All categories

3 years ago

Irrespective of whether a firm produces or shuts down in the short run, fixed cost is equal to its _____

Business

1 answer:

Otrada [13]3 years ago

4 0

Answer:

c. sunk cost.

Explanation:

Because in short run, fixed cost doesn't changes with output, that is whether we produce or not, we have to pay for it, so it is considered as Sunk cost. Also like Sunk cost, we don't make decisions with fixed costs.

You might be interested in

Suppose that investment is $130 billion, saving is $110 billion, government expenditure on good and services is $120 billion, ex

Natali5045456 [20]

The amount of tax revenue is $130 billion and teh governemnt budget balance is negative 10 billion

<u>Explanation:</u>

We are given

I = 130 billion, S = 110 billion, G = 120 billion, X = 210 billion and M = 220 billion, we need to derive tax revenue = T??

At equilibrium; S+T +M = I+X+G or

110 + T + 220 = 130 + 210 + 120 or

T + 330 = 460, implies tax revenue (T) = $130 billion

the government budget is calculated as follows:

Government budget = G-T = 120 minus 130 = -10 billion

6 0

3 years ago

Many homes are decorated in spring colors because these colors are deemed to be uplifting; however, most department stores do no

Veronika [31]

Answer:

Time utility

Explanation:

Organizations try to understand the demands of the consumers before before important decisions. From the questions, it is clear that the department stores over time have understood when customers prefers not to stock spring colored items because during the spring and fall, brown and green items are mostly sort after. Thus time utility which entails making available certain products to consumers depending on their needs, weather condition, or seasons is the most likely answer to this question.

3 0

3 years ago

Hagman Company has 110 units in Finished Goods Inventory at the beginning of the accounting period. During the accounting perio

vivado [14]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Beginning Finished Goods Inventory 110 units

During the accounting period:

Produced 190 units

Sold 300 units for $ 250 each.

All units incurred $ 75 in variable manufacturing costs

$ 22 in fixed manufacturing costs.

Hagman also incurred $ 7400 in Fixed Selling and Administrative Costs.

Absorption:

Cost of goods sold= (variable manufacturing costs + fixed manufacturing costs)*units sold= (75+22)*300= 29,100

Operating income= sales - cogs - fixed selling and administrative costs= 75000 - 29100 - 7400= $38,500

Variable:

Variable costs= 75*300= 22500

Operating income= sales - variable costs - fixed manufacturing costs (of production) - fixed selling and administrative costs=

Operating income= 75000 - 225000 - (22*190) - 7400= $40,920

8 0

3 years ago

List the five factors that affect the labor market.

ki77a [65]

Answer:

I think discrimination, unions, unemployment, income inequality, immigration

6 0

4 years ago

Read 2 more answers

1. Raphael pays Better Buy $800 to for a new high-definition television (HDTV) and its installation. He's attracted by Better Bu

dsp73

Answer:

A. Raphael spend $800

B.$800

C.VALUE ADDED

Explanation:

A. The amount of $800 is the amount that would be included in the expenditure method reason been that Rapheal used the amount of $800 to pay for a new high-definition television (HDTV) as well as its installation

B. The total contribution to GDP which is measured by the expenditure method, is the amount of $800 calculated as :

The Stages of Production; The Sale Value - The Cost of Intermediate Goods = VALUE ADDED

The Home Station $50 - $0 = $50

Firedog $650 -$50 =$600

Better Buy $800- $650=$150

TOTAL $800

($50+$600+$150)

C.The contribution to GDP that you found using the expenditure approach corresponds to the sum of the VALUE ADDED at each stage of production

8 0

4 years ago