BUSINESS HIGH SCHOOL

The government imposes a $1,000 per year license fee on all pizza restaurants. Which cost curves shift as a result? Select one: a. average total cost and average fixed cost. b. average total cost and marginal cost. c. average variable cost and marginal cost. d. average variable cost and average fixed cost.

Answers

Answer 1
Answer:

Answer:

correct option is a. average total cost and average fixed cost.

Explanation:

given data

license fee  = $1,000 per year

solution

we know that cost curves shift will be express as when the increase in the price of factor of production increase cost and shift cost curves upward

so cost curves shift by the average total cost and the average fixed cost

so here correct option is a. average total cost and average fixed cost.
Answer 2
Answer:

Final answer:

The government's $1,000 license fee increases both the average total cost and average fixed cost, but does not affect marginal cost. The average fixed cost curve shows the effect of spreading the overhead, meaning as more output is produced, the fixed cost per unit decreases.

Explanation:

The government imposes a $1,000 per year license fee on all pizza restaurants. This fee is a fixed cost, which means it doesn't change with the level of output produced. It will affect the restaurant's total costs, but not the costs associated with producing one more unit, or the marginal cost. Therefore, the cost curves that will shift are the average total cost and the average fixed cost.

A common name for fixed cost is "overhead." If you divide the fixed cost by the quantity of output produced, you get the average fixed cost. With a supposed fixed cost of $1,000, the average fixed cost curve would start from the intercept at $1,000 on the vertical axis (when output is zero), and it would decrease as the quantity of output increases, which represents the "spreading the overhead." This means that as you produce more, the fixed cost is spread over more units, and therefore the cost per unit decreases.

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An electronics company has developed a new hand-held device. The company predicts that the start-up cost to manufacture the new product will be $125,000, and the cost to make one device will be $6.50. A. If the company plans on selling the device at a wholesale price of $9, write and solve an inequality to determine how many must be sold for the company to make a profit. Show your work. B. The cost of making one device is 10% more than the company predicted. What is the new cost of making one device? How many devices must it now sell at the same wholesale price to make a profit? C. Suppose the company wants to start making a profit after selling the same number of devices you found in part A. What should the new wholesale price be? Explain how you found this price.

Answers

Answer:

A) to calculate the break even point we can use the following:

break even point = fixed costs / contribution margin

break even point = 125,000 / (9 - 6.5) = 125,000 / 2.5 = 50,000 units

The company must sell over 50,000 units to make a profit

B) if the unit production costs increase 10%, the new unit cost will be $7.15, and the new break even point will be: 125,000 / (9 - 7.15) = 125,000 / 1.85 = 67,567.6 which we round up to 67,568 units.

Now the company must sell at least 67,568 units to make a profit

C) If the company wants to increase its product price to a level where the break even point is 50,000 units, then the new price should be $9.65.

The contribution margin must be $2.5, so if the production costs are $7.15, we just add $2.5 to get $9.65 per unit.

Before your first day of work, it is a good idea to _____.a. Ask your boss for a vacation
b. Maintain a rotten mood
c. Drive to work to see how long it takes
d. Complain about your starting salary

Answers

Before your first day of work, it is a good idea to : C. Drive to work to see how long it takes

One of the most important thing to do in your first day of work is to display a good first impression, and coming late to your work at the first day will destroy your boss' first impression about you, in order to avoid that, you should check out the amount of time needed to get to work

Answer:

the answer is c.

Explanation:

i hope this helps :).

Ronnie operates a lawn-care service. On each day, the cost of mowing the first lawn is $15, the cost of mowing the second lawn is $25, and the cost of mowing the third lawn is $40. His producer surplus on the first three lawns of the day is $100. If Ronnie charges all customers the same price for lawn mowing, that price is

Answers

Answer:

$60

Explanation:

The computation of price is shown below:-

Producer Surplus = Price paid by consumers - Production cost

$100 = Price - ($15 + $25 + $40)

$100 = Price - $80

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= $180 ÷ 3

= $60

Therefore, for computing the price per consumer we simply divide first three lawn by price for all.

The wage theory that states that differences in wage rates are determined by collective bargaining is thea. traditional theory of wage determination.
b. theory of equilibrium wage rate.
c. theory of negotiated wages.
d. signaling theory.

Answers

The correct answer for the question that is shown above is this one: "c. theory of negotiated wages." The wage theory that states that differences in wage rates are determined by collective bargaining is the theory of negotiated wages. Collective bargaining is a process of negotiations between employers and the representatives of a unit of employees aimed at reaching agreements that regulate working conditions. 

Items of value owned by a business are known as which of the following?

Answers

Answer:

Explanation:

Assets

Classify the following goods according to whether or not they would be included in calculating the GDP for the United States. All goods should be placed. If a country is not specified, you can assume the action is performed in the United States.1. Honda's assembly and sale of cars in the U.S. 2. Sale of wheat to Mrs. Baird's Bakery 3. Resale of used textbooks to college students 4. GM's assembly and sale of cars in Mexico 5. Ocean Spray purchases plastic to make bottles 6. Old Navy purchases mannequins to display clothes

Answers

Answer:

we will classify them in the explanation below.

Explanation:

To be included in calculating US GDP                                    

  • Honda's assembly and sale of cars in the US: this is because the cars were produced domestically in the US
  • Old Navy purchases mannequins to display clothes: this is because the mannequins were already finished products when they were bought.

Not to be included in calculating US GDP

  • Sale of wheat to Mrs. Baird's Bakery: this is because the wheat was not exchanged at the market, but rather will be used in the bakery.
  • Resale of used textbooks to college students: this is because only newly produced goods are included in GDP calculation.
  • GM's assembly and sale of cars Mexico: this will be added to Mexico's GDP and America's GNP.
  • Ocean Spray purchase of plastic to make bottles: this is because the value of the plastic will be reflected in the price paid by the consumer after the bottle has been made.
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