Which of the following illustrates economies of scale , diseconomies of scale , and constant returns to scale ?

Business

1 answer:

Lerok [7]3 years ago

4 0

Answer: d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale

Explanation:

Economies of scale occurs when the increase in production by companies brings about a reduction in cost. Diseconomies of scale is when a rise in production leads to an increase in cost as well. For a constant return to scale, the cost remains the same.

Therefore, the answer will be option D "Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale".

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Equipment was purchased for $68,000 on January 1, 2013. Freight charges amounted to $2,800 and there was a cost of $8,000 for bu

Dahasolnce [82]

Answer:

a. $26,720

Explanation:

Before computing the accumulated depreciation, first we have to compute the original cost of the equipment, after that the depreciation expense. The calculation is shown below:

Original cos t = Equipment purchase cost + freight charges + installment charges

= $68,000 + $2,800 + $8,000

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= (Original cost - residual value) ÷ estimated life in years

= ($78,800 - $12,000) ÷ 5 years

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Now the accumulated depreciation is

= Depreciation expense × number of years

= $13,360 × 2 years

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mote1985 [20]

The industry is currently in long-run equilibrium. The economy now goes into a recession and average incomes decline. The result will be an increase in output, but not in the price, of the product. This is further explained below.

<h3>What is a product?</h3>

Generally,

In conclusion, The market is in a state of long-term balance. There is currently a drop in typical salaries and the economy is entering a recession. As a consequence, production will rise without corresponding increases in cost.