Answer:
a) We have:
The firms total cost function: TC = 5,000 + 500Q
Average cost: ATC = (5,000 / Q) + 500
b)The firm would choose to be very large if it wanted to minimize the average total cost.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
A firm has a fixed production cost of 5,000 and a constant marginal cost of production of 500 per unit produced.
a) What is the firms total cost function? Average total cost?
b) If the firm wanted to minimize the average total cost, would it choose to be very large or very small? Explain.
The explanation of the answer is now provided as follows:
a) What is the firms total cost function? Average total cost?
Let Q represents quantity of output produced by the firm.
Since the marginal cost of production is constant, this implies:
VC = Variable cost = 500 * Q = 500Q
Also, we have:
FC = Fixed production cost = 5,000
Since TC = FC + VC, the total cost function (TC) can then be obtained as follows:
TC = 5,000 + 500Q
Since ATC = TC / Q, the average cost (ATC), can also be obtained as follows:
ATC = (5,000 / Q) + (50Q/Q)
ATC = (5,000 / Q) + 500
Therefore, we have:
The firms total cost function: TC = 5,000 + 500Q
Average cost: ATC = (5,000 / Q) + 500
b) If the firm wanted to minimize the average total cost, would it choose to be very large or very small? Explain.
The firm would choose to be very large if it wanted to minimize the average total cost.
Because fixed expenses dominate total costs at low levels of output, average total cost starts out high. In terms of Mathematics, the denominator is so tiny that average total cost is huge. As fixed costs are spread over a larger quantity of output, the average total cost decreases. Therefore, the firm would choose to be very large if it wanted to minimize the average total cost.
A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a prime location near Washington, D.C. They estimate it will cost $50 per prisoner to process the paperwork at this new location. The county is paid a $75 commission for each new prisoner they process. If the holding area at this new location has design and effective capacities of 10,000 and 7,500 prisoners processed annually, respectively, and 5,000 prisoners will be processed per year, what will be the utilization of the holding area
Answer:C. $50,000
Total revenue would be $300,000. Total cost would be $250,000 (fixed = $50,000; variable = $200,000).
Explanation:
why is agriculture considered as a basic level of occupation explain with of explain with example
Answer:
Explanation:
Agriculture is important occupation throughout the world because it is like a backbone to all other occupations and especially its important for we humans to survive. If there is no agriculture then there will not be any healthy population to support any other occupation and hence a very poor world.
What type of loan uses real estate for security?
A point of sale
A line of credit
. A disclaimer (it’s not disclaimer)
A second mortgage
Answer:
A second mortgage loan uses real estate for security
Expenses that are not easily traced to a specific department, and which are incurred for the joint benefit of more than one department, are
Answer:
Indirect expenses
Explanation:
Indirect expenses are those that are usually sent on more than one department, and it is not easily traced to one source.
They are usually costs that result from running the business as a whole.
Examples of indirect expenses includes rent, taxes, advertising, salaries, administrative expenses, distribution and selling expenses.
These expenses will eventually be shared between different departments in the organisation and cannot be traced to only one source, so it is called indirect expense.
If price was $1.40 per gallon and increased to $2.00 per gallon, how does quantity of gasoline demanded change
Answer:
Demand decreases.
Explanation:
The demand decreases because the price increase would cause drivers to travel less, meaning that gasoline sales would go down.
A claim that is sent for reimbursement that contains all the required data elements to process the claim is referred to as a:
Answer:
Clean claim
Explanation:
A clean claim is defined as one that has complete documentation, no defect, special circumstance, or impropriety.
They meet all the requirements for easy processing.
Claims are made on Medicare services for reimbursement by insurance companies.
The other type of claim is the other-than-clean claims that requires further investigation before reimbursement is made.
Tamekia reports that the market leader in the TZX mitt category has 60 percent of all sales in the market and spends $240,000 a year, or 60 percent of all advertising expenditures, to support the brand. Under the share of market/share of voice system, Great Catch should be prepared to spend at least ________ if it hopes to achieve a market share of 30 percent.
Answer: $120000
Explanation:
Share of voice refers to the measure of the exposure that a particular business gets when it's being compared to other competitors. The share of market is the percentage of a market that a company earns.
From the information given, since 60% of the market sales equate to $240000 spent a year, then in order to achieve a market share of 30%, ½ of $240000 will be spent which is $120000. Therefore, Great Catch should be prepared to spend at least $120000 if it hopes to achieve a market share of 30 percent.
The contract Jack is signing has a clause that protects his assets from a deficiency judgment in case of foreclosure. What is this called?
Answer:
exculpatory clause
Explanation:
Exculpatory clause in contracts is a clause that protects the person issuing it from liabilities of damages to an asset that may not be in their possession or out of their control. It prevents one party from the holding the other liable for damages to an asset during the execution of a contract. This is what Jack has done to protect himself from the liabilities that may result from any damages during the contract.
Mother and Daughter Enterprises is a relatively new firm that appears to be on the road to great success. The company paid its first annual dividend yesterday in the amount of $.28 a share. The company plans to double each annual dividend payment for the next three years. After that time, it is planning on paying a constant $1.50 per share indefinitely. What is one share of this stock worth today if the market rate of return on similar securities is 11.5%
Answer:
$12.43
Explanation:
Price of the stock can be determined by calculating the present value of the stock
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 0.28 x 2
Cash flow in year 2 = 0.56 x 2
Cash flow in year 3 = 1.12 + 1.50 0.115
I = 11.5
PV = 12.43
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
According to the assumptions of the quantity theory of money, if the money supply increases 5 percent, then a. the price level would be unchanged and real GDP would rise by 5 percent. b. the price level would rise by 5 percent and real GDP would be unchanged. c. both the price level and real GDP would rise by 5 percent. d. both the price level and real GDP would be unchanged.
Answer:
C
Explanation:
Quantity theory of money : money supply x velocity = price x output
money supply x velocity = nominal GDP
It is assumed that velocity is constant. So, if money supply increases, both the price level and real GDP would rise by 5 percent
A motorist from State A struck and injured a pedestrian in State B. The pedestrian, a State B resident, brought an action in a State B federal court against the State A motorist, seeking $100,000 in damages. The summons and complaint were served on a receptionist at the motorist's place of business in State A. State A's rules permit service of process in this manner, while State B's rules do not. If the motorist moves to dismiss the complaint on the basis of improper service of process, is the court likely to dismiss the action
Answer: C. No, because the federal rules permit service under the rules of the state in which service will be effected.
Explanation:
The case was filed in federal court so the rules regarding the service of the summons will be according to the rules of federal courts.
Rule 4 of the Federal Rules of Civil Procedure allows for the service of a summons to be based on the service rules of the state where the service is to be made. As the service was done in State A and State A allows service to be at defendant's place of business, proper procedure was followed and so the court will not dismiss the action.
By hiring your children, you can
pay low wages.
show how much you care.
transfer wealth without estate taxes.
avoid payroll taxes. (Not the correct answer)
Answer: transfer wealth without estate taxes.
Explanation:
There are several methods to avoid having to pay estate taxes when passing on wealth to your children and this is one of them. By paying your children more than you should actually be paying them, this would be counted as payroll.
Of course your children will just get charged higher payroll taxes but you would have avoided estate taxes. Other methods include gifting them money up to a certain extent every year or using a Grantor Retained Annuity Trust.
For a negative externality, the __________________________ than the costs imposed on society as a whole. private costs of an action are less social costs of an action are less private benefits of an action are more social benefits of an action are more
Answer:
private costs of an action are less
Explanation:
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. A good has negative externality when private costs of an action are less the costs imposed on society as a whole.
An example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced.
Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
Coase theorem has been proposed as a solution to externality. According to this theory, when there are conflicting property rights, bargaining between parties involved can lead to an efficient outcome only if the bargaining cost is low
Another solution to negative externality is through the activities of charities. Charities can raise donations to limit or regulate the activities of firms that constitutes a negative externality.
Margot has fallen in love with a three-bedroom, 2,500-square-foot property in her friend’s neighborhood. It’s listed for $400,000. However, just down the street, another three-bedroom, 2,400-square-foot home very similar to the one Margot loves was just listed for $350,000. Margot and her agent immediately make an offer on the second property. Which economic principle is at work here?
Answer:
subsititution
Explanation:
Since in the situation it is mentioned that margot has fallen with 3 set bedroom i.e. 2500 square foot and its amount is $400,000. Now there is another three set bedroom of 2,400 square foot and its amount is $350,000 so here two options are given and according to the price he opted for the second property
So out of two choices he should opt for one that means it is a subsititution economic principle
What correlation do most economists expect with a rising or high gross domestic product, high labor productivity, and low inflation
Answer:
a healthy economy
Explanation:
In the case when there is an increase or there is high gross domestic product , the labor productivity is also higher and at the same time the inflation is less so this means the more and more people are employed and they can spend less money to buy more products so this represent that the economy is healthy
To avoid financial worry, keep the cost of housing (including mortgage, interest, insurance, and property taxes ) below_______of pre tax income.
A. 05%
B. 28%
C. 50%
D. 15%
All the housing costs which include (mortgage, interest, insurance, and property taxes) should be below 28 percent of pre-tax income to avoid financial stress.
What is the 28% rule?
The 28 percent rule states that your house payment, including property taxes and insurance, should not exceed that percentage of your monthly gross income.
This is also known as a decent general guideline for mortgage payments or a safe mortgage-to-income ratio.
Therefore, Option B. 28% is the correct answer.
To learn more about the 28% rule, refer to the link:
https://brainly.com/question/26173267
In analyzing the differences among Theories X, Y, and Z managers, it is appropriate to determine that Multiple Choice Theory Z managers believe that employees prefer to be directed. Theory Z managers understand that workers prefer to work by themselves, and will do their best work individually rather than with a team. Theory Z managers believe that getting employees more involved in work-related decisions will generally increase productivity. Theory Z managers believe that decision making is not part of an employee's responsibilities.
Answer:
Theory Z managers believe that getting employees more involved in work-related decisions will generally increase productivity.
Explanation:
In simple words, Theory Z can be understood as the management strategy that combines American as well as Japanese managerial concepts and is characterized by tight job stability, consensus policy making, delayed assessment and advancement processes, and personal responsibility inside a group setting, among other things.
If the number of consumers in the market for good A decreases, what will happen to the equilibrium price and quantity of good A?
a. The equilibrium price and quantity will both decrease.
b. The equilibrium price and quantity will both increase.
c. The equilibrium price will increase and equilibrium quantity will decrease.
d. The equilibrium price will decrease and equilibrium quantity will increase.
Answer:
A, The equilibrium price and quantity will both decrease.
Explanation:
The less consumers the lower the equilibrium price and quantity goes.
How long must one wait (to the nearest year) for an initial investment of $1,000 to triple in value if the investment earns 8% compounded annually
Answer:
t = 14 years
Explanation:
The computation of the time period is shown below:
As we know that
Future value = Present value ×(1 + rate of interest)^time period
$3,000 = $1,000 × (1 + 0.08)^time period
3 = 1.08^time period
Now multiply log to both sides
So,
lof(3) ÷ log(1.08) = t
t = 14 years
Crane Co. pays its employees twice a month, on the 7th and the 21st. On June 21, Crane Co. paid employee salaries of $4930. This transaction would decrease net income for the month by $4930. be recorded by a $4930 debit to Salaries and Wages Payable and a $4930 credit to Salaries and Wages Expense. increase owner's equity by $4930. decrease the balance in Salaries and Wages Expense by $4930.
Answer:
Crane Co.
This transaction would decrease net income for the month by $4930.
Be recorded by a $4,930 debit to Salaries and Wages Expense and a $4,930 Credit to Cash.
Explanation:
a) Data and Analysis:
June 21: Salaries Expense $4,930 Cash $4,930
b) The transaction that affects the Salaries and Wages Payable is the unpaid salaries and wages expense that are accrued but not yet paid to employees. However, the above transaction will increase the amount in the Salaries and Wages Expense by $4,930 and decrease the Cash by the same amount. It will also reduce the net income for the month by $4,930.
Question Mode Fill in the Blank Question Fill in the blank question. The ABC Company had its highest level of production in May when they produced 4,000 units at a total cost of $110,000 and its lowest level of production in November when they produced 2,500 units at a total cost of $87,500. Using the high-low method, the estimated fixed costs are $ .
Answer:
Results are below.
Explanation:
To calculate the fixed cost under the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (110,000 - 87,500) / (4,000 - 2,500)
Variable cost per unit= $15
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 110,000 - (15*4,000)
Fixed costs= $50,000
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 87,500 - (2,500*15)
Fixed costs= $50,000
The Bureau of Labor Statistics produces data on unemployment based on the number of people collecting unemployment insurance. a. True b. False
Answer:
FALSE
Explanation:
A person is considered unemployed if he / she does not have a job and has searched for a job within the last 4 weeks
Unemployment rate = (number of unemployed / labour force) x 100
To collect data on unemployment, The Bureau of Labor Statistics conducts a survey every month known as the Current Population Survey (CPS).
types of unemployment
structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition. Structural unemployment tends to be permanent.
The geologist lost his hob permanently due to increase in wages (polices)
Frictional unemployment: the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
Voluntary unemployment: e.g. worker at a fast-food restaurant who quits work and attends college.
Cyclical unemployment: it occurs as a result of fluctuations in the economy. Unemployment would be high in a downturn and low in a boom
Jen's Shampoo decides to decrease the sales price for a bottle of shampoo from $28 to $23. The variable costs decrease from $12 to $8 and the total fixed costs decrease from $30,000 to $18,000. The changes result in the number of units sold declining from 4,375 to 4,300 units. If net income was originally $40,000, how much will net income increase or decrease
Answer:
it increases by 6,500
Explanation:
Diminishing marginal product suggests that Group of answer choices marginal cost is upward sloping. Adding additional workers will lower total cost. The firm is at full capacity. Additional units of output become less costly as more output is produced.
Answer:
The marginal cost is upward sloping.
Explanation:
This is because the marginal product of labor decreases as additional labor is employed which increases the marginal cost.
One significant component of _____ can be the investment a seller makes in equipment or in the hiring of skilled employees to supply the product or service to the buyer.
Answer:
Transaction cost
Explanation:
Transaction cost is defined as costs that a person bears in the process of buying or selling of a product.
For example the commission that is paid to a broker for completing a transaction, cost of transportation that is spent when completing an exchange, and time for completing the purchase are all examples of transaction cost.
In the given instance transaction cost is exemplified by the investment a seller makes in equipment or in the hiring of skilled employees to supply the product or service to the buyer.
In the Shaping Department of Vaughn Company the unit materials cost is $6.00 and the unit conversion cost is $2.00. The department transferred out 40300 units and had 4800 units in ending work in process 25% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is
Answer: $31200
Explanation:
Based on the information given in the question, the total cost to be assigned to the ending work in process will be:
Material cost = 4800 × $6 = $28800
Conversion cost = 4800 × 25% × $2 = $2400
Therefore, the total cost to be assigned to the ending work in process will be:
= $28800 + $2400
= $31200
Having term limits on Boards of Directors for companies forces firms to rotate leadership to get new ideas. It also creates this unintended consequence:
The available options are the following:
-Board members serve on multiple boards
-People with knowledge of the firm's history are replaced with those who may not know as much information
-Less frequent board meetings
-Better decisions about important issues
Answer:
-People with knowledge of the firm's history are replaced with those who may not know as much information
Explanation:
Considering the available options, the option that appears negative and related to the point being discussed is
"People with knowledge of the firm's history are replaced with those who may not know as much information."
It is straightforward, as changing the board of directors will at some point lead to a time where the new member in the board of directors will just be a competent worker but has no history with the company.
At which criteria level is the most important to observe a significant change in order to conclude that a training program is effective
Answer:
Level 3 evaluation
Explanation:
In simple words, Level 3 assesses the extent to which individuals' attitudes improve as a consequence of the education - in other words, if the program's information and abilities are used on the job. The learner's conduct is measured both before and after the activity at Stage 3.
Thus, from the above we can conclude that the correct answer is level 3 evaluation.
Accounts receivable, equipment, the building itself, and the land on which the building stands are examples of:
Answer: Assets
Explanation:
Assets are something that a business owns that is able to bring in money or is a store of value.
All the above mentioned items are considered assets as they fit this description.
Accounts receivable is a current asset which means it has a duration of a period or less.
Equipment, building and land are all fixed assets as they have a duration of more than one period.
A mortgage with low initial payments that increase over time without ever leveling off is a graduated payment mortgage. growing-equity mortgage. second mortgage. shared-appreciation mortgage. equity line of credit
Answer:
growing-equity mortgage
Explanation:
When a person obtains a growing equity mortgage, they have to pay a higher monthly payment every month. These increases must be included in the mortgage contract and they are beneficial if the borrower's income is expected to increase in the future. The interest rate remains the same, it doesn't change.
