Answer: An inefficient firm is unable to achieve as much output as the production function shows.
Explanation:
The Production function shows the maximum amount of output that can be produced by a company given the a certain number of inputs which are usually capital and labor.
At each combination of the input therefore, the function shows how much a company should be able to produce. If a company is therefore inefficient and unable to use its inputs effectively, it will be unable to produce at the point it is to be producing at given the combination of inputs they are using.
Answer:
The correct answer is: four (4) hours watching TV.
Explanation:
Marginal Cost refers to the increase in the total cost as the result of producing one more unit of the good. Companies study marginal costs to determine what is the point at which they should take production to maximize their profits in terms of costs.
In Matias' case, moving from a "B" score to an "A" grade would cost him four (4) more hours that he could have spent watching TV. Then, those 4 hours represent his marginal cost.
Answer:
Annual ordering cost = = $30
Annual Holding Cost = $200
Explanation:
order size = Q1 = 200
Annual ordering cost = (A/Q1) x S = (400/200) x 15 = $30
Annual Holding Cost = (Q1/2) x H = (200/2) x 2 = $200
Answer:
Option (D) is correct.
Explanation:
Dividend in year 12:
= $2.60 × 1.695881
= $4.409292
Price of the stock in 12 years:
= $70.89