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Rudiy27
4 years ago
8

When the firm increases output and the costs rise disproportionately​ slower, then the longminusrun average cost curve is​ _____

___ and the firm is experiencing​ ________.
A. downward​ sloping; economies of scale
B. upward​ sloping; diseconomies of scale
C. downward​ sloping; constant returns to scale
D. ​horizontal; constant returns to scale

Business
1 answer:
Stella [2.4K]4 years ago
3 0

Answer:

A. Downward sloping; economies of scale

Explanation:

As the costs rise slower than quantity produced, the cost for each additional unit produced (marginal cost) is decreasing. That is when the Average Cost curve is downward sloping.

At that point the more products are made (scales of production) the lower unit cost becomes (more economic), which means economies of scale.

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Answer: Undercapitalization

Explanation:

Undercapitalization is defined as the situation where a person or entity of any kind does not have sufficient funds or capital to run their business and pay the costs it has. This type of situation usually occurs when the business is not selling the necessary amount of products or services to generate the amount of income necessary to meet all the payments it has.

When an entity or business is undercapitalization, in many cases they have had to take measures such as downsizing, fewer materials to create the product, or ultimately, if none of this works, having to close the business.

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3 years ago
Denver Systems has total assets of $1,000,000; common equity of $400,000; a gross profit of $800,000; total operating expenses o
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Answer:

See

Explanation:

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3 years ago
Which of the following are examples of debt overhang? Which examples are likely to lead to a cutback in spending?
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3 years ago
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Answer:

$165,000

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4 0
3 years ago
Suppose that after controlling for age and education, it is found that the average woman earns $0.80 for every $1.00 earned by t
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Answer:

Consider the following explanations

Explanation:

a. The whole argument is based on the controlling of different factors such as age, education and occupation among males and females. Now, this is very subjective how they have controlled occupation. For e.g. – Which all occupation they have considered for as stressful job, which all jobs they have considered as physical tiring jobs. Working in a refinery may be physical tiring job but then working in IT Company can also be tiring.

Therefore since there are lot of factors at play apart the one considered to calculate ratio’s we can say that these differential percentage points can always be more than or less than of what presented in question.

b. The same logic has to be applied to (b) as well. When we say that discrimination account for less than 8 percent of differential we implied to say that occupation nature may have more than 12 percent of differential. Now, if you use above logic and applied from occupation point of view.

4 0
3 years ago
Read 2 more answers
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