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NARA [144]
3 years ago
6

Average fixed cost____________.

Business
1 answer:
dimulka [17.4K]3 years ago
7 0

Answer:

d. declines continually as output increases.

Explanation:

The reason for this is that when because fixed cause remains the same as output increases the average fixed cost decreases when output increases. For example the fixed cost of a factory is 10,000 and it produces 100 units. In this case we will divide the fixed cost by the number of units to find the average fixed cost. 10,000/100=100

Now when we increase output to 200 the average fixed cost will decrease.

10,000/200=50.

Mathematically we can view this as the numerator is staying constant whereas the denominator is increasing when output increases, therefore average fixed cost is declining.

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The following financial information is taken from the balance sheets of the Peter Company and the Paul Company:
Iteru [2.4K]

Answer:

Current ratios:

Peter Company Answer = 5

Paul Company Answer = 2.5

Peter company has the higher liquidity than the Paul company. Its current ratio is double than the Paul's.

Explanation:

Company :                 Peter           Paul

Current assets      $200,000    $50,000

Current liabilities   $40,000      $20,000

To calculate Liquidity we will us following ratio formula:

Current Ratio = Current Assets / Current Liabilities

Peter Company

Current Ratio = $200,000 / $40,000 = 5

Paul Company

Current Ratio = $50,000 / $20,000 = 2.5

Peter company has the higher liquidity than the Paul company

8 0
3 years ago
Diet Soda Company has teams with high cohesiveness. Additionally, the teams are normally focused on their commitment to quality
SashulF [63]

Answer:

True

Explanation:

Team cohesiveness by itself does not necessarily lead to higher team productivity, team members might be united and have strong interpersonal relationships, but that doesn't guarantee high productivity or success.  

But when team cohesiveness is paired with a high commitment to quality performance, then you can expect an increase in the productivity of all the team members.  

3 0
4 years ago
The new kingdom of saudi arabia gained great wealth after 1938 as a result of
Scrat [10]
Products such as oil and petroleum stuff is what it so wealthy. 

P.S. i need 2 more brainiest 

8 0
4 years ago
The lemons model predicts that the market price of high-quality used cars will be ______ the true value of high-quality used car
defon

The correct answer is B) less than; high-quality.

The lemons model predicts that the market price of high-quality used cars will be less than the true value of high-quality used cars so that only relatively high-quality cars will be put up for sale in the market.

The Lemons Model refers to the value of some investments and the issues that could follow because the seller and the buyer could have different information regarding the deal. This model was developed by California at Berkley Professor George A. Akerlof, a renowned economist in the 1960s. "Lemons" was a word used in his research because it is how defective used cars are known.

7 0
4 years ago
Read 2 more answers
In order to be classified as a _______________, a firm must be owned by the people who run it on a day-to-day basis.
gayaneshka [121]
The correct answer is private company
3 0
3 years ago
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