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tekilochka [14]
3 years ago
5

Last month, when 10,000 units of a product were manufactured, the cost per unit was $60. At this level of activity, variable cos

ts are 50% of total unit costs. If 10,500 units are manufactured next month and cost behavior patterns remain unchanged the:
Business
1 answer:
anastassius [24]3 years ago
7 0

Answer:

Total cost per unit will decrease.

Explanation:

Solutions:

Variable cost is 0.5 of the total cost

Given that total cost=fc+vc

Find FC since VC is given

Therefore :

1st month cost behavior

$60*0.5 = $30

$300,000/10,000 = $30 (fixed)

2nd month cost behavior

$300,000/10,500 = $28.57(fixed)

Add the different months together

Then have

30+28.57 = 58.57 < 60

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Suppose that three firms make up the entire wig manufacturing industry. One has a 60% market share, and the other two have a 20%
mr_godi [17]

Answer:

4400

Increase

c. An index of 10,000 corresponds to a monopoly firm with 100% market share

Explanation:

Here are the options to the last question

Why is the largest possible value of the Herfindahl index 10,000 ?

a. An index of 10,000 corresponds to 100 firms with a 1% market share each

b. An industry with an index higher than 10,000 is automatically regulated by the Justice Department

c. An index of 10,000 corresponds to a monopoly firm with 100% market share

HHI index = 60²  + 20² + 20² = 4400

If one of the firms leaves the industry, the market share would be distributed between the two firms and this would cause the HHI index to increase as firm's concentration would increase

If only one firm operates in the industry, its market share would be 100% and its HHI index would be 100² = 10,000. For an industry to exist there has to be at least one firm operating in the industry,

7 0
2 years ago
Indirect labor and indirect materials are classified as factory overhead and product costs factory overhead and period costs ope
Dvinal [7]

Answer:

True

Explanation:

Product costs are the costs directly incurred from the manufacturing process. The three basic categories of product costs they are;

1) direct material

2) direct labour

3) manufacturing (factory) overhead.

Manufacturing overhead cost also include the following;

a) indirect labour: Indirect labor is the labor of those who are not directly involved in the production of the products.

b) indirect material: Indirect materials are materials that are used in the production process but that are not directly traceable to the product.

4 0
3 years ago
What would be the consequences if managers of a firm evaluated a project based on its actual dollar cash flows, but used a real
matrenka [14]

Answer:

Real rate of returns are lower than nominal rates of return, therefore, using a real discount rate would overestimate a project's net present value. This could result in unprofitable projects being accepted because the NPV was erroneously calculated. If you want to use a real discount rate, you must first convert cash flows to real dollars.

For example, nominal discount rate is 10%, inflation rate is 5%, real discount rate is 5%.

Initial outlay $100

NCF year 1 = $40

NCF year 2 = $40

NCF year 3 = $40

Using the real discount rate, the NPV = $8.93

Using the nominal discount rate, the NPV = -$0.53

6 0
2 years ago
If demand increased by 100 units at each price level, and the government set a price ceiling of $40, then there will be
mel-nik [20]

Answer:

no surplus or shortage

Explanation:

Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.

Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied

If demamd increases by 100, new equilibrium is 40

Thus, ceiling price equal equilibrium

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

Effects of a binding price ceiling

It leads to shortages

it leads to the development of black markets

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4 0
2 years ago
Which one of these is not affected by a persons credit score
Vadim26 [7]
The 3rd one is not affected by a persons credit score
5 0
3 years ago
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