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Mariana [72]
3 years ago
5

The allocatively efficient quantity of product Z for the whole market is 2 million units. At that quantity, the demand for Z is

at $5 and the average total cost for its single supplier is $7. The average total cost does not fall to $5 until 3.5 million units. Based on this data, the market for product Z is
Business
1 answer:
makkiz [27]3 years ago
3 0

Question Completion:

ANSWER CHOICES

A.  operating with decreasing returns to scale

B.  a natural monopoly

C.  a legal monopoly

D.  monopolistically competitive

E.  productively efficient

Answer:

Based on this data, the market for product Z is:

A. operating with decreasing returns to scale.

Explanation:

For the Average Revenue (Price) to equal the Average Total Cost (ATC) and enable the firms operating in the market to break-even, the firms must increase their production units from 2 million to 3.5 million units.  The conclusion that the market for product Z is operating with decreasing returns to scale for a single supplier is because it will take a 75% increase in production for the average total cost to fall from $7 to $5 for the single producer.  In other words, the percentage increase in production does not result in a proportionate decrease in average total cost.

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Assume Coronado Industries deposits $98000 with First National Bank in an account earning interest at 8% per annum, compounded s
kiruha [24]

Answer:

Future Value= $156,901.16

Explanation:

Giving the following information:

Assume Coronado Industries deposits $98000 with First National Bank in an account earning interest at 8% per annum, compounded semi-annually.

To calculate the future value of this investment, we need to use the following formula:

FV=PV*(1+i)^n

PV= 98,000

i= 0.08/2= 0.04

n= 6*2= 12

FV= 98,000*(1.04^12)= $156,901.16

6 0
3 years ago
Helena Fogarty, the CEO and founder of Mi Ola, states "You have to make decisions….Blowing it is waiting too long to have things
ollegr [7]

Answer:

The Answer is D: Nominal group technique

Explanation:

From the question, it is clear that the CEO of Mi Ola is encouraging everyone to bring up that idea they have in mind. She is encouraging everyone to make a decision as it is never wrong as long as you're moving. Bounded rationality talks about making rational decisions that will most likely satisfy personal needs. This does not seem to be the kind of statement made here. The statement is like a booster to everyone to come up with ideas, which bring us to the concept of nominal group technique. This technique encourages contributions from an entire team and encourages swift agreement on the relative significance of problems, issues, and solutions.

4 0
3 years ago
In October of the current year, Jasmine received a $15,520 payment from a client for 32 months of rent. The rental period begins
serg [7]

Answer:

Jasmine recognize $1,940 this year if she uses the accrual method of accounting.

Explanation:

The Accrual or Matching Concept in accounting requires revenues and expenses to be recorded in the period i which they occur or incur.

The entry to record the receipt of payment is :

Cash $15,520 (debit)

Unearned Rental Income $15,520 (credit)

By the end of the year on 31 December, 4 months rent income starting September will have been earned and entries are as follows :

Unearned Rental Income $1,940 (debit)

Rental Income $1,940 (credit)

Rental Income calculation = $15,520 × 4 / 32

                                           = $1,940

5 0
3 years ago
Only variable costs can be differential costs. Do you agree? Explain.
Nostrana [21]

I do not agree with the given statement that is "Only variable costs can be differential costs.".

The difference in the costs of two alternative decisions is referred to as differential cost.

When a company is faced with several similar options, it must make a decision by selecting one and discarding the other.

Variable costs in cost accounting are costs that vary according to how much a company produces.

Variable costs are typically proportional to output.

As a result, the cost difference between two alternatives, rather than the fixed and variable nature of costs, is relevant for decision-making.

Hence, I disagree with the statement given in the question.

Learn more about variable cost:

brainly.com/question/9212451

#SPJ4

5 0
1 year ago
If total liabilities decreased by $30,000 and stockholders' equity decreased by $10,000 during a period of time, then total asse
boyakko [2]

Answer:

C) $40.000 Decrease

Explanation:

The accounting equation states that: Assets = Liabilities + Equity, so in this case the Assets must decrease in the same amount that change the other side of the equation, $40.000.

4 0
3 years ago
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