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2 years ago

Average fixed costs for a given level of output can be determined graphically by:

Business

1 answer:

Nadya [2.5K]2 years ago

8 0

Answer:

The correct answer to the following question is option D) the vertical distance between ATC ( Average total cost ) and AVC ( Average variable cost ) .

Explanation:

AFC which is know as average fixed cost , can be taken out by dividing the total fixed cost from the total number of units produced. In the earlier phase , for the given number of units produced, both AVC and AFC curve would decrease, which would ultimately lead to fall in ATC. But when the units increase , the AVC would start to rise but AFC is still falling and due to this ATC would sill fall , because fall in AFC is still greater than rise in AVC . As output further rises , the AVC would keep on rising and would finally offset fall in AFC and ATC would also start rising. Therefore AFC would be determined by vertical distance between ATC and AVC.

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If average product is increasing, then marginal product Select one: a. must be greater than average product. b. must be less tha

netineya [11]

Answer: Option (a) is correct.

Explanation:

Figure attached with this answer shows the two curves, namely, average product curve and marginal product curve.

Marginal product refers to the change in the total output divided by the change in the quantity of inputs used.

Average product is calculated by dividing the total output produced with the quantity of inputs or factors of production used.

The relationship between marginal product and average product is explained by three phases:

(1) Average product is rising,

Marginal product is greater than the average product.

(2) Average product is maximum,

Marginal product is equal to average product.

(3) Average product is falling because of diminishing marginal utility,

Marginal product is less than the average product.

4 0

2 years ago

Helen spent the last 85 days of 2020 in a nursing home. The cost of the services provided to her was $27,625 ($325 per day). Med

Vsevolod [243]

Answer:

Amount included in gross income of Helen is $0.

Hence, There will be no effect upon the gross income of Helen.

Explanation:

Data Given:

Number of Days Helen Spent = 85 days

Cost of the services = $27,625

Medicare Paid = $8400

Benefits received = $15440

Assumption: Federal Daily Excludible amount = $380

Solution:

Daily Statutory amount = Daily Excludible amount x number days spent

Daily Statutory amount = $380 x 85 days

Daily Statutory amount = $32300

We know that,

Amount of Medicare Paid = $8400

So, now we need to calculate the amount of exclusion first.

1. Amount of Exclusion = cost of the services - Medicare paid

Amount of Exclusion = $27625 - $8400 = $19225

So, now we calculate the amount included into the gross income of Helen.

2. Amount included in gross income = Benefits Received - Amount of Exclusion

Amount included in gross income = $15440 - $19225

Amount included in gross income = -$3785

Here, we will not cater the negative, which means that amount included in gross income of Helen is $0.

Hence, There will be no effect upon the gross income of Helen.

5 0

2 years ago

Thrice Corp. uses no debt. The weighted average cost of capital is 8.4 percent. If the current market value of the equity is $16

In-s [12.5K]

Answer:

$1,369,200

Explanation:

Calculation for EBIT

Using this formula

Value of Equity= EBIT / WACC

Let plug in the formula

$16,300,000 = EBIT / .084

EBIT = .084($16,300,000)

EBIT = $1,369,200

Therefore EBIT is $1,369,200

3 0

2 years ago

What does the price elasticity of supply measure? Click or tap a choice to answer the question. how income affects spending the

Zolol [24]

You didn't put all the alternatives, but I understand economics and I know exactly that concept.

Supply price elasticity measures how price changes impact the supply of goods and services. If the elasticity of supply is elastic, it means that supply is very sensitive to price changes. If the price goes down even slightly, the supply of goods will fall sharply. If the price increases, even if little, the offer will increase much. Conversely, if supply is inelastic, price changes will have little effect on supply for the good. If the price goes down, there will be little impact on the supply of the good. If the price increases, there will also be little impact on supply.

4 0

2 years ago

The majority of problems Best Buy was facing have been brought about by _________________force.

babunello [35]

Answer:

External forces

Explanation:

Best buy is an electronics retailer that aspires to improve customer's lives through technology. They have over 175+ store locations.

However they have been facing challenges in the market with other playera like Circuit City, CompUSA and RadioShack not surviving.

The challenges faced by Best Buy is mostly as a result of external forces in the form of competition with Walmart and Amazon. Resulting in the loss of their share value.

Walmart and Amazon have been able to capture a large part of the electronics market.

Other problems like leadership scandals and inefficient processes also contributed to their problems.

4 0

3 years ago