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lapo4ka [179]
3 years ago
14

Which of the following is a potential benefit of inflation?

Business
2 answers:
bulgar [2K]3 years ago
6 0
The potential benefit of inflation would be : D. more business profit

During inflation, the average cost of the products that exist in the market would be increased.
Because of this, the average net income of the businesses that produced it will also be increased

hope this helps
andrey2020 [161]3 years ago
4 0
It is higher prices because inflation is the general increase of goods and services
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You are a newspaper publisher. You are in the middle of a one-year rental contract for your factory that requires you to pay $50
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Answer:

If sales fall by 20% AFC raises 38 cents per paper, i.e. a 25% increase in AFC.

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AFC=\frac{\mbox{Fixed costs}}{\mbox{Printed papers}} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{1000000 papers}=1.5\frac{\$}{paper} \\\\AFC_{\mbox{original sales}} =\frac{\$1500000}{800000 papers}=1.875 \frac{\$}{paper}

\mbox{Porcentual difference}=\frac{\mbox{difference between AFC}}{\mbox{original AFC}} \\\\\mbox{Porcentual difference}=\frac{1.875-1.50}{1.50}*100=\frac{0.375}{1.5} *100=25\%

We can see that as the output reduced, AFC rose 38 cents per paper or a 25% increase in AFC.

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