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STatiana [176]
4 years ago
12

The short-run average total cost curve is U-shaped because 1. average fixed costs decline continuously as output increases. 2. o

f increasing and diminishing returns. 3. of economies and diseconomies of scale. 4. minimum efficient scale is encountered.
Business
1 answer:
dlinn [17]4 years ago
7 0

Answer:

2. of increasing and diminishing returns.

Explanation:

In short run cost there are usually fixed factors of production. That is, it refers to a firm's physical ability to produce.

The U shape is as result of decline in average fixed costs eg Rent, and due to diminishing marginal returns to the variable input such as labor.

Because of the law of diminishing returns, once the marginal product of labor initially rises, and reaches it's peak it then continuously falls as production increases thereby creating a U Shape graph.

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Consider a city of 200 people (100 rich and 100 poor) and two neighborhoods (100 people in each). Both groups generally prefer t
Mekhanik [1.2K]

Answer:

Explanation:

Step 1. Given information.

  • City of 200 people
  • 100 rich, 100 poor.

Step 2. Formulas needed to solve the exercise.

  • P(poor) = 0.9x^2
  • P(rich)= 35x-0.1x^2

Step 3. Calculation and step 4. Solution.

P(poor) = p (rich)

0.9x2 = 35x - 0.1x2

1x2 = 35x

x = 35

x is the percentage of rich above 50%, thus there are 35% rich people above 50%.

P (poor) = 1102.5

P (rich) = 1102.5

The equilibrium premium is $1,102.5

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3 years ago
At what point in the job application process are soft skills particularly important
Reika [66]
A when writing a cover
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3 years ago
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Name a bar establishment that you visited before. Describe the<br><br>ambience and its features.​
andreev551 [17]

Answer:

Neighbourhood Bar & Resto

Explanation:

What a great experience! Sulit ang money especially for the platters that they offer, we enjoyed the James platter because of the nachos. Like the kropek too. Love the cold beer because of the unlimited ice and panalo din yung colored pink na cocktail drink. Nice choice of songs for the acoustic band then plus na lang yung area when you can play! Then clap clap for the alertness of staff... Pop na pop!!!! Ahahaha...Excellent evening out with a vibrant crowd.  Not artificial but with quality. Good food. Affordable drinks and foods.  

8 0
3 years ago
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The level of aggregate supply in the long-run is not affected by________. A. Changes in the capital stock. B. changes in the num
NemiM [27]

Answer: C. Changes in the price level

Explanation:

In the long run only change in capital, change in the amount of labour and technological changes affects the level of aggregate supply because everything in the economy is assumed to be used optimally. Therefore, on a LONG RUN price level does not affect the level of aggregate supply.

3 0
3 years ago
An insurance company is obligated to pay a policyholder $500 in one year and $2,000 in 3 years. The insurance company has decide
vladimir2022 [97]

Answer:

The total cost of establishing the portfolio is $2054.95.

Explanation:

The present value of a bond is given as

PV=FV\times\dfrac{1}{(1+r)^n}

For 1 year zero-coupon bond is

  • FV is 500
  • r is 7% or 0.07
  • n is 1

So the value is

PV=FV\times\dfrac{1}{(1+r)^n}\\PV=500\times\dfrac{1}{(1+0.07)^1}\\PV=500\times\dfrac{1}{(1.07)}\\PV=500\times0.9346\\PV=\$ 467.29

Similarly, for 3 years zero-coupon bond is

  • FV is 2000
  • r is 8% or 0.07
  • n is 3

So the value is

PV=FV\times\dfrac{1}{(1+r)^n}\\PV=2000\times\dfrac{1}{(1+0.08)^3}\\PV=2000\times\dfrac{1}{(1.08)^3}\\PV=2000\times0.7938\\PV=\$ 1587.66

So the total cost is

Total Cost=Cost of  1-year zero-coupon bond+Cost of 3-years zero-coupon bond

Total Cost=$ 467.29+$ 1587.66

Total Cost= $ 2054.95

So the total cost of establishing the portfolio is $2054.95.

6 0
3 years ago
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