Answer: A. at the time of contracting.
Explanation:
Insurable interest is the reasonable concern to obtain insurance against unforeseen events such like losses or death. Insurable interest is when the loss of an object or damage would result in a financial loss.
Based on the information given, Maddox Auto Parts gained an insurable interest in the mufflers at the time of contracting. An individual will gain an insurable interest immediately s contract takes place.
Therefore, the correct option is A.
Answer:
A perfectly elastic demand curve means that the firm can sell as much output as it chooses at the current price.
Explanation:
The perfectly elastic demand implies that the demand curve is horizontal line parallel to the X axis. The price is fixed at a point and the firm can sell any amount of output at this point. The demand is infinite at the given price level. If the firm makes any changes in this price level, the demand will become zero.
Answer:
Explanation:
A) Energy can be both a fixed cost and a variable cost for a company. This is due to the sense that energy in the form of fixed electricity bill even when no production takes place (telephone bill), a fixed cost and electricity bill when production takes place would be a variable cost
B) An increment in fixed cost will shift the ATC curve to the right while the MC curve would remain the same because MC is the change in variable cost as output increases and is not related to fixed cost.
C) Corn cost is a variable cost for ethanol producer as each unit of corn is used to produce ethanol and thus use of corn is reliant upon how much ethanol is produced. This makes corn a variable input dependent on the production of output, therefore, the cost of corn is variable.
D) An increment in the variable cost will shift the ATC curve to the right and individual MC curve to the right.
Answer:
<em>Just Meaningful Difference
</em>
Explanation:
The Just meaningful difference
, or simply JMD, Symbolizes the slightest amount of stimulation shift which would impact consumption and preference of consumers.
Example will include, when a price of a can of soda increases slightly from $2.36 to $3.28
Answer:
See below
Explanation:
A supply schedule shows the quantities that suppliers are willing to sell in the market at different prices. It is a table format with quantity on one column and prices on another. As per the law of supply, high prices lead suppliers to supply more at the market.
The supply schedule illustrates in a table format the relations between the price and the quantity supplied. It will show how the quantity increase as prices increases. The supply schedule is a tabular representation of the supply curve.
