All categories

3 years ago

A firm doubles the quantity of all resources it employs and, as a result, output doubles. Which of the following is correct?

Business

1 answer:

Nuetrik [128]3 years ago

6 0

Answer:

The long-run average total cost curve is flat

Explanation:

When the quantity of all the resources is doubled and, as a result, output doubles then the firm experiences constant returns to scale.

You might be interested in

The following information is available for Marin Inc. for three recent fiscal years. 2022 2021 2020 Inventory $565,000 $572,000

Nataly_w [17]

Answer:

Inventory turnover for 2022 = 1.25

Inventory turnover for 2021 = 1.3

Days Sales in Inventory for 2022= 145.10

Days Sales in Inventory for 2021= 180.044

Gross Profit Rate for 2022= 473750/1,895,000*100= 25%

Gross Profit Rate for 2021= 0.35 * 100= 35%

Explanation:

2022 2021 2020

Inventory $565,000 $572,000 $320,000

Net sales 1,895,000 1,784,000 1,360,000

Cost of goods sold 1,421,250 1,159,600 930,000

Inventory turnover= Cost Of Goods Sold/ Average Inventory

Inventory turnover for 2022 = 1,421,250/ $565,000 + $572,000

Inventory turnover for 2022 = 1,421,250/ 1137,000

Inventory turnover for 2022 = 1.25

Inventory turnover for 2021 = 1,159,600/$572,000 + $320,000

Inventory turnover for 2021 = 1,159,600/892,000

Inventory turnover for 2021 = 1.3

Days Sales in Inventory for 2022 = Ending Inventory/ Cost Of Goods Sold * 365

Days Sales in Inventory for 2022 =($565,000/1,421,250)*365

Days Sales in Inventory for 2022 =(0.3975)*365

Days Sales in Inventory for 2022= 145.10

Days Sales in Inventory for 2021 = Ending Inventory/ Cost Of Goods Sold * 365

Days Sales in Inventory for 2021 =$572,000 / 1,159,600 * 365

Days Sales in Inventory for 2021= 0.4933*365

Days Sales in Inventory for 2021= 180.044

Gross Profit Rate= Gross Profit/ Sales * 100

Gross Profit Rate= Sales - Cost Of Goods Sold / Sales * 100

Gross Profit Rate for 2022= 1,895,000-1,421,250/1,895,000* 100

Gross Profit Rate for 2022= 473750/1,895,000*100= 25%

Gross Profit Rate for 2021= 1,784,000 -1,159,600/ 1,784,000 * 100

Gross Profit Rate for 2021= 624,400/1,784,000 * 100

Gross Profit Rate for 2021= 0.35 * 100= 35%

6 0

3 years ago

Which of the following is a potential benefit of inflation?

Vsevolod [243]

Potential benefit of inflation will be the D More business profits.

During inflation, the average cost of the products that exist in the market would be increased.Because of this, the average net income of the businesses that produced it will also be increased.

4 0

3 years ago

A lower expected return means a higher risk will have to be accepted. true false

Alex777 [14]

The statement "A lower expected return means a higher risk will have to be accepted. " Is false. This is further explained below.

<h3>What is the expected return?</h3>

Generally, According to the proverb, "A lower projected return indicates a bigger risk will need to be taken." Is false

In conclusion, The amount of profit or loss that an investor might anticipate obtaining as a result of the investment is referred to as the anticipated return. To get an anticipated return, first, multiply all of the possible outcomes by the percentage chance that each one will occur, and then add up all of those products. It is impossible to provide a guarantee on expected returns.

Read more about the expected return

brainly.com/question/24173787

#SPJ1

8 0

1 year ago

Consider the following scenario analysis:

seropon [69]

Based on the scenario analysis on stocks and bonds, we know the following:

Treasury bonds will provide a higher return in a recession than in a boom.
The expected return of Bonds is 9.8% and that of stocks is 11.6%.
The standard deviation of Bonds is 9.24% and that of stock is 11.76%.

<h3>What does the scenario analysis on Bonds and Stocks show?</h3>

In a recession, Bond returns will be 15%. This is much higher than Bond returns in a boom of only 5%.

The expected return on bonds will be:

= ∑(Probability of Scenario x Returns in scenario)

= (0.30 x 15%) + (0.60 x 8%) + (0.10 x 5%)

= 9.8%

The expected return on stocks will be:

= (0.30 x -6%) + (0.60 x 18%) + (0.10 x 26%)

= 11.6%

Using a spreadsheet, you can input the expected returns of the stocks and the bonds to find the standard deviation to be 9.24% and 11.76%, respectively.

Find out more on stock expected returns at brainly.com/question/18724022.

#SPJ1

3 0

2 years ago

A(n) ____ cannot be changed or ended. irrevocable trust living will power of attorney revocable trust will

xxMikexx [17]

<span>Like its name implies, an irrevocable trust cannot be changed or ended. Grantors who transfer their assets into such a trust are effectively gifting them to it, revoking their ownership of said assets. This trust is often used as a more tax-effective way to protect an estate.</span>

5 0

3 years ago