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2 years ago

If a firm enjoys economies of scale,

Business

1 answer:

disa [49]2 years ago

5 0

Answer: Its average total cost will decrease as production increases

Explanation: Variable cost will decrease as a result of economies of scale, therefore the cost/unit or average total cost will decrease.

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Explain briefly what kind of Consumer Service is particularly open to an entrepreneur.

Crazy boy [7]

Answer:

Almost any Consumer Services enterprise is amenable to the entrepreneur, from personal services like pet care and yard maintenance to a clinical psychology and counseling practice. Particularly fertile in our current business landscape are Consumer Services tied to computers, electronics, the Internet, and social media.

Explanation:

3 0

2 years ago

A month ago, you bought a one-year bond with a value of $100 that pays a fixed interest rate of 5 percent per year. The interest

My name is Ann [436]

Answer:

less desirable to other investors

Explanation:

<u>Given</u>: Current fixed coupon rate 5%

Market rate of interest 5%

New Market Rate of Interest 6%

Value of a bond is inversely related to economy interest rate or the yield to maturity (YTM). Value of a bond is expressed by the following equation:

$B_{0}\ = \frac{C}{(1\ +\ YTM)^{1} } \ +\ \frac{C}{(1\ +\ YTM)^{2} } \ +....+\ \frac{C}{(1\ +\ YTM)^{n} }\ +\ \frac{RV}{(1\ +\ YTM)^{n} }$

wherein, C = Coupon rate of interest

YTM = Market Rate of Interest or interest rate in the economy or investor's expectation

n= Years to maturity

RV = Redemption value

In the given case, C = YTM i.e par value bond. When ytm rises to 6%, the value of the bond shall fall making such a bond less attractive since it represents lower coupon payments than investor expectations.

Thus, now the bond would be less desirable to other investors.

3 0

3 years ago

______ ratios measure how much operating income an organization is able to generate relative to assets, owners' equity, and sale

tankabanditka [31]

According to business strategy, the <u>Profitability</u> ratios measure how much-operating income an organization can generate relative to assets, owners' equity, and sales.

<h3>What are Profitability ratios?</h3>

Profitability ratios s a form of financial method or procedure in which firms assess or evaluate the ability to generate income or revenue based on the capacity and resources.

<h3>Different types or methods of Profitability ratios:</h3>

Gross Profit Ratio
Operating Ratio
Operating Profit Ratio
Net Profit Ratio
Return on Investment

Hence, in this case, it is concluded that the correct answer is "<u>Profitability ratio."</u>

Learn more about the Profitability ratio here: brainly.com/question/25253887

4 0

2 years ago

With respect to how economists study the economy, which of the following statements is most accurate? a) Economists study the pa

vampirchik [111]

Answer:

Option (c) is correct.

Explanation:

Economists refers to the people who are doing research, analyzing data and measure the qualitative activities in terms of money.

For research perspective, one should have proper knowledge about the research problem that he or she need to address in his or her research. Then he should collect the reliable and accurate data for the analysis. Data is very important for a particular research study.

Once the data is ready to analyze then the economists run the data and interpret the results.

5 0

3 years ago

on august 1, paid $72,000 cash to purchase houtte's 9%, six-month debt securities ($72,000 principal), dated august 1.

Kitty [74]

Here short term investment is debited as it increased the asset and credited the cash as decreased the asset.

here cash is debited as it increased the asset and credited the interest revenue as it also increased the revenue.

What Are Short-Term Investments?

Marketable securities, commonly referred to as temporary investments or short-term investments, are financial investments that can be quickly converted to cash, usually within five years.
After only three to twelve months, many short-term investments are sold or turned into cash. CDs, money market accounts, high-yield savings accounts, government bonds, and Treasury bills are a few typical examples of short-term investments.
Short-term investments, also known as marketable securities or temporary investments, are financial investments that can be easily converted to cash, typically within 5 years.
Typically, these investments are high-quality and highly liquid assets or investment vehicles.
Short-term investments may also specifically refer to financial assets of a similar kind, but with a few additional requirements, that are owned by a company.

To know more about Short-term investment visit:

6 0

1 year ago