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ExtremeBDS [4]
3 years ago
6

A firm's average total cost is minimized when it produces 10 units. When it produces 10 units, the average total cost is $5/unit

. What is the marginal cost when the firm produces 10 units
Business
1 answer:
timurjin [86]3 years ago
5 0

Answer:

$5/unit

Explanation:

In the theory of production cost, the relationships between average total cost and marginal cost are as follows:

1. When the average cost is increasing, the marginal cost will be greater than the average cost.

2. When the average cost is decreasing, the marginal cost will be less than the average cost.

3. When the average cost at the minimum, the marginal cost equals the average cost.

Based on number 3 above, the marginal cost when the firm produces 10 units is $5/unit since the firm's average total cost is minimized when it produces 10 units.

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Vanessa is the purchasing manager at General Things, a maker of housewares. She has evaluated the first year's performance of Hu
klemol [59]

Answer: The options are given below:

A. Vanessa should define new performance outcomes that do not include checking order status.

B. Hunter should develop more realistic goals that do not include checking order status.

C. Vanessa and Hunter should set new performance standards that are more realistic.

D. Vanessa should arrange for training so Hunter can learn how to look up the status of orders.

E. Vanessa should provide Hunter with ongoing performance feedback.

The correct option is D. Vanessa should arrange for training so Hunter can learn how to look up the status of orders.

Explanation: From the scenario given above, we can conclude that Hunter is a good purchasing agent, but a bad record keeper, since he finds it difficult to quickly come up with information about orders.

The next reasonable step to take in order to make Hunter perform better would be to arrange a training for Hunter in order to make him a better record keeper, and therefore be able to keep the records on his orders in a way that he will be able to quickly come up with the status of the orders of employees.

3 0
2 years ago
Charisma, Inc., has debt outstanding with a face value of $6 million. The value of the firm if it were entirely financed by equi
Gnesinka [82]

Answer:

$660,000

Explanation:

According to M & M proportion I with taxes, the value of the levered firm is:

V (Firm) = V (Equity) + V (Debt)

             = $28,400,000 + 0.25(6,000,000)

             = $28,400,000 + $1,500,000

             = $29,900,000

Total market value of the firm:

= Market value of the debt + Market value of equity

= $6,000,000 + stock outstanding × Selling price per share

= $6,000,000 + 415,000 × $56 per share

= $29,240,000

With non-marketed claims, such as bankruptcy costs, we would expect the two values to be the same.

The differences are the non-marketed claims:

Expected bankruptcy costs = $29,900,000 - $29,240,000

                                              = $660,000

4 0
3 years ago
Funds acquired by the firm through retaining earnings have no cost because there are no dividend or interest payments associated
kow [346]

Answer:

False

Explanation:

Retained earnings have no flotation costs, but have opportunity costs. For example, if companies distribute the earnings to shareholders, shareholders can invest the funds in alternative sources for returns.

8 0
3 years ago
Read 2 more answers
Is defined as information containing? patterns, relationships, and trends of various forms of data?
DerKrebs [107]
Business Intelligence. Business intelligence is a broad term that covers basically any information in any format that may be relevant to business strategies. This can include, transaction info, product info, trends, app statistics and so much more. 
4 0
3 years ago
The following information is available for Armstrong Company: Net income $450 Increase in plant and equip. $170 Depreciation exp
ad-work [718]

Answer:

$505

Explanation:

Armstrong Company

Cash flow from operating activities

Adjustments to reconcile net income to operating cash flow.

Net income

$450

Less : Increase in plant and equipment

($170)

Add : Depreciation expenses

$80

Add : Payment of dividends

$10

Add : Decrease in accounts receivable

$20

Add : Increase in long term debt

$100

Less : Increase in Inventories

($15)

Add : Decrease in Account payable $30

Net Cash flow from operating activities

$505

8 0
2 years ago
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