Business, 11.02.2021 21:30 ashtonrieper2721
Consider a firm with a marginal cost that initially decreases, but after reaching a minimum then increases with output (that is, the more output is produced, the higher the marginal cost). Suppose the firm is producing in the short run, which implies that there are some fixed costs. Which of the following statements is correct?
a. To produce at the minimum average total cost, the firm must produce more output than it would need to produce at the minimum average variable cost.
b. To produce at the minimum average variable cost, the firm must produce more output than it would need to produce at the minimum average total cost.
c. The level of output that minimizes the average variable cost is also the level of output that minimizes the average total cost.
d. There is no level of output that minimizes the average total cost.
Answers: 2
Business, 21.06.2019 21:50, sihamabdalla591
Franklin painting company is considering whether to purchase a new spray paint machine that costs $4,800. the machine is expected to save labor, increasing net income by $720 per year. the effective life of the machine is 15 years according to the manufacturer’s estimate. required determine the unadjusted rate of return based on the average cost of the investment.
Answers: 2
Business, 22.06.2019 05:20, alexandroperez13
Carmen co. can further process product j to produce product d. product j is currently selling for $20 per pound and costs $15.75 per pound to produce. product d would sell for $38 per pound and would require an additional cost of $8.55 per pound to produce. what is the differential revenue of producing product d?
Answers: 2
Business, 22.06.2019 16:00, hany90
Arnold rossiter is a 40-year-old employee of the barrington company who will retire at age 60 and expects to live to age 75. the firm has promised a retirement income of $20,000 at the end of each year following retirement until death. the firm's pension fund is expected to earn 7 percent annually on its assets and the firm uses 7% to discount pension benefits. what is barrington's annual pension contribution to the nearest dollar for mr. rossiter? (assume certainty and end-of-year cash flows.)
Answers: 2
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