is more than average cost it means it costs more to produce a unit now compared to the average cost of the previous units. Lets assume that a company produces 3 units  of a good.

The first unit costs $1

The second unit costs $2

The third unit costs $3.

The average cost is (1+2+3)/3=2

Now if the marginal cost for producing a unit is more than the average cost for example if the marginal cost is 4, then this will mean that average total cost is rising. we can mathematically check this.

The first unit costs $1

The second unit costs $2

The third unit costs $3.

The fourth unit costs $4

Average cost= (1+2+3+4)/4=10/4=2.5

Here we see that the average cost increased from 2 to 2.5 because marginal cost was greater than average cost.

You might be interested in
Consider a bond with the following characteristics. Par: $1,000 Two coupon payments per year (i.e., coupons are paid semi-annual
MAXImum [283]

Answer:

The new price of the bond is $928.94

Explanation:

Initially the bond's price is equal to its par value which means the coupon rate on bond and the market interest rates are the same i.e. 6%.

Th bond's price is calculated as the sum of the present value of the annuity of interest payments by the bond and the present value of the face value of the bond that will be received at maturity. The discount rate used to calculate the present values is the market interest rate.

As the bond is a semiannual bond, we will use the semi annual coupon payment, the semi annual percentage of the annual rate of interest on market and the number of semi annual periods outstanding.

Semi annual coupon payment = 1000 * 0.06 * 6/12 = $30

Number of semiannual periods till maturity = 10 * 2 = 20 periods

New market interest rate = 6 + 1 = 7% annual

New semi annual market interest rate = 7% / 2 = 3.5%

Price of bond =  30 * [ (1 - (1+0.035)^-20) / 0.035 ] + 1000 / (1+0.035)^20

Price of bond = $928.938 rounded off to $928.94

We used the present value of annuity ordinary formula for preset value of interest payments and the normal present value of principal formula for the face value.

5 0
3 years ago
A person has a choice between an apple or an orange. The person chooses the apple. What is the opportunity cost of choosing the
Inessa [10]

The opportunity cost would then be not having the orange.

8 0
3 years ago
Identify the correct sentence.
disa [49]
Answer choice D is punctuated correctly due to the use of the long dash between the words year and summer.
8 0
3 years ago
Scarcity, opportunity cost, and marginal analysis Kyoko is training for a triathlon, a timed race that combines swimming, biking
alekssr [168]

Answer:

C

Explanation:

Trade off can be expressed in terms of opportunity cost.

Opportunity cost or implicit is the cost of the option forgone when one alternative is chosen over other alternatives.

Kyoko has limited time so she has to choose between three activities. If she chooses one sport, she would not be able to partake in the other activities. So, she is trading off biking or running for swimming.

Trade off occurs because resources are limited and wants are unlimited.

7 0
2 years ago
Jose wants to find out how many men wear bright colored ties. Which
sergey [27]

Answer:

survey

Explanation:

6 0
3 years ago
Other questions:
  • Every 10 years, the federal government sponsors a national survey of health and health practices (nhanes). one question in the s
    11·1 answer
  • Company made total purchases of $ 250 comma 000 in the most current year. It paid freight in of $ 4 comma 000 on its purchases.
    7·1 answer
  • The following quote best describes ________. "The marvels of modern technology include the development of a soda can which, when
    13·1 answer
  • these students are known as the primary grades question 8 options: a) elementary school b) middle school c) high school
    14·2 answers
  • The Digby company will sell 100 units (x1000) of capacity from their Drat product line. Each unit of capacity is worth $6 plus $
    5·2 answers
  • A software firm plans to reduce the number of talented designers in its workforce who leave their jobs. In this case, the firm s
    9·1 answer
  • A business provides its employees with varying amounts of vacation per year, depending on the length of employment. The estimate
    13·1 answer
  • A physical count of supplies on hand at the end of May for Masters, Inc. indicated $1,253 of supplies on hand. The general ledge
    5·1 answer
  • The annual global growth rate of the human population peaked in the ________ and has been declining ever since.
    13·1 answer
  • The two primary competitive levers that managers can use in order to answer the question of how to compete are.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!