All categories

3 years ago

In the short run, increasing marginal costs always imply increasing average total costs. a. Trueb. False

Business

1 answer:

Vinvika [58]3 years ago

8 0

Answer:

The answer is A. True.

Explanation:

Marginal Cost is the cost of producing one more product unit.

Marginal Cost = Average Total Cost / Average Goods Output

Therefore, in the short run, an increase in Marginal Cost implies a similar increase in Average Total Cost.

You might be interested in

4. Describe and demonstrate some of the similarities and differences between principles and values

o-na [289]

Answer: Values are qualities or standards that govern the behavior of a person and principles are rules or beliefs that govern our actions. The main difference between values and principles is that principles are based on a person's values. Thus, it is values that act as the foundation for principles.

Explanation:

8 0

3 years ago

Eastview Company uses a perpetual LIFO inventory system, and has the following purchases and sales:

Rom4ik [11]

Answer:

The value of cost of goods sold is $2,730 as shown below

Explanation:

The sale of 120 units made on January 17 is valued at $1,080 (120*$9) taking from stock purchased last on January 1

The sale of 160 units on January 29 is valued at $1,650 (150 units*$11) taking the items purchased last on January 20

The cost of goods sold =$1,080+$1,650

Cost of goods sold=$2,730

The value of closing inventory=30*$9+10*$11

=$270+$110

=$380

Hence value of costs of good sold is $2,730 while closing inventory is valued at $380

7 0

3 years ago

Norman Co. wants to purchase a machine for $40,000, but needs to earn an 8% return. The expected year-end net cash flows are $12

umka21 [38]

Answer:

Year Cashflow [email protected]% PV

$ $

0 (40,000) 1 (40,000)

1 12,000 0.9259 11,111

2 12,000 0.8573 10,288

3 12,000 0.7938 9,526

4 16,000 0.7350 11,760

NPV  2,685

Explanation:

Net present value is the difference between present value of cash inflows and initial outlay. The present value of cash inflows were obtained by multiplying the cash inflows by discount factors. The discount factors were calculated using the formula (1 + r)-n, where n represents number of years and r denotes discount rate.

7 0

3 years ago

When a beekeeper places his hives of bees in an orchard so that the bees can gather nectar to produce honey, the bees pollinate

Delvig [45]

Answer:

b. both the beekeeper and the orchard owner

Explanation:

Options "a. only the owner of the orchard b. both the beekeeper and the orchard owner c. the beekeeper, but it creates a negative externality because the bees are a hazard to the orchard. d.only the beekeeper"

Externality is when the cost or benefit of any activity falls upon the bystander and it can either be positive or negative. The Positive externality is when the benefits is enjoyed by the third party or the bystander. The Negative externality is when the costs fall upon the bystander.

Honey bees are very good pollinating agents, the rearing of honey bee not only benefits the beekeeper by producing honey but also the plants by helping them pollinate and increase the flora of the area, that is, it is also helping the orchard owner by increasing his tree count and hence fruit yield.

4 0

3 years ago

Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 20 direct labor-hours at $16

Lana71 [14]

Answer: 26,325 hrs

Explanation:

We will use the Labor Efficiency Variance concept to calculate this question.

The formula for which is,

Labour Efficiency Variance = (Standard Direct Labour Hours allowed - Actual Direct Labour hours used) * Std Direct Labour Rate

where,

the Standard Direct Labour Hours allowed = Actual units produced * Standard Direct Labour Hours

Substituting figures that would be,

= 1300 x 20 = 26,000hrs

We have the Standard direct labor rate at $16

The Labor Efficiency Variance is 5,200 unfavourable meaning that it is negative = -5,200

Since we are solving for Actual Direct Labour hours used we will denote it, x

Substituting figures we have

-5200 = (26,000 - x) * 16

-5200 = 416,000 - 16x

16x = 416,000 + 5200

16x = 421,200

x = 26,325

The means that the Actual Direct Labour hours used was 26,325.

7 0

3 years ago

Read 2 more answers