It results in lower short run average cost in economies of sale .
<h3>Economies of scale</h3>
Economies of scale refers to the situation where, as the quantity of output goes up, the cost per unit goes down. This is the idea behind “warehouse stores” like Costco or Walmart. In everyday language: a larger factory can produce at a lower average cost than a smaller factory. Figure 2 illustrates the idea of economies of scale, showing the average cost of producing an alarm clock falling as the quantity of output rises. For a small-sized factory like S, with an output level of 1,000, the average cost of production is $12 per alarm clock. For a medium-sized factory like M, with an output level of 2,000, the average cost of production falls to $8 per alarm clock. For a large factory like L, with an output of 5,000, the average cost of production declines still further to $4 per alarm clock.
One prominent example of economies of scale occurs in the chemical industry. Chemical plants have a lot of pipes. The cost of the materials for producing a pipe is related to the circumference of the pipe and its length. However, the volume of chemicals that can flow through a pipe is determined by the cross-section area of the pipe.
Learn more about economies of scale here :
brainly.com/question/15605103
#SPJ4
The federal system is the us central bank. it is responsible for regulating banks providing banking related services for the federal government acting as the banker’s bank and setting monetary policy
Answer:
A. If the loan is not reclassified as equity, Swan can deduct interest expense annually of $18,000, and Tonya includes in gross income annually interest income of $18,000.
Explanation:
Loans received under $385 should not be reclassified as equity.
Interest expense is determined by multiplication of the money Tonya loans Swan multiplied by the interest rate.
Therefore,
Interest expenses = 600000 x 3%
= $18000
Answer:
Organizational development would be most useful to the organization in terms of building their capacity to achieve greater effectiveness by developing and reinforcing strategies, structures, and processes
Explanation:
Organizational development would be most useful to the organization in terms of building their capacity to achieve greater effectiveness by developing and reinforcing strategies, structures, and processes using various interventions that target human capital, processes, and technology. The Organizational Development Manager administers development and training programs for company employees.
Answer:
Mogul will report Inventory of $26000
Explanation:
The consignment accounting states that any inventory sent on consignment by the consignor to the consignee belongs to the consignor until it is sold by the consignee. Mogu; company sent inventory costing 110000 and out of this only 84000 is sold. The remaining inventory still belongs to the consignor and the amount of this inventory is 110000 - 84000 = $26000
