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MrRa [10]
3 years ago
14

If your firm is operating in the negatively sloped portion of a long-run average total cost curve, then your production exhibits

: A) increasing returns to scale. B) higher wages. C) decreasing returns to scale. D) increased input prices.
Business
1 answer:
Zolol [24]3 years ago
8 0

Answer: C. Decreasing returns to scale

Explanation: Economic of scale refer to a situation where as the level of output increases, the average cost will decrease. In the case of constant return to scale here the average cost will not change as the output increases.

In this question the firm is operating in the negative sloped portion of the long-run average total cost curve, which shows that it has a "Decreasing returns to scale " .

You might be interested in
Schister Systems uses the following data in its Cost-Volume-Profit analyses: Total Sales $ 350,000 Variable expenses 210,000 Con
Vedmedyk [2.9K]

Answer:

What is total contribution margin = $168,000.00

Explanation:

<em>The contribution margin is the excess of the sales value over the variable cost of sales .</em>

<em>Contribution per unit = selling price  - variable cost between </em>

<em>Contribution margin (%) = contribution / sales × 100</em>

For Schister Systems

Increase in sales by 20% will give sales revenue worth

= 120% ×  350,000

=  420,000.00

Contribution margin (%)

= (350,000-210,000)/ 350,000   × 100

= 40%

Total contribution = 40% ×420,000.00

                             =  $168,000.00

What is total contribution margin = $168,000.00

3 0
3 years ago
On July 20, 2017, Matt (who files a joint return) purchased 3,000 shares of Orange Corporation stock (the stock is § 1244 small
ivann1987 [24]

Answer Choices:

a. $54,000 ordinary loss.

b. $100,000 ordinary loss; $46,000 net capital gain.

c. $100,000 ordinary loss; $20,000 STCL.

d. $130,000 ordinary loss; $66,000 LTCG.

e. None of the above.

Answer:

e. None of the above.

Explanation:

Matt has a $54,000 STCL ($120,000 - $66,000)

5 0
3 years ago
Select the correct answer
Amiraneli [1.4K]
I believe the answer is A
3 0
3 years ago
You are planning your retirement in 15 years. You plan to retire with $3,000,000 and your retirement account earns 4.8% compound
Maslowich

Answer:

The retirement fund will last for 33 years and 7 months

Explanation:

We need to solve for time in an ordinary annuity

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  $15,000.00

rate 0.004 (4.8% divide by 12 month)

PV $3,000,000

time n

15,000 \times \frac{1-(1+0.004)^{-n} }{0.004} = 3,000,000\\

we clear for n as much as we can and solve

(1+0.004)^{-n}= 1-\frac{3,000,000\times0.004}{15,000}

(1+0.004)^{-n}= 0.20

now we use logarithmic properties to solve for n:

-n= \frac{log0.2}{log(1+0.004)

-403.16  

this will be a value in months so we divide by 12 to get it annually

403/12 = 33,5833

we convert the residual to months:

0.5833 x 12 = 6.996 = 7 months

6 0
3 years ago
In the short-run, the Sure-Screen T-Shirt Company is producing 500 units of output. Its average variable costs are $2.00 and its
Dmitry [639]

Answer:

the correct answer is $1,250

Explanation:

(The average variable costs + the average fixed costs) *  Production units

             =

The firms total costs

$2.00 + $0.50 =$2.50

$2.50 * 500= $1,250

GOOD LUCK

8 0
3 years ago
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