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ch4aika [34]
3 years ago
5

If a 10 percent increase in both capital and labor causes output to increase by less than 10 percent, the production function is

said to exhibit decreasing returns to scale. If it causes output to increase by more than 10 percent, the production function is said to exhibit increasing returns to scale. Why might a production function exhibit decreasing or increasing returns to scale?
Business
1 answer:
olasank [31]3 years ago
3 0

Answer:

Because of economies and diseconomies of scale.

Explanation:

Increasing returns to scale refers to the situation when a proportionate change in input leads to more than proportionate change in output. This may happen because of economies of scale.  

Economies of scale are said to happen when the average cost of production decreases with the increase in the volume of output.  

Decreasing returns to scale refers to the situation when a proportionate change in input leads to less than proportionate change in output. This may happen because of diseconomies of scale.  

Diseconomies of scale occur when a firm experiences an increase in the average total cost as the volume of output increases.

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in g Management of a local catering company would like the Food Division to transfer 10,000 containers of its final product to t
scZoUnD [109]

Answer:

The minimum transfer price is $25.

Explanation:

The number of containers to be transferred =  10000 containers.

The rate of its container = $41.00

The selling price of food to customers = $98 per unit.

The variable cost per unit for food division = $37 per unit

The fixed price per unit = $25

The transfer price should be a minimum of $25 that is equal to variable cost because as per the rule the transfer price between the organization should be equal to variable cost or marginal cost. therefore, the minimum transfer price is $25.

7 0
3 years ago
Question 5<br><br> Industry is the supply side of the market.<br><br> A)True<br><br> B)False
Afina-wow [57]

Answer:

A) True

Explanation:

A good way to think about it is that industry, a general term for businesses engaging in productive practices, is concerned with the production of goods. These are the goods that are demanded by consumers. So as 'industry' is supplying those goods, it must be on the supply side of the market.

6 0
4 years ago
Abby dies, and her good friend, clay is appointed to administer abby's estate. abby's house was in poor condition, so clay orall
antoniya [11.8K]
<span>The contractor can collect from the estate only.  The contractor and Clay made an agreement only in oral form, not in written agreement.  So, the contractor could not got after Clay.  </span>
5 0
3 years ago
A copy machine cost $ 45 comma 000 when new and has accumulated depreciation of $ 44 comma 000. Suppose Print and Photo Center s
natita [175]

Answer:

The disposal resulted was at D. No gain or loss

Explanation:

The gain or loss on disposal on a fixed asset is calculated by comparing the sales proceeds from disposing off the asset and the carrying value of the asset.

The carrying value of the asset is its net book value which is calculated as follows,

Carrying value = Cost - Accumulated depreciation

If the carrying value is equal to the sales proceeds from disposal, there is no gain or loss.

The carrying value of copy machine was = 45000  -  44000  =  $1000

The sales proceeds were also $1000

Thus, gain/loss on disposal = 1000 - 1000 = $0

Thus, there was no gain or loss on disposal.

6 0
3 years ago
Read 2 more answers
Town A, in one hour, can produce either 4 hotdog buns, or 10 sausages. Town B, in one hour, can produce either 8 hotdog buns, or
katrin [286]

Answer:

The answer is 27 hours

Explanation:

Solution

The Comparative advantage depends on  production of the lower opportunity cost

The opportunity cost of a production is =maximum production of other good /maximum production of the good

Now,

The opportunity cost of hot dog bun for town A =10/4=2.5

Thus,

The opportunity cost of hot dog bun for town B=6/10=0.6

So,

The  town B has a comparative advantage in hot dog buns and A in sausages

Town A will produce-only sausages and it will take the time of  

time in hours =total required a quantity of the good /number of products in an hour

Now,

The time for Town A for sausages=120/10=12 hours

The time for Town B for hot dog buns=120/8=15 hours

Therefore, The total time =12+15=27 hours.

6 0
3 years ago
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