The statement "low average total costs are obtained only through large-scale production" defines the Economics of Scale
Large scale production:
Large scale production means the production of a commodity on a large scale with a large sized firm and it requires huge investments in plant and machinery.
Given,
In the natural gas industry, low average total costs are obtained only through large-scale production. In other words, the initial cost of setting up all the necessary pipes and hoses makes it risky and, most likely, unprofitable for competitors to enter the market.
Here we need to define the concept that used here.
In the given question, they state that the low average cost of the product is happen when the production is larger. In this stage the profit is low.
While we looking these definition, we have identify that it will explain the scale of the economy.
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Answer:
A. Is self regulating
Explanation:
The fundamental theory of the classical economy is that the market economy is self regulating. The classical economists believe that an economy is always capable of achieving real GDP, that is GDP when resources are fully employed. And that, time to time, when GDP falls below or exceed the real GDP, the market economy has self-adjustment mechanisms to bring it back to the real GDP level. Classical economists believes in self regulating democracies and capitalistic market developments.
Answer:
$13,400
Explanation:
The movement in cash balance over a period is as a result of receipts and disbursements over the period. This may be expressed mathematically as
Opening balance + receipts - disbursements = closing balance
If the company wants to maintain a desired closing balance, the amount to be borrowed would form part of the receipts
$19,200 + receipts - $190,400 = $31,200
Receipts = $190,400 + $31,200 - $19,200
= $202,400
Given Budgeted cash receipts total $189,000 then amount to be borrowed
= $202,400 - $189,000
= $13,400
Answer:
maturity value = $4100
Explanation:
given data
time = 90 days =
consider 360 days in a year
principal = $4000
interest rate = 10%
to find out
maturity value
solution
first we get here interest amount that is
interest = principal × rate × time .........1
interest = $4000 × 10% ×
interest = $100
so maturity value will be
maturity value = principal + interest .............2
maturity value = $4000 + $100
maturity value = $4100