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spayn [35]
3 years ago
9

A firm decides to increase output by opening another plant. In doing so their average total cost changed from $50 with one plant

to an average total cost of $40 with two plants. This implies the firm is experiencing:_______
Business
1 answer:
Burka [1]3 years ago
5 0

Answer:

Economies of scale

Explanation:

The firm is experiencing economies of scale. Economies of scale result in a decreased average cost of production. Production increases and therefore the fixed cost is distributed more and average fixed cost becomes lesser and lesser as output increases. This leads to a decline in average total cost( As average total cost is the sum of average variable cost and average fixed cost, therefore a decline in average fixed cost leads to a decline in average total cost). This can be seen by an assymptotic average fixed cost for the firm which experiences economies of scale.

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If you put $7000 in a saving account that earns 2% interest for 10 years, how much will you have in
blondinia [14]

Answer:

1) 56,000

2) 9,950

3) 8,479

4) 25,500

Explanation:

1)20% of 70.000=56.000

2)5% of 10.000=9.950

3)21% of 10.500=8.479

4)15% of 30.000=25.500

4 0
3 years ago
The job _______ results in two written statements: one that specifies the responsibilities, duties and working conditions of the
elena-14-01-66 [18.8K]

Answer:

The word "Analysis" would most likely fit the statement.

Explanation:

The job <em>analysis</em> results in two written statements: one that specifies the responsibilities, duties, and working conditions of the job, and the other setting forth the minimal education and skills required to do the job.

7 0
3 years ago
A letter from Coulton Engineering Company dated September 12 is to be filed in the Coulton file. How should you arrange it in th
ArbitrLikvidat [17]
<span>C. By date with the latest date in the front of the folder </span>
4 0
3 years ago
Janice and Shane are both senior software analysts. They have worked together on projects for six years and get along very well.
dybincka [34]

Answer:option D

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3 0
3 years ago
A competitive firm currently produces and sells 7,500 units of output at a price of $2.50 per unit. The firm's average fixed cos
saveliy_v [14]

Answer:

A. $-2,250

B. The firm should continue to operate in the short run because price is greater than average variable cost

C.The firm should exit in the long run because it is making losses

D. In the long run, prices would increase because in a competitive firm, price must equal average cost. As firms exit the industry, supply would fall and this would lead to an excess of demand over supply. As a result, price would rise

Explanation:

A perfect competition is characterised by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

Profit = Total revenue - Total cost

( $2.50 -  $2.80) × 7,500 = $-2,250

The firm is earning a loss

A firm should shutdown in the short run if price is less than average variable cost.

Average variable cost = average total cost- average total cost

 $2.80 - $0.75 = $2.05

2.50 > 2.05 so the firm should continue to operate in the short run.

The firm should exit in the long run because it is making losses

In the long run, prices would increase because in a competitive firm, price must equal average cost

I hope my answer helps you.

3 0
3 years ago
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