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3 years ago

Marginal cost is defined as the change in ________ cost when output changes by one unit. In the short run

Business

2 answers:

-Dominant- [34]3 years ago

8 0

Answer:

Marginal cost is defined as the percentage change in total when output changes by one unit

Explanation:

Marginal cost is the cost of producing one extra unit of output.In order to marginal cost, the below formula is helpful:

marginal=total cost at succeeding output level-total cost at preceding output level/(volume at succeeding output level-volume at preceding output level)

Assuming the total cost and volume at succeeding levels are $4000 and 4000 units

Then total cost and volume at preceding ones are $3000 and 3000

Marginal cost=$4000-$3000/4000-3000

=$1

salantis [7]3 years ago

6 0

Answer:

Marginal cost is defined as the change in total cost when output changes by one unit in the short run.

Explanation:

Marginal cost is defined as the change in total cost when output changes by one unit. In the short run.

It is the amount by total cost will increase as a result of producing additional one more unit of a product.

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Alex invested $10,500 in an account that pays 6 percent simple interest. how much money will he have at the end of four years?'

Marizza181 [45]

The amount generated from the investment with simple interest is calculated through the equation,

F = P x (1 + in)

where F is the future amount, P is the present worth, i is the decimal equivalent of the given interest and n is the number of interest period.

From this item it can be identified that,
P = $10,500
i = 0.06
n = 4

Substituting the known values,

F = ($10,500) x (1 + (0.06)(4))
 F = $13020

Therefore, after four years, the amount of money that Alex will have is $13,020.

4 0

3 years ago

Grove Inc. is a publicly traded chemical company that reported the following financial statements for the most recent year. $1,0

Oksi-84 [34.3K]

Answer:

FCFF = $335.50

Explanation:

Formula of Free Cash Flow to the firm ( FCFF) :

FCFF= Net Income+ Interest(1- tax rate)+ Depreciation+ working capital changes- capital investment

Now let us note some critical points and assumptions which are necessary to solve the question.

As the question says that the company will maintain its existing after tax return on capital invested next year, hence that means that the net income for the next year remains the same, which is $140.

It is also that the company expects it's Operating Income(EBIT) to increase by 6% every year, hence it's operating income(EBIT) for the next year will be $250*(1.06)= $265

Tax rate remains the same, that is, (60/200*100)= 30%

As there is no details with respect to working capital changes and any capital investment made, hence it is assumed to zero changes and no additional investment.

It is assumed that the depreciation method being followed is straight line method, hence depreciation value next year would be the same, that is, 150

Now let's finalise our income statement:

EBIT = $265 given in the question

Interest = ( $65) backward calculation

Taxable Income = $200

Taxes (30%) = ($60)

Net income = $140 given in question.

Hence our FCFF will be :

$ 140 + $65*(1-0.30) + $150 = $335.50

8 0

3 years ago

When a firm decides to use skilled professionals to produce its output, what question is the firm answering? When a firm decid

Stella [2.4K]

Answer:

The correct answers are "How?"; "What?"; and "Who?" respectively.

Explanation:

To begin with, in the economics science there is a big importance that the professionals of the area give to answering the questions mentioned before. Those questions are: "What to produce?"; "How to produce it?" and "To who we produce it to?". And the importance in that resides in the fact that the economy itself as a whole and therefore the companies and small producers among them need to understand what are they going to produce for the economy, to who they will sell it to and how will the produce it.

In conclusion, when the firm decides to use skilled professionals to produce its output they are answering the question of "How?". When the firm decides to produce organic fruit rather than non dash organic fruit, then they are answering the question of "What?". And the when the firm finds out who gets the goods and services that are produced, they are answering the question of "Who?".

7 0

3 years ago

The council of better business bureaus is a national organization devoted to consumer service and _____.

Vladimir [108]

The council of better business bureaus is a national organization devoted to consumer service and business self-regulation.

5 0

3 years ago

Ashley eats two bananas during a particular day. The marginal benefit she enjoys from eating the second banana a. can be thought

Xelga [282]

Answer:

a. can be thought of as the total benefit Ashley enjoys by eating two bananas minus the total benefit she would have enjoyed by eating just the first banana.

Explanation:

The marginal benefit is the satisfaction can is directly associated with the consumption of an extra good or service. The marginal benefit is of a product is the satisfaction derived from consuming more of that product. The marginal benefit of a product depends on the special traits of the product and the intensity of the consumer's need.

To get the marginal benefit of a product, we have to separate the satisfaction from the last consumed unit from the previous one. Marginal is associated with the benefit enjoyed by consumption of the last unit only.

3 0

3 years ago