Answer:
No, he doesn't show diminishing marginal utility. Yes, he shows increasing marginal utility for Coke.
Explanation:
The law of diminishing returns states that the marginal or addition satisfaction or utility derived from the consumption of a product increase until a pint and then starts to decrease.
Units Total utility Marginal utility
1 10 10
2 25 15
3 50 25
After 3 bottles, John does not show diminishing marginal utility as the marginal utility (as shown above) continues to increase with each additional bottle of coke consumed.
Answer:
if the loss is less than fixed costs
Price exceeds the average variable cost.
Explanation:
If a business is making losses and wants to shut down operations, it will need to keep paying the fixed cost component.
In a case where the loss made from running the business is less than the fixed cost that will be incurred, it is better for the business to keep producing in the short run. The cost of closing up will be higher.
Also the business should stay open if the price of a product is higher than its average variable cost. This is because as production increases the positive contributing margin will eventually exceed cost incurred. This can be achieved by scaling production upward.
Answer:
favorable firm- specific news are reported
Explanation:
The following information is given
Return on the stock is 20%
Beta is 1%
And, the market return is 10%
Based on the above information
All the above represent the positive percentage so this represent that the firm is favorable so for this the particular news would be recorded
hence, the same is relevant
Answer and Explanation:
After the split of AT&T by government into a number of different bodies, in order to prevent monopolistic control over the phone market, the industry experienced an increase in competitor.
This happened because after the split of AT&T, the number of firms in the phone industry increased and other firms who were planning for mergers also changed their decisions and continued working as small, individual firms.
As the number of small firms in the industry increased, so did competition, as no single seller had power over the market now.
D. it can help u narrow down.......
