Answer: Option(B) is correct.
Explanation:
Total utility refers to the total satisfaction level that a consumer can get from consuming all the units of a commodity.
Marginal utility refers to the utility that a consumer can get from consuming an additional unit of a commodity.
Therefore, the sum of these marginal utilities is nothing but the total utility or we can say that overall utility that a consumer can get from the consumption of a commodity.
Answer:
the unit cost of producing 2,000 cell phones per day would be lower than the unit cost of producing 1,000 units per day.
Explanation:
The costs of producing the 2000 units per day will be lower due to the following reason:
<em>Economies of scale.</em> The company will enjoy the benefits associated with large scale productions. When purchasing raw materials, the company will be a position to bargain for better discounts. The production cost is spread among finished products. A large production keeps the cost per item low.
<em>Some fixed costs may not change</em>. By adding a new plant, the company will increase production activities. Variable costs will increase, but some fixed costs are likely to remain the same. Administrative cost, top management salaries will not be affected. It means a larger number of finished used will absorb the fixed cost.
<em>Efficient machines</em>: The company has invested in new and more efficient machines. Efficiency implies the use of less labor, less power, and faster production. The result is a lower cost of production.
Answer:
0.34
Explanation:
Debt = 1.4 million dollars
Preferred stock = 1.5 million
Common equity = 1.2 million
We are to calculate the Weight on debt
The total value of funds=
Debt + preferred stock + common equity
= (1.4 + 1.5 + 1.2) million
= $4.1 million
So Weight on debt
Debt/total value of funds
= 1.4milloin / 4.1 million
= 0.3415
= 0.34
Answer:
the amount of the cost of goods sold is $5,520
Explanation:
The computation of the cost of goods sold is shown below;
= Unit sold × beginning inventory cost per unit
= 240 units × $23
= $5,520
By multiplying the unit sold with the beginning inventory cost per unit we can get the cost of goods sold
Hence, the amount of the cost of goods sold is $5,520
The same would be considered
Answer:
Customer lifetime value predicts how much profit is associated with a customer during the course of their lifetime relationship with a company.
Explanation:
It is important to manage customer relationships because customers provide a great deal of value to the company if they remain customers for many years.
Customer lifetime value is greater for companies who have loyal customers as compared to customers who are one time only. They add less value to the company as customers are also a source of promotion for the company.
