Answer:
D. Assume that people behave rationally.
Explanation:
When a decision maker chooses the option leading to the outcome that he or she most prefers, he or she has made a rational decision. These are the decision that based on facts, data and research, which make it more credible and worthy to be trusted. Therefore most economic model consider every people behave rationally and read information to get aware about situation and can implement economic tools.
Answer:
People invest:
to increase future consumption.
Explanation:
Investments generate increased returns. These returns add value to the pool of an investor's money which can be used to increase future consumption. Investments are important because they increase productivity of value. The increased value will be future use. For example, if A invests his savings of $5,000 which yields an annual return of $1,000 (or 20%) ROI, and the investment is left for 5 years, by the end of 5 years, A will have $10,000. This implies that he has more money to spend than in the previous five years. A can now spend more $5,000 than he could have spent five years' ago.
Efficient use of recources and will maximize profits
Answer:
Equivalent Units of Production (EUP) = 3,520 units
Explanation:
Units Completed = Beginning inventory units + Units Started - Ending Inventory
Equivalent Units of Production (EUP) = Beginning Work in Process (WIP) + Started and Completed Units + Ending Work in Process (WIP) x % of conversion
Units Completed = 200 + 3,200 - 400 = 3,000
EUP = 200 + 3,000 + 400 x 80% = 3,520
Answer:
that the firm is not producing a quantity that minimizes its average cost per unit..
Explanation:
A firm has excess capacity if it is producing less amount of goods or services than it is supposed to produce. it is when marginal cost of production is less than average cost of production and average cost can still be reduced further by increasing the quantities produced.