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Answer:
C
Explanation:
C) constant returns to scale.
Returns on scale - when an increase in inputs (capital and labour) cause the same proportional increase in output.
Both the factor nullifies the effects of each other as managerial inefficiency will decrease the effect of external economies of scale in form of bargaining power so constant return to scale is expected.
Answer:
The answer is: $0.15
Explanation:
In a perfectly competitive industry, the price of a good or service is always equal to the marginal revenue for the suppliers. In this case, the price for candy canes is $0.10.
If the price of candy canes' inputs increases by $0.05, then the new price of candy canes will be $0.15 ($0.10 + $0.05).
Answer:
Annual depreciation= $13,200
Explanation:
Giving the following information:
Cutter Enterprises purchased equipment for $72,000 on January 1, 2010. The residual value of $6,000 at the end of five years.
Under the straight-line method, the annual depreciation is constant trough the entire useful life. We need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (72,000 - 6,000)/5= $13,200
Answer:
Inventory TO 9
Gross profit percentage: 55%
Explanation:
Inventory Turnover
where:
COGS 17,100
beginning: 1,800
ending: 2,000
Average Inventory: 1900
Inventory TO 9
Gross profit percentage:
Gross profit percentage: 0.55 = 55%
