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klasskru [66]
3 years ago
9

Suppose a firm doubles its inputs (therefore doubling its total costs as well). If this firm is experiencing diseconomies of sca

le, then __________. A Output will double B Output will increase, but less than double C Output will remain the same D Output will decrease
Business
1 answer:
inn [45]3 years ago
5 0

Answer:

<h2>Under diseconomies of scale,firms experience decreasing returns to scale.Hence,the answer would be option B. or output will increase but less than double.</h2>

Explanation:

  • Diseconomies of scale is characterized as a situation in production where any firm experiences increase in the average cost of production as the output or production level expands.
  • Diseconomies of scale can occur when the productive resources of the factors/inputs of production looses their productive efficiency in the production process and is not able to generate proportionate or higher production level or output.
  • As a result,the output or production level obtained by employing a certain level of factor inputs or productive resources is usually less than the amount or proportion of those factor inputs or resources.
  • In other words,due to lower productive capacity or efficiency the productive resources or factors inputs are not able to manufacture or generate proportionate or higher levels of output and hence,the firms end up investing more on these resources or inputs but do not obtain proportionately expected output level.
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The correct answer among all the other choices is B. $210. This is the total amount of interest earned at the end of 3 years. Thank you for posting your question. I hope this answer helped you. Let me know if you need more help. 
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The following information was taken from the 2011 income statement of Ultimate Sales: Pretax income, $12,000; Total operating ex
Hitman42 [59]

Answer:

Ending inventory = 14,000

Explanation:

First, we must clear the COSG from the Pretax Income calculation:

Pretax income = Sales revenue - COSG - Total operating expenses

COSG = Sales revenue - Total operating expenses - Pretax income

COSG = 120,000 - 21,000 - 12000

COSG = 87,000

With this data we can clear the ending inventory of the COSG formula:

COSG = Beginning inventory + Purchases - Ending inventory

Ending inventory = Beginning inventory + Purchases - COSG

Ending inventory = 11,000 + 90,000 - 87,000

Ending inventory = 14,000

3 0
3 years ago
Chemical manufacturer DuPont has approximately $0.68 in assets for every dollar in sales. According to asset intensity, for ever
kotegsom [21]

It is True, based on asset intensity, that for every $100 increase in sales, Chemical manufacturer DuPont would need about $100 in additional assets.

<h3>What is asset intensity?</h3>

The asset or capital intensity is a measure of the amount of assets needed to produce some dollars of sales revenue.

The asset intensity ratio is obtained by dividing the total assets by sales.

Thus, it is True, based on asset intensity, that for every $100 increase in sales, Chemical manufacturer DuPont would need about $100 in additional assets.

Learn more about the capital intensity ratio at brainly.com/question/13887805

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2 years ago
Consider two stocks, A and B. Stock A has an expected return of 10% and a beta of 1.2. Stock B has an expected return of 14% and
barxatty [35]

Answer:

B; it offers an expected excess return of 1.8%

Explanation:

Here are the options :

A; it offers an expected excess return of .2%A; it offers an expected excess return of 2.2%B; it offers an expected excess return of 1.8%B; it offers an expected return of 2.4%

to determine which stock is the better buy, we have to calculate the expected return of the stocks using CAPM

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

Stock A = 5% + 1.2(9% - 5%) = 9.8%

Stock B = 5% + 1.8(9% - 5%) = 12.20%

The next step is to determine the excess return

stated expected return - calculated expected return = excess return

Stock A's excess return = 10% - 9.8% - 0.2%

Stock B's excess return = 14 - 12.20 = 1.8%

Security B would be considered because it has a higher excess return

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2 years ago
When consumers are characterized as preservers, makers, takers, changers, seekers, or escapers, this is because these reflect th
Nimfa-mama [501]

When consumers are characterized as preservers, makers, takers, changers, seekers, or escapers, this is because these reflect their "view of society."

<h3>What is economic sociology?</h3>

Economic sociology is the study of the manufacturing, distribution, transfer, and consumption of products and services using sociological concepts and methods.

Some key features regarding the economic sociology are-

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To know more about the economic sociology, here

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1 year ago
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