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2 years ago

The average total cost curve and the marginal cost curve are related in that:

Business

1 answer:

Serga [27]2 years ago

3 0

Answer:

C. the MC curve passes through the minimum point of the ATC curve.

Explanation:

Marginal cost is the cost of producing additional unit, it is upward sloping as generally the cost that is additional as it tends to increase with increase in output.

Whereas Average Total Cost is a U shaped curve, it basically starts from a high point and then tends to decrease as the increase in number of units with constant fixed cost tends to decrease the average, but ultimately after it reaches its lowest point it tends to increase because now to produce units, there is extra cost required.

The Marginal Cost Curve touches the Average Total Cost curve at its lowest.

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A firm has determined its cost of each source of capital and its optimal capital structure which is comprised of the following s

barxatty [35]

Answer:

10.25%

Explanation:

Data provided in the question:

Long-term debt = 45%, after-tax cost = 7%

Preferred stock = 15%, after-tax cost = 10%

Common stock equity = 40%, after-tax cost = 14%

Now,

The weighted average cost of capital for this firm will be calculated as:

= Long term debt × after-tax cost + Preferred stock × after-tax cost + Common stock equity × after-tax cost

= 0.45 × 0.07 + 0.15 × 0.10 + 0.40 × 0.14

= 0.0315 + 0.015 + 0.056

= 0.1025

= 0.1025 × 100%

= 10.25%

5 0

2 years ago

Type the correct answer in the box. Spell all words correctly.

Alika [10]

Answer:

its to easy

Explanation:

i know it

7 0

2 years ago

When perfectly competitive firm X sells three units of product Z, its marginal revenue is $4.67. When it sells one hundred units

Sedaia [141]

Answer:

Explanation:

In a perfectly competitive market, marginal revenue always is equal to price. Also, the price is not determined by the firms, it is given by the market because producers doesn´t have any power of decision in this matter.

Due to that, the price is constant, independent the quantity sold.

8 0

2 years ago

The amount of uncollectible accounts at the end of the year is estimated to be $35,000, using the aging of accounts receivable m

vladimir2022 [97]

Answer:

$35,000

Explanation:

As the Allowance of Doubtful Accounts account already has the balance of $12,000, and we need $35,000 at the end of the year. We know that Allowance of Doubtful Accounts account account has credit nature so it needed $23,000 ($35,000 - $12,000) to be adjusted at the end of the year to make the adjusted balance equals to $35,000. So, the adjusted account balance will be $35,000.

6 0

2 years ago

Bill Dukes has $100,000 invested in a 2-stock portfolio. $32,500 is invested in Stock X and the remainder is invested in Stock Y

pshichka [43]

Answer:

0.98

Explanation:

Computation for Bill Duke portfolio's beta

First step is to find the Investment in Y which is:

Investment in Y=100,000-35,000

=$65,000

Second step is to calculate for the Portfolio beta using this formula

Portfolio beta=Respective beta*Respective Investment weight

Portfolio beta =(35,000/100,000*1.5)+(65,000/100,000*0.7)

Portfolio beta=(0.35*1.5) +(0.65*0.7)

Portfolio beta =0.525 +0.455

Portfolio beta=0.98

Therefore the Portfolio Beta will be 0.98

7 0

2 years ago