BUSINESS COLLEGE

Which of the following illustrates economies of scale , diseconomies of scale , and constant returns to scale ?Liza's average total cost changes from $4.50 to $2.20 when she increases salad production from 7 to 9 an hour. Sam's average total cost changes from $1.30 to $2.80 when he increases smoothie production from 5 to 8 gallons an hour. Tina's average total cost remains at $3 when she increases pizza production from 12 to 13 an hour.

a. Sam faces economies of scale; Liza faces diseconomies of scale; Tina faces constant returns to scale.
b. Sam faces economies of scale; Tina faces diseconomies of scale; Liza faces constant returns to scale.
c. Tina faces economies of scale; Sam faces diseconomies of scale; Liza faces constant returns to scale.
d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scal

Answers

Answer 1
Answer:

Answer: d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale

Explanation:

Economies of scale occurs when the increase in production by companies brings about a reduction in cost. Diseconomies of scale is when a rise in production leads to an increase in cost as well. For a constant return to scale, the cost remains the same.

Therefore, the answer will be option D "Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale".

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What is true with respect to the demand of a monopolist?

Answers

Answer:

Average revenue is greater than marginal cost when the monopolist is maximizing total profits or minimizes losses. Marginal revenue decreases as average revenue decreases.

Explanation:

A monopolist controls all of the markets for a particular good or service. A monopolist does not need to improve their product much because customers have no other alternatives.

In the case of pure monopoly, no close substitutes for the product exist and there is one seller.

Average revenue is greater than marginal cost when the monopolist is maximizing total profits or minimizes losses. Marginal revenue decreases as average revenue decreases.

Inventing a new soft drink - what would be the input - the conversion, and the output?

Answers

 

The invention of a new soft drink, the input, conversion, and output would be:

  • Input: Knowledge, raw material, and capital, which are required to make a product.
  • Conversion: It is the process of transforming input into the output.
  • Output: It is the result of the product.

Further explanation:

Inventing a new soft drink:

  • Soft drinks are popular beverages made for consumption purposes. Soft drinks are made from the dry and the fresh ingredients and mixing it with the water.
  • Inventing a new product, one should make the product unique from the existing product, new features or flavors should be added to them. The producer should try to make that product which is in demand. A unique product should be made so as to compete in the market.
  • Marketing and promotion should be kept in mind while selling the product.
  • Feedback should be taken from the consumers after selling.

Thus, the input for inventing a new soft drink would be the raw material, knowledge, and capital required to make the product that is a soft drink, the conversion is the process of making input into output, and output is the result of the product.

Learn more:

1. Gross national product:

brainly.com/question/11084585

2. Demand forthe product:

brainly.com/question/2488917

3. Productivity:

brainly.com/question/5045672

Answer details:

Grade: Middle School

Subject: Business

Chapter: Production

Keywords:Inventing a new soft drink, what would be the input, the conversion, and the output, feedback, market, raw material, marketing, promotion, knowledge, dry, fresh, after selling, a unique product should be made so as to compete, the market.

Inventing a new soft drink  -what would be the input - the conversion, and the output?

The input would be the taste/flavor of the new soft drink. When inventing something new, you need to figure out something that will give it a distinct difference over competition. After you have established what you want it to taste like, you need to make the receipe and try it to make sure you like it and can replicated it for consumers. Once the drink has been made for test tasting, having people try the drink will establish whether or not they want to purchase the drink. Once the entire drink has been through the processes of test tasting, if there is good feedback it's time to put the product on the the self as the output.

Ribb Corporation produces and sells a single product. Data concerning that product appear below: Per Unit Percent of Sales Selling Price $190 100% Variable Expenses 57 30% Contribution Margin $133 70% Fixed expenses are $913,000 per month. The company is currently selling 9,000 units per month. Management is considering using a new component that would increase the unit variable cost by $6. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change?

Answers

Answer:

Decrease in operating income     $3,200  

Explanation:

The computation is shown below:

Particulars  Old method  New method

Sales                 $1,710,000       $1,786,000

                      (9,000 units × $190)    (9,400 units × $190)

Less:

Variable expenses  $513,000           $592,200

                       (9,000 units × $57)    (9,400 units × $63)

Contribution margin $1,197,000       $1,193,800

Less:

Fixed expenses   ($913,000)         ($913,000)

operating income   $284,000          $280,800

Decrease in income     $3,200  

We simply take an difference of operating income under both methods that reflects the decrease in operating income

Andrews Company manufactures a line of office chairs. Each chair takes $14 of direct materials and uses 1.9 direct labor hours at $16 per direct labor hour. The variable overhead rate is $1.20 per direct labor hour, and the fixed overhead rate is $1.60 per direct labor hour. Andrews expects to have 675 chairs in ending inventory. There is no beginning inventory of office chairs. unit product cost. budgeted ending inventory

Answers

Answer:

Chair unit cost:                 $    49.72

Total cost for 675 chairs: $  33,561

Explanation:

Direct Materials:                                                                   $  14.00

Direct Labor:   1.9 hours x $16 labor cost:                           $ 30.40

Overhead:

1.9 labor hours x ($ 1.6 variable rate + $ 1.20 fixed rate) = $  5.32  

                                          Total unit cost:                             $ 49.72

Cost to produce 675 chairs:

675 charis x $ 49.72 per chair = $ 33,561‬

Assume that in January 2017, the average house price in a particular area was $308,700. In January 2000, the average price was $198,300. What was the annual increase in selling price?

Answers

Answer:

2.64%

Explanation:

It requires application of basic time value of money function

n = 17

FV = $308,700

PV = $198,300

FV = PV * (1 + r)n  

$308,700 = $198,300 * (1 + r)^17

$308,700 / $198,300 = ($198,300 * (1 + r)^17) / $198,300  

1.556732 = (1 + r)^17

Taking 17th root of equation

1.0264 = 1 + r

r = 2.64%

It costs Vaughn Company $26 per unit ($18 variable and $8 fixed) to produce its product, which normally sells for $38 per unit. A foreign wholesaler offers to purchase 4800 units at $21 each. Vaughn would incur special shipping costs of $2 per unit if the order were accepted. Vaughn has sufficient unused capacity to produce the 4800 units. Required:
(a) If the special order is accepted, what will be the effect on net income?

Answers

Answer:

Effect on income= $4,800 increase

Explanation:

Giving the following information:

Unitary variable cost= $18

A foreign wholesaler offers to purchase 4800 units at $21 each. Vaughn would incur special shipping costs of $2 per unit if the order were accepted.

Because it is a special order and there is unused capacity, we will not take into account the fixed costs.

Effect on income= 4,800*21 - 4,800*(18 + 2)= $4,800 increase
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