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3 years ago

Explain internal economics and internal diseconomics

Business

2 answers:

Hoochie [10]3 years ago

7 0

Answer:

These occur when mass producing a good results in lower average cost. Economies of scale occur within an firm (internal) or within an industry (external). Internal Economies of Scale - As a business grows in scale, its costs will fall due to internal economies of scale.

Explanation:

scoundrel [369]3 years ago

5 0

Answer:

These are the cost advantage that an organization obtains due to their scales of operation . Diseconomies are the cost disadvantages that firms build up due to an increase in firm size or output . This result in the production of goods and services at increased per unit costs . Economics of scale leads to cost reduction .

Explanation:

Thaats what upp

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On January 9, a company pays $5,910 for salaries and wages of which $2,870 was reported as Salaries and Wages Payable on Decembe

Orlov [11]

Answer: Please find answer in explanation column

Explanation:

Journal entry to record payment of Salaries and wages

Dates Account title Debit Credit

Jan 9 Salaries and Wages Payable $2,870

Salaries and Wages Expenses $3,040

Cash $5,910

Calculation

Salaries and wages Expense = Cash -Salaries and Wages Payable

= $5,910- $2,870=$3,040

7 0

3 years ago

Name one factor that could increase the supply of saving and one that could increase the demand for saving. Discuss the effects

Readme [11.4K]

Answer:

Factor that increases the supply of saving: High rate of return

Factor that increase the demand for saving: Confidence in return of business in the future, low rate of interest

Explanation:

Interest rates impacts the rate at which borroweres lend money which in turn determines the influx of savers (lenders). For example, if a business owner lacks the funds to raise capital for business (investment), the next route is usually to borrow money. Money is only borrowed when there is confidence in the business as most times, loans are repaid in the future. Also, if the interest rates are low, it's easier to pay back the loan but if the interest rates are high, this could affect the loan payback in due time (especially if the returns on the investment made or the profits made for the business is not enough to pay back the interest). This factor affects the demand for savings.

The demand for saving ultimately affects the supply of savings because with low demand of borrowing and a high supply of savings leads to a low interest rate, and a low interest rates doesn't appeal investors to save more money. This is simply the law of demand that states demand decreases when the rate of return is high. While the law of supply states that supply increases when the rate of return is high.

The effects of these factors on investment: rate of return changes the flow of influx of investors as one would only want to invest when the compund interest would be high irrespective of the permissible risk involved.

The confidence in an investment would also affect the rate at which one would demand for savings (loans) towards that investment.

7 0

3 years ago

_____________________ direct(s) its marketing activities (primarily advertising, consumer promotion, and direct and digital

asambeis [7]

Answer: (E) Pull strategy

Explanation:

The pull strategy is one of the type of technique that basically used for attract the customers for buying the products and the services by using the promoting or the advertising strategies.

By using the various types of pull tactics we draw attention of the customers towards the products.

The main advantage of the pull strategy is that in this we use the various types of promotion strategy and the digital media for marketing our brands and products.

Therefore, Option (E) is correct.

8 0

3 years ago

Firm H has the opportunity to engage in a transaction that will generate $100,000 cash flow (and taxable income) in year 0. How

Anika [276]

Answer:

The NPV will increase by $5,187 following the restructure of the transaction.

Explanation:

We have the cash outflow due to tax payment as followed:

* Before transaction restructured:

Tax payment of 100,000 * ( 1 - 34%) = $66,000 at the end of Year 0;

=> Present value of this cash outflow is: (66,000) / 1.06 = $(62,264)

* After transaction restructured:

Tax payment at the end of year 1: 50,000 * ( 1 -34%) = $33,000;

Tax payment at the end of year 2: 50,000 * ( 1 -34%) = $33,000.

=> Present value of this cash outflows are: (33,000)/1.06^2 + (33,000)/1.06^3 = $(57,077).

=> Increase in NPV after transaction structured will be equal to the saving in present value of cash out flow = (57,077) - (62,264) = $5,187.

So, the answer is NPV will increase by $5,187.

7 0

3 years ago

Suppose 90-day investments in Britain have a 6% annualized return and a 1.5% quarterly (90-day) return. In the U.S., 90-day inve

Alex_Xolod [135]

Answer: $1.53776

Explanation:

Using the interest rate parity formula :

Forward currency exchange rate (F) = 1.50

SPOT rate (S) =?

Interest rate on domestic currency (Id) = 1%

Interest rate on foreign currency (If) = 1.5%

SPOT RATE(S) is given by;

S = F × (1 + If) ÷ (1 + Id)

S = 1.50 ×(1 + 0.015) ÷ (1 + 0.01)

S = (1.50 × 1.015) ÷1.01

S = 1.5225 × 1.01

S = $1.537725

3 0

3 years ago

Explain internal economics and internal diseconomics ​

Explain internal economics and internal diseconomics