Are the costs of utilities always fixed, always variable, or can they be both? Briefly explain
What will be an ideal response?
For many firms, the cost of utilities can be a mixture of fixed and variable costs. For example, a store may keep its lights on and its outdoor signs lighted day and night. The cost of the electricity to keep these lights on would, therefore, be a fixed cost because the cost does not vary with the quantity of the product sold. On the other hand, if, for example, the store is a laundromat, then the more people who use the washers and dryers, the more electricity it uses. So, that part of its electric bill is a variable cost.
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Which one of the following statements is NOT accurate in relation to shareholders and their conduct in a? corporation?
A. Because shareholders elect the? directors, in theory the shareholders are the final governing body of the corporation. B. Shareholder activism has become a progressively noticeable issue in corporate governance. C. Because shareholders elect the? directors, institutional stock holders long dash—such as pension? funds, insurance? companies, mutual? funds, religious? organizations, and college endowment funds long dash—have significant impact on the governance of corporations. D. Even though most do not have any direct participation in firm? management, shareholders play a significant role in corporate governance. E. Activist shareholders are becoming better prepared and more classy.
If ________, a firm would either operate or shut down in the short run and contract in the long run.
A. AVC > ATC B. TR > TC C. AFC > AVC D. TC > TR
Which of the following is not a common characteristic of oligopolistic firms?
a. high barriers to entry b. mutual interdependence c. a large number of sellers d. nonprice competition
Table 1.3 shows the hypothetical trade-off between different combinations of brushes and combs that might be produced in a year with the limited capacity for Country X, ceteris paribus.Table 1.3Production Possibilities for Brushes and CombsCombinationNumber of combsOpportunity Cost(Foregone brushes)Number of brushesOpportunity Cost (Foregone combs)J4 0NAK3 10 L2 17 M1 21 N0NA23 On the basis Table 1.3, what is gained from producing at point L rather than point K?
A. 10 combs. B. 7 brushes. C. 1 brush. D. 17 combs.