Answer: Economies of scale pertain to the long run only.
Explanation:
Economies of Scale is a long run phenomenon and is defined as the cost advantage that a firm experiences as a result of an increase in its output. The benefit arises as a result of the inverse relationship between quantity produced and per-unit fixed cost. The higher the quantity of output that are produced, the lower the per-unit fixed cost.
Economies of scale leads a fall in the average variable costs with an increase in the level of output. This is as a result of synergies and operational efficiencies which comes into place due to the increase in the scale of production. Economies of scale is a vital concept as it shows the competitive advantages big firms have over the small firms.
Answer:
Explanation:
Attached is a solution to the question
Answer:
The correct answer is D
Explanation:
Screening process is the procedure which is used to evaluate the applicant qualifications for the job and the potential job fit for the position to which the person applied for. It involves or a variety of the elements like the skills grounded assessments, pre employment testing and interviewing candidate.
Under this process, the applicant profile is evaluated in order to check the eligibility of the applicant for the job. So, it involves interviewing the potential group members.
Answer:
Firm X is facing low elasticity of demand at its current level of output.
Explanation:
This is why Firm X is able to set such a high price of $24/unit when its marginal cost is $5/unit. Usually, a monopolist does not want to set prices and outputs in the inelastic range of the demand curve. It is always interested in setting profit-maximizing prices and outputs. Firm X should be wary of setting too high prices because consumers can decide to lower their demand.
Answer:
menu costs of inflation
Explanation:
Menu costs of inflation refer to the costs of having to modify the prices as a result of the frequent change in the price levels of the products that force businesses to make constant updates on their sales prices. According to this, the answer is that this is an example of menu costs of inflation as the grocery store has to update the prices of the products frequently because of the high rate of inflation.
