All categories

4 years ago

If a production possibilities frontier appears as a downward sloping straight line, which of the following occurs?

Business

1 answer:

lora16 [44]4 years ago

8 0

Answer:

The correct answer is option d.

Explanation:

A production possibility curve shows the different bundles of two goods that can be produced using all the resources and technology available.

The slope of the curve represents the opportunity cost of producing a good.

We cannot increase the production of both goods, so we need to sacrifice one good if we want to increase the production of the other.

A straight line downward sloping frontier means that the opportunity cost of production is constant. This means that the resources are perfectly substitutable in the production of two goods. So throughout the production process, the marginal opportunity of producing each additional unit will remain constant.

You might be interested in

A small town is served by many competing supermarkets, which all have the same constant marginal cost. Use the black point (plus

Delicious77 [7]

Answer and Explanation:

From the diagram in the picture (please find attached) we see that the competitive price and quantity lies at the marginal cost( which the producer cannot go below). The consumer surplus lies just below the demand curve(the downward sloping curve with) and the producer surplus is above the marginal cost. Note the producer surplus is the difference between what the supplier is willing to sell and how much he actually sells, the marginal cost is the lowest the supplier would want to sell. This applies to the consumer surplus too

The producer surplus region was indicated with vertical strokes in the diagram attached

4 0

3 years ago

Arnie made 800,000 after deducting expenses when he sold the helicopter

Maksim231197 [3]

I think the correct answer is c , hope I helped

6 0

3 years ago

What are the compromises when crating the constitution

Anettt [7]

Answer:

The three major compromises were the Great Compromise, the Three-Fifths Compromise, and the Electoral College. The Great Compromise settled matters of representation in the federal government.

it should be right if not sorry

6 0

3 years ago

A comparative balance sheet for Culver Corporation is presented as follows.

laila [671]

Answer:

Increase in cash = $50,740

Explanation:

The statement of cash flows for 2020 can be prepared as follows:

Culver Corporation

Statement of Cash Flows

For December 31, 2020

Particulars $ $

Net income 127,440

Adjustment to reconcile net income:

Depreciation expenses (w.1) 26,740

(Increase) decrease in current assets:

Increase in accounts receivable (w.2) (15,740)

Decrease in inventory (w.3) 9,260

Increase (decrease) in current liabilities:

Decrease in accounts payable (w.4) (13,260)

Net cash from operating activities 134,440

Cash Flow from Investing Activities

Sales of land (w.5) 39,260

Purchase of equipment (w.6) (59,740)

Net cash from investing activities 20,480

Cash Flow from Financing Activities

Cash dividends paid (63,220)

Net cash from financing activities 63,220

Increase / (Decrease) in cash 50,740

Beginning cash balance 22,000

Ending cash balance  72,740

Workings:

w.1: Depreciation expenses = Accumulated Depreciation in 2020 - Accumulated Depreciation in 2019 = $70,220 - $43,480 = $26,740

w.2: Increase in accounts receivable = Accounts receivable in 2020 - Accounts receivable in 2021 = $83,220 - $67,480 = $15,740

w.3: Decrease in inventory = Inventory in 2020 - Inventory in 2019 = 181220 190480 = -$9,260

w.4: Decrease in accounts payable = Accounts payable in 2020 - Accounts payable in 2019 = ($35,220 - $48,480) = $13,260

w.5: Sales of land = Land in 2019 - Land in 2020 = ($111,480 - $72,220) = $39,260

w.6: Purchase of equipment = Equipment in 2020 - Equipment in 2019 = $261,220- $201,480 = $59,740

7 0

3 years ago

In reviewing activity for July, the controller of Mathis, Inc., collected the following data concerning direct materials: Actual

soldi70 [24.7K]

Answer:

$36,400 U

Explanation:

Actual costs = $ 1,643,800

Actual inputs at standard price = $ 1,556,500

Price variance = ($ 1,556,500 – $1,643,800)

= $87,300 Unfavorable

Actual inputs at standard price = $ 1,408,450

Flexible budget (Standard Allowed for Good Output):

= $14.1 × 103,500

= $1,459,350

Efficiency variance = ($1,459,350 - $1,408,450)

= $50,900 Favorable

Direct materials cost variances:

= Price variance - Efficiency variance

=$87,300 U – $50,900 F

= $36,400 U

8 0

3 years ago