Answer:
The correct answer is D. the firm has achieved the lowest possible average cost of production.
Explanation:
The minimum efficient scale is called the value of production for which the average long-term cost is minimal and also coincides with the marginal cost.
On the minimum efficient scale it is said that we are in the smallest possible production in which a long-term competitive company would be interested in producing. Below that value, the company would go into losses and should close.
The curve of long-term average costs is obtained from the envelope of the infinite possible curves of short-term average costs for different plant sizes, that is, for different levels of capital. From this envelope, a U-shaped average cost curve is obtained, at which minimum, precisely, the minimum efficient scale is found.
Answer:
the correct answer is "opportunity cost".
the opportunity cost here means the cost of the next best opportunity lost because of spending time at work, this could be 8 hours, 10 hours at work, etc.
the underline point here is that when someone works for, lets say, 8 hours, he or she could have done something else that they enjoy and brings value to them and their family.
but since they are working, they can not engage in that activity. because of this, we call it the opportunity cost! simple right?
Explanation:
Answer:
4.0%
Explanation:
Given that gross sale value = $364,583
And net sale value after commission = $350,000
The commission paid to the broker = $364,583 less $350,000 = $14,583.
Therefore the commission rate
= 
= 14,583/364,583
= 4.0%.
The brokers commission is usually computed on the Gross Sale Value, and not the net sale value.
Answer:
$492,925
Explanation:
Net operating income of product Alpha- 32 at a price of $79.50 if the sales forecast is correct.
Unit sales = 92,150 units as per sales forecast
Selling price per unit = $79.50
Contribution:
= Sales - variable costs
= (units sold × Selling price per unit) - (units sold × Variable cost per unit)
= (92,150 × $79.50
) - (92,150 × $60.00)
= $7,325,925 - $5,529,000
= $1,796,925
Net operating income:
= Contribution - Fixed cost
= $1,796,925 - $1,304,000
= $492,925
<span> each model relies on a number of guess/nference or basic factors that are present in all decision situations </span>
