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
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
1 answer:
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:
Beckman noncontrolling interest in subsidiary income $10,520
Calvin Machine (net of accumulated depreciation) $71,200
Explanation:
To calculate noncontrolling interest in subsidiary's income;
Revenue $65,550
Expenses $39,250 (29,250 + $6,800 + $3,200)
Net Income $26,300
Noncontrolling percentage = 40%
NonControlling Income = $10,520
Depreciation of Machine =
= 6,800 per annum
Amortization of trade secrets =
Amortization of trade secrets =
= 3,200