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Amanda [17]
3 years ago
14

When marginal cost exceeds average total cost:

Business
1 answer:
gtnhenbr [62]3 years ago
4 0

Answer:

B) average total cost must be rising

Explanation:

Marginal cost is the rate at which total variable cost increases when one more unit is produces.

So when marginal cost is larger than average cost, it means that total average costs must be increasing.

For example, we have the following production costs:

  • total costs = $100
  • units produced = 20 units
  • total average costs = $5 per unit

If the marginal cost of producing 1 more unit is $6, then the total costs will be $106 and the total average cost will be $5.05 per unit (= $106 / 21 units).

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Advertising is important for most companies, especially companies such as P&G that sells mostly to end customers. But, most
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Explanation:

All for-profit companies have a marketing strategy.

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P&G can establish marketing actions through retailers for which it sells, with in-store display advertising models. You can also use customer interaction to get fundamental feedback so that the company guides its pricing strategy and new product development.

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5 0
3 years ago
For purposes of computing the WACC, if the book value of equity exceeds the market value of equity, then: the market value of eq
vagabundo [1.1K]

Answer:

The market value of equity should be used.

Explanation:

Their are only two methods which are book value method or market value method. The market value method is preferred because the reason is that the market value gives the more accurate numerical value that the securities of the company will give which is the required rate of return to its investors. However historic cost data is not useful because the value of stock and bonds keeps changing every second in the stock exchange and their is the risk that the WACC calculated is inaccurate which implies that the project appraised is also incorrect.

So the best way to calculate the weighted cost of capital is that we should use the fair value of the securities.

5 0
3 years ago
Read 2 more answers
A factor held constant to test the relative impact of the independent variable is known as a:
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The constant in a system is the control. 
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3 years ago
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Album Co. issued 10-year $200,000 debenture bonds on January 2. The bonds pay interest semiannually. Album uses the effective in
trapecia [35]

Answer: 12%

Explanation:

Stated interest rate is used in the calculation of the annual interest payment.

Interest payment = Face value of bonds * Stated interest rate

Annual Interest payment = Semi annual interest payment * 2

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= $24,000

24,000 = 200,000 * Stated interest

Stated interest = 24,000 / 200,000

= 0.12

= 12%

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3 years ago
You are about to leave your shift as a security guard in a retail store, when you notice someone outside tapping on the store wi
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Since the store is already close-- there's no point of having the employee to come in because as a security guard, it is best to protect the store and having to protect it in a way that a person shouldn't be let in when it is already closed even if the person looks like someone who is working in the store. If the employee has some excuses as to why he or she wants to come in, it best to respond in a way that he or she should come back when the store opens or during his or her shift.
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3 years ago
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