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slamgirl [31]
3 years ago
10

Suppose the production of long-distance airline flights is described by a fixed proportion production process in which three cre

w members (i.e., labor) are required for each aircraft (i.e., capital). If the airline operates with four crew members per plane, then we know that:
Business
1 answer:
Elina [12.6K]3 years ago
3 0

Answer:

production at this point is technically inefficient.

Explanation:

Efficient production processes requires a producer to either minimise the inputs they are using at a given output or maximise output level at a given input level.

Technical inefficiency is when input is not minimised or output maximised.

In the given instance the fixed cost (airplane) remains unchanged. However crew members can be variable.

If the airplane only requires 3 crew members and 4 crew members are now used, the company is not minimising inputs used so they are technically inefficient.

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The Income Statement for Pumpkin Co. is shown below:
Alik [6]

100000875466555547899977

5 0
3 years ago
Variable costs are
Semmy [17]

Answer:

the costs that change depending on a company's performance

Explanation:

Variable costs refer to the costs that fluctuate with the level of production. An increase or decrease in the output level results in variable costs moving in the same direction. If the business stops production, the variable costs will be nil.

Raw materials and packaging costs are good examples of variable costs. The more a company produces, the more materials it consumes, and the higher the costs of purchasing the materials.

6 0
3 years ago
Accounts receivable arising from sales to customers amounted to $84,000 and $74,000 at the beginning and end of the year, respec
solmaris [256]

Answer:

$330,000

Explanation:

Change in WC = Opening receivables - Closing receivables

Change in WC = $84,000 - $74,000

Change in WC = $10,000

The decrease in working capital is $10,000

Cash from operating activities = Net income + Decrease in Working Capital

Cash from operating activities = $320,000 + $10,000

Cash from operating activities = $330,000

Thus, the cash from operating activities is $330,000

4 0
3 years ago
Which of the following methods does not help reduce marketing risks?
Nitella [24]

Answer: The following methods does not help reduce marketing risks: <u><em>Integrate vertically to insure a market or form a marketing alliance.</em></u>

Integrating a firm vertically and thereby forming a marketing alliance won't reduce the marketing risks for any organization.

<u><em>Therefore, the correct option in this case is (c).</em></u>

7 0
3 years ago
Direct strategies of power are used when: A. one is an expert or has more knowledge. B. one is a novice or has less knowledge. C
ziro4ka [17]

Answer:

(A) one is an expert or has more knowledge.

Explanation:

Power is an individual's ability to influence others and do what the individuals wants as well as persons ability to resit the influence attempts of others.

3 0
3 years ago
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