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pantera1 [17]
3 years ago
10

A firm has three different production​ facilities, all of which produce the same product. While reviewing the​ firm's cost​ data

, Jasmin, a​ manager, discovers that one of the plants has a higher average cost than the other plants and suggests closing that plant. Another​ manager, Joshua, notes that the​ high-cost plant has high fixed costs but that the marginal cost for that plant is lower than in the other plants. He says that the​ high-cost plant should not be shut down but should expand its operations. Who is​ right? Just considering the short run time​ frame, the manager who is correct is
Business
1 answer:
kakasveta [241]3 years ago
3 0

Answer:

Joshua statement is correct.

Explanation:

Marginal cost:

Is the cost of producing a new unit.

Average Cost:

\frac{Fixed Cost + Variable Cost}{UnitsProduced} = $Average Cost

\frac{Fixed Cost}{UnitsProduced} + $Variable Cost Per Unit= Average Cost

If the marginal cost of this plant is lower than their other plants, it can decrease his average cost by increasing the amount produced.

This increase in production decrease the impact of the fixed cost in the unit price. At more production the average cost will decrease. Because the variable cost keeps at the same value but the fixed cost per unit decrease.

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The University of Iowa runs a series of ads throughout the Midwest on how friendly and helpful its faculty, staff, and students
Alex Ar [27]

Answer:

The answer would be D

Explanation:

Advertising that promotes a business, organization, institution or similar unit. In institutional advertising, the business promotes itself rather than its product.

3 0
3 years ago
Jamie ensures that his subordinates are closely guided and instructed throughout a project. He believes that this makes him a hi
GaryK [48]

The blind area REASON: Jamie is unaware that his behavior is viewed as controlling to others.

7 0
3 years ago
BI can help managers with __________, where a company keeps tabs of its competitor's activities on the web using software that a
enyata [817]

Answer:

The correct answer is: competitive.

Explanation:

Monitoring competition is something that every entrepreneur must do frequently. You will not want to simply follow what they are doing.

But you will want to know how the market is reacting, know what the latest trends are, the position they occupy and occupy and know how to plan to always be one step ahead of everyone. This monitoring aims to find new possibilities and define objectives based on who you need to beat (or keep ahead).

Currently, we are in a world in which detailed research is very important and the internet is growing more and more. There are also a million different factors to consider when you're spying on the competition. And it is at this precise moment that these tools come into play.

In some cases, these tools also serve to monitor your own performance and then compare it with the valuable information of your competitors.

There are many tools to analyze the competition and spy on it. But the important thing, beyond knowing the ways to obtain the information, is to prioritize the data that most interest us in order to calculate the positioning that each one has in the market.

6 0
3 years ago
A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. Wha
allochka39001 [22]

Answer:

The answer is:  $18, 750

Explanation:

The double-declining-balance(DDB) method entails computing depreciation of an asset at an accelerated rate. This method is employed when the asset loses value quickly and is expected to generate more revenue at the earlier stages of its useful life. The depreciation is higher at the beginning and lower close to the end of the asset's useful life. The depreciation is computed as follows:

Depreciation = 2 * straight line depreciation percentage * Book value at the beginning of the period

Machine cost: $75, 000

Residual Value: $5, 000

Estimated Life: 4 years/18, 000 hours

Straight line depreciation percentage : 100/4 = 25%

Depreciation Year 1 on DDB =  2 * 25% * $75, 000

                                               = $37, 500

Depreciation Year 2 on DDB =  2 * 25% * ($75, 000 -$37, 500)

                                               = $18, 750

       

4 0
3 years ago
The _________________ is the buying and selling of Treasury securities to influence the nation’s money supply..
Lynna [10]

Answer:

open market operation

Explanation:

The Federal Reserve purchases and sells treasury securities on the open market in order to regulate the supply of money that is on deposit in banks, and therefore available to loan out to businesses and consumers. It purchases Treasury securities to increase the supply of money and sells them to reduce the supply of money

3 0
2 years ago
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