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yKpoI14uk [10]
2 years ago
11

Two costs at Bradshaw Company appear below for specific months of operation. Month Amount Units Produced Delivery costs Septembe

r $ 40,000 40,000 October 55,000 60,000 Utilities September $ 84,000 40,000 October 126,000 60,000 Which type of costs are these?
Business
1 answer:
sp2606 [1]2 years ago
5 0

Answer:

The correct answer is "Delivery cost are mixed and utilities are variable"

Explanation:

Delivery total cost = (Fixed cost + variable cost)

Utilities= (variable cost) If you sold more, your utilities would increase

A fixed cost is a cost that does not change with an increase or decrease independently of the number of products produced or sold.

Variable costs increase or decrease depending on a company's production volume or sell.

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Answer:

The correct answer is option C.

Explanation:

A reduction in spending is going to reduce the income of the consumers in the economy. The consumers do not spend all their income but save it partially. The saving is used to create funds which are invested again and lead to increase in output. The rate of consumption depends on the marginal propensity to consume and marginal propensity to save. The marginal propensity to save is 1-MPC. Smaller MPS will cause saving to be less, consequently investment will also be lower.

So, a reduction in the government spending will be more effective in curbing demand-pull inflation if the marginal propensity to consume is higher and marginal propensity to save is smaller.

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Answer:

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