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FromTheMoon [43]
3 years ago
13

The average fixed cost curve a. always declines with increased levels of output. b. always rises with increased levels of output

. c. declines as long as it is above marginal cost. d. declines as long as it is below marginal cost.
Business
1 answer:
Zolol [24]3 years ago
7 0

Answer: a. always declines with increased levels of output.

Explanation: the average fixed cost curve graphically illustrates or shows the relation between average fixed cost a firm incurs in the short-run production of a good or service, and the quantity produced. The average fixed cost curve always declines with increases in the level of output resulting in a negatively sloped curve. This is to say that the average fixed cost is relatively high at smaller quantities of output, which then declines as the level of production increases--the more output increases, the more average fixed cost declines. Why this occurs is that a given fixed cost is spread over an increasingly larger quantity of output and as such, firms can profitably charge a lower price with increased output.

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If a company spends $14.4 million to install refurbished footwear-making equipment with capacity to produce 1 million pairs of a
Margaret [11]

The annual depreciation costs at that facility will rise by 10% or $1,440,000.

<h3>Annual depreciation costs</h3>

Life of the equipment = 10 Years

Salvage value = 0

Annual Depreciation= (Cost of equipment - Estimated salvage value) / Estimated useful life

Annual Depreciation= ($14.4 million- 0) / 10

Annual Depreciation= $1,440,000

or

Annual Depreciation= $1,440,000/$14,400,000 ×100

Annual Depreciation= 10%

Inconclusion the annual depreciation costs at that facility will rise by 10% or $1,440,000.

Learn more about annual depreciation cost here:brainly.com/question/15872169

4 0
2 years ago
You have just received notification that you have won the $1.4 million first prize in the Centennial Lottery. However, the prize
Arada [10]

Answer:

Present value = $6404.20

Explanation:

Data provided in the question :

Amount of the Centennial lottery prize won = $1.4 million = $1,400,000

Time after which the amount will be received, n = 70 years

Discount rate, r = 8%

Now,

the present values is given as:

\textup{Present value}=\frac{\textup{Principle amount}}{(1+r)^n}

on substituting the respective values, we get

\textup{Present value}=\frac{\textup{$1,400,000}}{(1+0.08)^70}

or

Present value = $6404.20

6 0
3 years ago
If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to _____
snow_tiger [21]

Answer: The correct option is "c.exercising an in-the-money put option".

Explanation: If you consider the equity of a firm to be an option on the firm’s assets then the act of paying off debt is comparable to <u>exercising an in-the-money put option</u> on the assets of the firm.

because he would be paying the debt with the participation in the equity of the company.

3 0
3 years ago
Compute the yield to maturity of a $100 face value zero-coupon bond that matures in exactly one year and has a current market pr
Step2247 [10]

Answer:

Yield to maturity is 1.51%

Explanation:

Zero Coupon rate does not offer any coupon payment and it is issued at deep discount value.

Face value = F = $100

Price = P = $98.50

Year to mature = n = 1 year

Yield to maturity = ( F - P ) / n ] / [ (F + P ) / 2 ]

Yield to maturity = ( $100 - $98.5 ) / 1 ] / [ ( $100 + $98.5 ) / 2 ]

Yield to maturity = $1.5 / 99.25

Yield to maturity = 0.0151

Yield to maturity = 1.51%

5 0
3 years ago
Two guys walk into a bar; the third one ducks. If these three men acted independently, and the probability is 0.7 that a person
allsm [11]

Answer:

0.063

Explanation:

Given

Probability of a person to not enter into a bar or ducking   is 0.7

Probability of a person to  enter into a bar  

1 - (Probability of a person to not enter into a bar or ducking)

Substituting the given value, we get

Probability of a person to enter into a bar  

= 1 - 0.7 \\= 0.3

Total three men attempts to enter into the bar and their course of action is independent of each others

Thus, probability of observing the first two walking into the bar and the third ducking will be equal to the product of individual probabilities

= 0.7 * 0.3 * 0.3\\= 0.063

7 0
4 years ago
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