Answer:
d. to decrease and equilibrium quantity to increase.
Explanation:
As we know that
Equilibrium is the point at which the quantity demanded equal to the quantity supplied
In equation, it is
Equilibrium = Quantity demanded = Quantity supplied
Now if the supply of a product increases, the equilibrium price decreases while the equilibrium quantity increases
And, if the supply of a product decreases, the equilibrium price increases while the equilibrium quantity decreases
Answer:
a. A reduction in business property taxes: MC-No change; AVC-No change; AFC-Shift down; ATC-Shift down. (Fixed cost)
b. An increase in the nominal wages of production workers: MC-Shift up; AVC-Shift up; AFC-No change; ATC- Shift up. (Variable cost)
c. A decrease in the price of electricity: MC-Shift down; AVC-Shift down; AFC-No change; ATC-Shift down. (Variable cost)
d. An increase in insurance rates on plant and equipment: MC-No change; AVC-No change; AFC-Shift up; ATC-Shift up. (Fixed cost)
e. An increase in transportation costs: MC-Shift up; AVC-Shift up; AFC-No change; ATC-Shift up. (Variable cost)
Explanation:
Where;
MC is the Marginal Cost.
AVC is the Average Variable Cost.
AFC is the Average Fixed Cost.
ATC is the Average Total Cost.
1. Marginal Cost (MC) can be defined as the cost incurred in the production of one unit of a product.
2. Average Variable Cost (AVC) can be defined as the total variable cost per unit of production. It is calculated by dividing total variable cost (TVC) by total output of production (Q);
AVC = \frac{TVC}{Q}
3. Average Fixed Cost can be defined as the fixed cost per unit of production. It is calculated by dividing fixed cost (FC) by total output of production (Q);
AFC = \frac{FC}{Q}
4. Average Total Cost (ATC) can be defined as the overall cost of production divided by total output of production. It is calculated by dividing total cost by total output of production or by adding TVC and TFC.
Answer:
The contract is voidable by Marty.
Explanation:
This is a voidable contract since minors are not allowed to engage in contracts unless they contain basic necessities, e.g. food.
US contract law considers that minors are not aware of the legal implications and obligations of a legal contract and therefore they cannot be held responsible for them. That is why the contract is voidable by Marty. The seller, Cream-of-the-Crop Cycles, should know that minors cannot sign contracts and unless Marty tricked them using a fake ID, there is not much to do.