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vichka [17]
3 years ago
10

Question 3

Business
1 answer:
Bas_tet [7]3 years ago
4 0

Answer: Decreasing return to scale

Explanation:

Decreasing return to scale is a situation where the level of output, scale and average costs are all rising.

Decreasing return to scale happens when there's a rise in inputs that are involved in production process such as labour and capital which brings about a increase in output as well even though it's lesser.

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Answer:

It should continue the production in the short-run.

Explanation:

Given the unit produced by Mars Inc. = 100000 boxes.

The selling price of boxes = $4 per box.

The variable costs = $3 per box.

The fixed costs = $150000

The total sales revenue = number of boxes × selling price

= 100000 × 4

= $ 400000

In the short run, the firm should continue its production because it still covers the variable costs.

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After purchasing a digital camera, a consumer debates in his/her mind about whether the choice of purchase was right. This is an
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The uncertainty of a customer about his choice after purchasing an item is an example of an Extended decision making.

<h3>What is an Extended Decision?</h3>

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