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3 years ago

Whether two goods are substitutes or complements can be determined by computing the.

Business

1 answer:

d1i1m1o1n [39]3 years ago

5 0

Answer: cross price elasticity of demand

Explanation:

The cross price elasticity of demand measures the changes in quantity demanded of one good when the price of another good changes.

Substitute goods are goods that can be used instead of another good e.g. coke and pepsi. The cross price elasticity for substitutes is usually positive because an increase in price of one good increases the quantity demanded of the other good.

Complementary goods are goods that have to be consumed or used together. E.g. car and gas. The cross price elasticity for complementary goods are usually negative because an incease in price of one good leads to fall in the quantity demanded of the other good.

I hope my answer helps you

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The correct answer is (D) D. depend on the highest degree earned

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What are different occupations in tourism?

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2 years ago

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Bea Moran wants to establish a long derivatives position in a commodity she will need to acquire in six months. Moran observes t

Marianna [84]

Bea Moran wants to establish a long derivatives position in a commodity she will need to acquire in six months. Moran observes that the six-month forward price is 45.20 and the six-month futures price is 45.10. This difference most likely suggests that for this commodity: futures prices are negatively correlated with interest rates.

This is further explained below.

<h3>What are interest rates?</h3>

Generally, the fraction of a loan that is charged as interest to the borrower is often stated as a yearly percentage of the loan outstanding.

"lower interest rates encourage people to spend money on house upgrades"

In conclusion, Bea Moran would want to construct a long derivatives position in a commodity that she will need to buy in a little over half a year's time. Moran notes that the price of the six-month forward contract is now at 45.20, while the price of the six-month futures contract is currently at 45.10. Because of this disparity, it is quite probable that the prices of futures contracts for this commodity have an inverse relationship with interest rates.

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2 years ago

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3 years ago

Matt's factory rents equipment and hires students to produce sports bags. Compare the outputs at which Matt's AVC and ATC curves

stiks02 [169]

The output at which the average variable cost is a minimum is smaller than the output at which the average total cost is a minimum because initially when decreasing marginal returns set in, (E) average fixed cost is decreasing at a faster rate than average variable cost is increasing.

<h3>What is the average variable cost?</h3>

In economics, the variable cost per unit is known as the average variable cost.
Divide the entire variable cost by the output to get the average variable cost.
In the short term, the enterprises use the average variable cost to determine whether to stop production.

<h3>What is the average fixed cost?</h3>

The average fixed cost (AFC) is a fixed cost that remains constant regardless of the number of goods and services produced by a corporation.
To summarize, the average fixed cost (AFC) is the fixed cost per unit derived by dividing the total fixed cost by the output level.

Therefore, the output at which the average variable cost is a minimum is smaller than the output at which the average total cost is a minimum because initially when decreasing marginal returns set in, (E) average fixed cost is decreasing at a faster rate than average variable cost is increasing.

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Complete question:

Matt's factory rents equipment for manufacturing sports bags and hires students.

The table gives Matt's average total cost schedule and average variable cost schedule.

The output at which the average variable cost is a minimum is smaller than the output at which the average total cost is a minimum because initially when decreasing marginal returns set in, ______.

A.the total fixed cost initially increases and then decreases

B. total fixed cost is decreasing at a faster rate than total variable cost is increasing

C. average variable cost is decreasing at a faster rate than average fixed cost is increasing

D. total variable cost is decreasing at a faster rate than total fixed cost is increasing

E. average fixed cost is decreasing at a faster rate than average variable cost is increasing

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