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vagabundo [1.1K]
3 years ago
6

Auctio sells sprockets in a perfectly competitive market. Below are its short-run total variable costs at different output level

s. The firm's fixed cost is $5. The market price of one sprocket is $8. Units Total Variable Cost 0 $0 1 $12 2 $18 3 $22 4 $28 5 $35 6 $43 What is the average total cost of the 5th unit
Business
1 answer:
ra1l [238]3 years ago
3 0

Answer:

$36

Explanation:

Average total cost = total variable cost + fixed cost ) / output

total variable cost  = variable cost x output

35 x 5 = 175

175 + 5) / 5 = 36

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You plan to analyze the value of a potential investment by calculating the sum of the present values of its expected cash flows.
Firlakuza [10]

Answer:

A.- DECREASE

B.- DECREASE

C.- INCREASE

D.- INCREASE

E.- INCREASE

Explanation:

a. The discount rate increases

DECREASE the discoutn factors will be higher therefore, the present values lower.

b. The cash flows are in the form of a deferred annuity, and the total to $100,000. You learn that the annuity lasts for 10 years rather than 5 years, hence that each payment is for $10,000 rather than for $20,000

DECREASE Because the cashflow is generate on a longer period there is more exposure to discount rates.

c. The discount rate decreases

INCREASE The discount factor are lower. This situation is the opposite as (a)

d. The riskiness of the investment's cash flows <u>decreases</u>

INCREASE a lower risk derivates in lower cost of capital thus, lower iscount rates. This increase the present value of the cashflow.

e. The total amount of cash flows remains the same, but more of the cash flows are received in the earlier years and less are received in the later years.

INCREASE as most of the future cash flows are at the beginning they have less exposure to time value of money.

4 0
3 years ago
Under the constant-money-growth-rate rule, the annual money supply will be constant at the average annual growth rate of:_______
tiny-mole [99]

Answer:

real GDP

Explanation:

The above rule was proposed by Milton Friedman that the money supplied by the central bank be increased by constant percentage on annual basis. In other words, constant money growth rate rule suggested money supply growth rate be equal to GDP growth rate annually.

According to Friedman, monetary policy contributes to fluctuation in an economy. He suggested that the best way to stabilize a fluctuating economy is to allow the central bank increase money supply in the long run by a targeted amount annually irrespective of the situation of the economy.

6 0
4 years ago
Because saudi arabia and australia have ____, saudi arabia can specialize in the production of crude oil and petroleum products,
Helga [31]

Because saudi arabia and australia have <u>absolute advantage</u>, saudi arabia can specialize in the production of crude oil and petroleum products, and australia can specialize in the production of wool

<h3>What is government?</h3>

Government can be defined as a group of people with the authority to govern a country.

So therefore, because saudi arabia and australia have absolute advantage, saudi arabia can specialize in the production of crude oil and petroleum products, and australia can specialize in the production of wool

Learn more about government:

brainly.com/question/18464634

#SPJ4

5 0
2 years ago
The Lady Eagles won 70% of their 30 basketball games this season How many games did they win?
Nitella [24]
They won 21 out of their 30 basketball games.
5 0
3 years ago
Read 2 more answers
D.v.g. (a minor) was injured in a one-car auto accident in hoover, alabama. the vehicle was covered by an insurance policy issue
diamong [38]

Answer:

Yes, the court ruled in favor of D.V.G.'s mother, because of the principle that contracts entered by minors are not void, but voidable, and that they do have an effect on the parties, but if voided, they cannot be enforced.

In this case, the minor died before the contract was ratified by the court, but the minor hadn't voided the contract, so it was still good at the moment of his death. The minor had the chance of either approving or rejecting the contract while still living, and decided not to revoke it.

Explanation:

NATIONWIDE MUTUAL INSURANCE COMPANY and State Farm Mutual Automobile Insurance Company v. Barbara Walker WOOD, as administratrix of the estate of D.V.G., a minor, deceased, and K.C.T., a minor, by and through Earnest T., his father and next friend.  1111486. Decided: February 22, 2013

As this Court has stated, <em>“ ‘[i]t is well settled by the authorities that infants are not liable on any of their contracts, except for necessaries. With the exception, all other contracts of infants, whether executory or executed, may be avoided or ratified at the election of the infant.’ ”</em>

The final ruling was:

<em>"Under Alabama law, an insurance company is bound to a settlement agreement negotiated on behalf of an injured minor, even if that minor dies before the scheduling of the court hearing that all parties agreed was necessary to obtain approval of the settlement agreement. In accordance with the parties' understanding, such a hearing is still required, and the minor's death does not render that hearing impossible. We thus answer in the affirmative the question certified to this Court."</em>

6 0
3 years ago
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