Answer:
Total cost= $60,800
Explanation:
Giving the following information:
For 4,000 units:
Unitary variable cost= $8
Unitary fixed cost= $5
<u>First, we need to calculate the total fixed cost:</u>
Total fixed cost= 5*4,000= $20,000
<u>Now, we can determine the total cost for 5,100 units:</u>
Total cost= 5,100*8 + 20,000
Total cost= $60,800
Answer:
The correct answer is false.
Explanation:
A firm incurs both variable cost and fixed cost in the short run. If the firm is able to cover the variable cost in the short run it will continue operating. However, if it is not able to cover its variable cost it will stop operating.
So, if the demand falls such that total revenue is not able to cover total cost but the variable cost is being covered, the firm will not stop production.
In the long run, all the costs are variable. So when the revenue is not able to cover cost, the firms will stop operating.
Answer:
An increase in taxes.
Explanation:
A rise in the prices is indications that the inflation rate is high. Policymakers should intervene by introducing contractionary measures that will counter the rising inflation. Fiscal policy measures, such as increasing taxes, reduce inflationary pressures without the risk of causing a recession.
Increase taxes reduces the purchasing power of businesses and individuals, thereby reducing the aggregate demand. A reduction in aggregated demand lowers production levels, which results in low inflation but increases the unemployment rate.
C.
The formula for unemployment rate is: Unemployment Rate = Number of Unemployed Persons / Labor Force. The labor force is the sum of unemployed and employed persons. By dividing the number of individuals whom are unemployed by labor force, you'll find the labor force participation, or unemployment rate
