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Sliva [168]
3 years ago
11

In the short​ run, the marginal cost of the first unit of output is​ $20, the marginal cost of producing the second unit of outp

ut is​ $16, and the marginal cost of producing the third unit of output is​ $12. The​ firm's total variable cost of producing three units of output​ is:
A) $12.
B) $16.
C) $20.
D) $48.
Business
1 answer:
Alinara [238K]3 years ago
6 0

Answer:

Hence, the  firm's total variable cost of producing three units of output​ is $48 unit.

Thus, the correct option is d. $48 unit.

Explanation:

The computation of total variable cost is shown below:

= marginal cost of the First unit of output + marginal cost of the second unit of output + marginal cost of the third unit of output

= $20 + $16 + $12

= $48

The variable cost include all type of cost which is change when the production level changes. In the given question, the output level changes with the unit which reflects the variable cost. So, the cost would be added in the computation part.

Hence, the  firm's total variable cost of producing three units of output​ is $48 unit.

Thus, the correct option is d. $48 unit.

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Allen’s ark sells 2000 canoes per year at a sales price of 460
NNADVOKAT [17]

Answer:

well, sell 2000 canoes per year at 460.... and de rest?

3 0
3 years ago
How will a reduction in the price of cotton (a key resource to make jeans) influence the market for blue jeans?
Savatey [412]

Answer:

d. The cost of producing blue jeans will fall, and the supply curve for blue jeans will shift to the right

Explanation:

If the price of cotton falls, the cost of producing blue jeans would fall. As a result of the fall in the cost of production, more producers would be attracted to the industry and production would increase. Increase in supply of blue jeans would shift the supply curve to the right.

I hope my answer helps you

5 0
2 years ago
Assume that your firm consists of Division 1 (40 percent of the firm) and Division 2 (60 percent of the firm). The capital struc
tresset_1 [31]

Answer:

Division 1's WACC - Division 2's WACC = 11.752% - 14.6656% = - 1.9136% or Division 1 has the lower cost of capital of 1.9136% in absolute term comparing to Division 2.

Explanation:

Before starting, we need to convert unlevered beta into levered beta:

Levered beta of Division 1: 1.2 x ( 1 + (1-40%) x 0.25) = 1.38

Leverage beta of Division 2: 1.46 x ( 1+ (1-40%) x 0.25) = 1.679

Then, we start step by step as below:

First, using the CAPM model: Cost of equity = risk-free rate of return +  beta *(Market Rate of Return – Risk-free Rate of Return) , we find the cost of equity for Division 1 and Division 2.

  - Division 1's cost of Equity = 4% + 1.38 x( 12% -4%) = 15.04%

  - Division 2's cost of equity = 4% + 1.46 x (12% - 4%) = 17.432%

Second, determine the post-tax cost of debt applied for both Division: 6% x (1-tax rate) = 6% x (1 -40%) = 3.60%

Third, calculate the WACC for each Division:

  - Division 1's WACC = % of debt in capital structure x cost of debt + % of equity in capital structure x cost of equity = 20% x 3.6% + 80% x 15.04% = 11.752%;

  - Division 2's WACC = % of debt in capital structure x cost of debt + % of equity in capital structure x cost of equity = 20% x 3.6% + 80% x 17.432% = 14.6656%;

Finally, compare the WACC between the two Division:

Division 1's WACC - Division 2's WACC = 11.752% - 14.6656% = - 1.9136% or Division 1 has the lower cost of capital of 1.9136% in absolute term comparing to Division 2.

6 0
3 years ago
Read 2 more answers
Assume that Saudi Arabia has production possibilities to produce either 100 barrels of oil using 100 worker hours or 25 bushels
Hatshy [7]

Answer: 10 bushels

Explanation:

If they produce 100 barrels of oil using 100 worker hours, it means that the number of work hours taken for 1 barrel is:

= 100 / 100

= 1 work hour

For bushels however, 1 worker hour produces:

= 25 / 100

= 0.25 bushels of corn

If 60 barrels of oil are produced, it means 60 worker hours were used which would leave 40 worker hours.

Bushels of corn produced is therefore:

= 40 * 0.25

= 10 bushels

5 0
2 years ago
Eric sees this new assignment as an increase in​ ________, or an obligation or expectation for him to perform at a new level.
Triss [41]
The answer will be Responsibility Correct
7 0
2 years ago
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