When there is a change in activity level, then:
- Total variable cost changes.
- Variable per unit remains constant.
<h3>What happens when activity level changes?</h3>
As a result of the change in activity level, the variable cost will change in total because it increases when there is an increase in number of units produced.
The unit variable cost will however remain the same as the company incurs the same variable cost per unit produced.
Find out more on variable cost per unit at brainly.com/question/26373444.
Answer:
D. society’s scarce resources are used to produce products that align with consumer preferences
Explanation:
Allocation efficiency is a point in the economy when the goods and services being produced are exactly what the customers or people of the economy want and this is a point of production when marginal social benefit of producing the good is equal to the producers marginal cost.
The reason for risk pooling which is beneficial for the insurance industry is best described as it brings together many individuals' premiums so that there is money to cover a selected few losses.
Option B is the correct answer.
<h3>Who is a policyholder?</h3>
The policyholder is an individual who takes an insurance policy from an insurance company. He pays insurance premiums against their respective policies.
The insurance contract is an agreement between the individuals and insurance company to indemnify them at the happening of the specified event and individuals also agreed to pay the insurance premiums on time. The risk pooling allows the insurance company to get insured many people against a small amount of money called an insurance premium.
Therefore, risk pooling is valuable for the insurance company in respect of the insurance policies.
Learn more about the insurance in the related link;
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Answer:
The five main characteristics of a c corporation are:
- limited liability: the owners' liability is determined by the amount of money they invested in purchasing the corporation's stock.
- corporations are owned by stockholders: every single stockholder owns a piece of the corporation, the size of that piece is determined by the amount of stocks.
- double taxation: owners of the corporation suffer from double taxation because first the corporation must pay corporate taxes and then the owners must pay income taxes when they receive dividends.
- corporations are separate entities: corporations exist by themselves, they are born when they are created and die when they are dissolved.
- corporations are professionally managed: the owners elect a board of directors and the board is responsible for hiring professional management.
Explanation:
Answer:
Supply side is the view point of the Firms or the Businesses.
Explanation:
As the law of demand deals with the consumers side, the law of supply deals with the suppliers or the firms/businesses.
this tries to explain the factors that affect the supply, such as the prices of the substitutes and complements, the price of a commodity itself, taxes, government subsidies, technological influences, etc...
in this question, the 1st option, consumer is wrong. However, in certain situations, Government can be acted as a "supplier" (if there is a government monopoly on the supply of a good or a service", and government is a heavy influencer of supply through the implementaion of taxes and subsidies!
