Home / Questions / A firm has a fixed cost of $20,000 in its first year of operation When the firm produces 1...
A firm has a fixed cost of $20,000 in its first year of operation. When the firm produces 1,000 units of output, its total costs are $80,000. When it produces 1,100 units of output, its variable costs are $70,000. If the marginal cost of each of the 100 additional units of output is the same then the marginal cost of producing the 1,050th unit of output is less than $90.
True
false
The average variable cost curve and average total cost curve will eventually intersect as output increases because average fixed cost eventually becomes negative.
True
False
If marginal cost is rising, then it is likely that marginal product is decreasing because the additional input costs are spread over fewer units of output.
True
False
Feb 06 2020 View more View Less
Olympic Village Enterprises lost its entire inventory in a hurricane that occurred on July 31, 2014. Over the past five years, gross profit has averaged 30% of net sales....
May 06 2020Benefits and Collective Bargainingexamine two reasons why employees join labor unions. Examine two reasons why managers prefer that unions do not represent their employee...
Jul 31 2020LIFO is said to favor the income statement; whereas, FIFO is said to favor the balance sheet. Carefully explain why this is the case
Jul 19 2021Draw examples of the following:(a) A meso compound with the formula C8H18(b) A meso compound with the formula C9H20(c) A compound with two chirality centers, one R and the other
Jun 16 2021Finding an Equation of a Tangent Line In Exercises 55-62, find an equation of the tangent line to the graph of the function at the given point
Aug 17 2021On November 1, 2013, Tim's Toys borrows $27,900,000 at 10% to finance the holiday sales season. The note is for a six-month term and both principal and interest are p...
Mar 25 2020If the cost of funds is 5 percent for the bank, what is the present value of the loan prior to the rescheduling? What is the present value of the rescheduled loan to the...
Nov 25 2019Jungle, Inc., has a target debt-equity ratio of 1.05. Its WACC is 9.4 percent, and the tax rate is 35 percent.If Jungle’s cost of equity is 14 percent, what is its pre-ta...
May 05 2021Anne is a reporter for Daily Business Journal, a print publication consulted by investors and other businesspersons. She often uses the Internet to perform research for t...
Aug 18 2021The primary difference between a static budget and a flexible budget is that the static budget contains only fixed costs, while the flexible budget contains only variable...
May 21 2021