Because the value of the information, in terms of avoiding a mistake on the purchase, is much higher for an automobile than for a pen or pencil, it is more worthwhile to gather this information.
<h3><u>
Explanation:</u></h3>
A customer rating refers to the rating that the customer gives based on the usage and quality of products. It gives an overall experience of a product by the end-user. It is very important to consult with others who use a particular product before making the purchase decisions.
This is because the user of the product knows the advantages and disadvantages of using that product and he knows whether the purchase of the product is worth it or not. In the given example, the purchase of a pen or a pencil is not that important when compared with the car purchase as the later involves a huge amount of money. Thus, the value of the information, in terms of avoiding a mistake on the purchase, is much higher for an automobile than for a pen or pencil, it is more worthwhile to gather this information.
Answer:
Economies of scale
Explanation:
Economies of scale refers to reducing total costs per unit by increasing total output. All companies have certain fixed costs, some companies have higher fixed costs than others, but they always exist. When you are producing something, the cost equation is production costs = variable costs per unit + average fixed costs per unit.
Variable costs vary directly with output, while fixed costs do not, e.g. salaries can be fixed, depreciation, rent, interests, etc. The higher the output, the lower the average fixed cost per unit.
Also, sometimes variable costs can also decrease as total output increases. E.g. you can get higher discounts for purchasing larger quantities of materials and supplies.
Answer:
The correct answer is option D.
Explanation:
The total cost of the firm is $600.
The fixed cost is $100.
The variable cost will be
=Total costs-fixed costs
=$(600-100)
=$500.
The average variable cost will be
=total variable costs/quantity of outputs
=$500/100
=$5 per unit
The price is $4.
So, we see the price is not covering the average variable cost. This means the firm is incurring losses. The firm will thus produce zero units of output.
Answer:
9
Explanation:
In word problems, “as many times as” can be translated into multiplication.
If Molly plants 1.5 times as my pink flowers as white flowers, we would multiply 1.5*(number of white flowers) to find out the number of pink flowers.
Because the question tells us there are 6 white flowers, we multiply 1.5*6, which equals 9.
I hope this helps!