Answer:
a) a downward shift in the AFC curve
Explanation:
AFC = Average Fixed Cost, AVC = Average Variable Cost, MC = Marginal Cost
Average Fixed Cost is defined as the fixed cost of production divided by the quantity produced. Mathematically given as:
Average Fixed Cost = Fixed Cost ÷ Quantity
AVC = FC ÷ Q
Average Variable Cost is defined as the variable cost of production divided by the quantity produced. Mathematically given as:
AFC = VC ÷ Q
Marginal Cost is defined as the cost incurred for an additional unit to be produced. Mathematically given as:
MC = ΔC ÷ ΔQ
The firm discovered a more efficient technology implies that the cost of production is reduced. The result of this is that the fixed cost (FC) is reduced and consequently, the AFC is reduced as well. Hence, the AFC curve shifts downward. We therefore see that a reduction in fixed costs (due to the discovery of a more efficient technology) results in the AFC curve shifting downwards
<u>Hence, Option A (a downward shift in the AFC curve) is the correct answer </u>
Answer:
b. 7 percent
Explanation:
Benefits here means the statutory benefits that the employees have a right to receive. These on the legal terms are the requirements, as the employer is required to contribute around 7.65% of the salary paid to the employee towards benefits of social security and Medicare.
This clearly is the standard set for the payroll. Now this also provides for the minimum contributions, thus it provides that at-least these are to be made.
Thus, each employer when making a standard salary shall contribute more than 7% towards the benefits of the employees.
The purpose of the Federal Reserve cutting interest rates during a recession is to encourage borrowing (borrowing becomes cheaper) and in this way especially for companies they may spend more money then on improvements, new products etc so the economy theoretically will be stimulated to counteract the recession.
Answer:
$260000
Explanation:
$280k purchase equiment >> Outflow of cash
$40,000>> Operative Cash >> Inflow Cash
$260k >> cash loan in order to achieve balance
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$20000 >> Cash balance
Answer:
d. $75,000
Explanation:
Minimum Claim value to claim in the court for a federal diversity suit is $75,000. It is also called the amount in controversy. For example federal court diversity suit requires a minimum value of claim is $75,000. So, The minimum amount required for a federal diversity suit is $75,000 in the court.
