Answer:
False
Explanation:
The capacity utilization rate is found by dividing used capacity by the total capacity operating level.
Since services cannot be stocked, the ideal scenario would be to operate at full capacity every single day, but that is not possible. I'm not sure if there is any service company in the world that operates at full capacity all the time, not even Magic Kingdom or Disneyland.
But that doesn't mean that it is always bad to operate at low capacity levels, since every service company must regularly perform maintenance operations, e.g. a hotel must be painted and other repairs must be made.
Also, many services are seasonal, e.g. you do not sky all year long, only during winter, and the opposite applies to the beaches and other parks.
False. NASDAQ has no physical trading floor because all of the stocks are pretty much made electronically.
Answer:
Mrs. Simpson should buy less bread and more milk.
Explanation:
Besides the nutritional differences between bread and milk, Mrs. Simpson is not buying the utility-maximizing combination of bread and milk.
When she purchases bread, she is paying $1 for 80 utils, that means that the marginal cost of every util is 1.25¢.
When she purchases milk, she is paying $0.80 for 70 utils, that means that the marginal cost of every util is 1.14¢.
So the marginal cost per additional util is lower for milk.
Answer:
Rising; Falling; At minimum point of average total cost curve
Explanation:
Average total cost refers to the per unit cost of producing the output.
Marginal cost refers to the cost of producing an additional unit of the commodity.
When the marginal cost is greater than the average total cost, then the average total cost is rising.
When the marginal cost is less than the average total cost, then the average total cost is falling.
Marginal cost curve intersects the average total cost curve at its minimum point. At this point of intersection, the marginal cost is equal to the average total cost.
Answer:
None of the multiple choices is correct. The correct answer should be: "Business profit will increase by $12,000 per year"
Explanation:
$12,000 per year is the rental rate.
If his Uncle Fred gives him the building, George will not pay the rental fee. Thus, the business profit will increase by $12,000 per year.
If we consider about the economic profit or implicit cost, it will not change.