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djverab [1.8K]
3 years ago
7

The community of Desertville traditionally produces a large number of tires and a small amount of kiwi fruit. Kiwis are become i

ncreasingly popular, and Desertville has decided to expand kiwi cultivation and decrease tire manufacturing. According to the law of increasing costs,
the cost of producing kiwis will increase.cision
Business
1 answer:
viktelen [127]3 years ago
8 0

Answer:

The answer is TRUE.

According to the law of increasing costs, the cost of producing kiwis will increase.

Explanation:

The law of increasing costs states that as more factors of production are shifted from making one product or service to a second product or service, the cost of producing the second item increases.

As we can see in the scenario given above, the community of Desertville initially produced a small amount of Kiwi fruit. But as kiwis became more popular, its cultivation had to be expanded, therefore, increased costs would be incurred in the process of this expansion.

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alina1380 [7]

An example of a natural monopoly found across the globe is power delivery.

Is electricity a natural monopoly?

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  • A natural monopoly exists when average costs continuously fall as the firm gets larger.
  • An electric company is a classic example of a natural monopoly.

What are some examples of monopolies?

Natural gas, electricity companies, and other utility companies are examples of natural monopolies.

They exist as monopolies because the cost to enter the industry is high and new entrants are unable to provide the same services at lower prices and in quantities comparable to the existing firm.

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I believe the answer is D

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Rufina [12.5K]

Answer: it means beauty

Explanation:

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How would the inventory cost change if labeling and packing were moved to the DC? Assuming the demands are independent of each o
umka2103 [35]

Answer:

Firstly packaging and labeling costs can be either be charged on variable overheads cost or on selling overheads costs( distribution and marketing cost).

Assuming they are charged on Selling overheads cost:

There are no figures to illustrate the change on inventory cost as a result of moving Labeling and packaging from selling overheads to Direct Costs ( DC) but indefinitely when there are new costs charged to the direct costs of inventory, inventory cost will increase by their exact costs.

If they are charged on Variable overheads then they are already part of inventory cost as is variable cost on Work in process therefore there wont be change in inventory cost just change in direct material.

Explanation:

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Answer:

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