Answer:
4 houses per month.
Explanation:
Note: See the attached file for the calculation.
Efficient scale of production is can be described as the number of units of production where average total cost (ATC) of production is lowest.
From the attached file, the ATC of $70 is the lowest at 4 houses per month and 4 houses per month is therefore the efficient scale.
<span>This is an example of adapting to a new environment. It is an improved function that is produced by natural selection. They reproduce more often in a new environment because they have the necessary food or climate or both to be able to sustain population growth.</span>
Answer:
The correct answer is option c.
Explanation:
The law of diminishing returns states that as we go on employing additional inputs the return or payoff from each unit of input will become smaller or go on declining. This means that after a certain point the total output will start increasing on a decreasing rate as we go on hiring more inputs.
In other words, the marginal product of inputs will go on declining with each additional unit of input employed. As a result after reaching a certain point, the marginal product starts to decline.
Answer:
It is more convenient to produce the sails in house.
Explanation:
Giving the following information:
Riggs purchases sails at $ 250 each, but the company is considering using the excess capacity to manufacture the sails instead. The manufacturing cost per sail would be $ 100 for direct materials, $ 80 for direct labor, and $ 90 for overhead. The $ 90 overhead includes $ 78,000 of annual fixed overhead that is allocated using normal capacity.
Because there will not be an increase in fixed costs, we will not have them into account.
Variable overhead= 90 - (78,000/1,200)= 25
Unitary variable cost= 100 + 80 + 25= 205
It is more convenient to produce the sails in house.
