All categories

3 years ago

Marginal cost is the average variable cost and the average total cost when they are

Business

1 answer:

fredd [130]3 years ago

8 0

Answer: equal to; at their minimum.

Explanation: Marginal cost is equal to the average variable cost and the average total cost when they are at their minimum.

Thus, when average total cost is increasing, marginal cost must be above average total cost; and when at its minimum, marginal cost is equal to average total cost. Also, when average variable cost is at its minimum, marginal cost equals average variable cost.

Marginal cost is the increase in the cost that accompanies a unit increase in output; the partial derivative of the cost function with respect to output.

You might be interested in

Problem 1-11 For most products, higher prices result in a decreased demand, whereas lower prices result in an increased demand.

andrew-mc [135]

Answer:

The firm will sell 600 units at $20

Explanation:

Giving the following information:

d = annual demand for a product in units

p = price per unit

d = 800 - 10p

p must be between $20 and $70.

Elastic demand

We have to calculate how many units the firm will sell at $20

d=800-10*p=800-10*20= 600 units

3 0

3 years ago

Several employees at a fast-food restaurant call in sick at the last minute. The manager tries to fill in but doesn't know how t

VikaD [51]

Answer: Trained incapacity

Explanation: In simple words, it refers to the idea that after gaining a certain kind of education, skill or experience etc. the level of thinking of an individual cannot go beyond a certain limit.

In the given case, the manager was the upper level employee and was not habitual to the work that was performed by the workers in the restaurant.

Therefore this position in the workplace limited his skills of performing only the managerial work.

Hence from the above we can conclude that the above case depicts trained incapacity.

3 0

3 years ago

The signals that guide the allocation of resources in a market economy are

Vlad1618 [11]

The answer to this question is the term prices. Prices are the value of a certain product or services. A price is the value or amount of money being paid in exchange of the product being bought. In pricing a product or service, a markup is being set to the price.

7 0

3 years ago

Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $11.40, but management expects to reduce the p

drek231 [11]

Answer:

The correct answer is $57.

Explanation:

According to the scenario, the computation of the given data are as follows:

Dividend = $11.40

Growth rate = -0.05

Required rate of return = 0.14

So, we can calculate the price by using following formula:

Price = Dividend × ( 1 + Growth rate) ÷ ( return rate - growth rate)

By putting the value, we get

= $11.4 × ( 1 - 0.05) ÷ ( 0.14 + 0.05)

= $57

3 0

3 years ago

The following facts relate to Krung Thep Corporation. 1. Deferred tax liability, January 1, 2014, $40,000. 2. Deferred tax asset

Vika [28.1K]

Answer:

A.Taxable income $95,000

Enacted tax rate (40%*$95,000)

Income tax payable $38,00

B.Dr Income Tax Expense 80,000

Dr Deferred Tax Asset 14,000

Cr Income Tax Payable 38,000

Cr Deferred Tax Liability 56,000

C.Net income $120,000

Explanation:

Compututation of income taxes payable for 2014.

Taxable income $95,000

Enacted tax rate (40%*$95,000)

Income tax payable $38,000

(b) Journal entry

Dr Income Tax Expense 80,000

Dr Deferred Tax Asset 14,000

Cr Income Tax Payable 38,000

Cr Deferred Tax Liability 56,000

Income before income taxes $200,000

Less Income tax expense

(Current $38,000+Deferred 42,000) 80,000

Net income $120,000

4 0

3 years ago

Marginal cost is ________ the average variable cost and the average total cost when they are ________

Marginal cost is the average variable cost and the average total cost when they are