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A decrease in input costs to firms in a market will result in?
a decrease in equilibrium price and an increase in equilibrium quantity
What oil tycoon used horizontal integration to decrease costs and increase profits?
John D. Rockefeller
Why supply curve increase or decrease?
The supply curve can shift due to changes in production costs, technology, or the number of suppliers. An increase in production costs (e.g., higher wages or raw material prices) typically causes the supply curve to decrease (shift left), indicating a reduced quantity supplied at each price level. Conversely, improvements in technology or an increase in the number of suppliers can lead to a decrease in production costs, causing the supply curve to increase (shift right), indicating a greater quantity supplied at each price level.
Why does globalization lead to environmental damage?
Environmental-protection regulations increase compliance costs and decrease economic competitiveness.
What are the different economic and non economic costs of unemployment?
Economic costs is the decrease in goods and services that occurs as result of unemployment but non-economic cost is the increase in goods and services that occur as result of unemployment.
In computing the cost of merchandise sold does freight increase or decrease the cost?
Freight costs are added to the cost of the merchandise. The total is typically referred to as the "landed" cost of the product.
Freight costs incurred by a seller on merchandise sold to customers will cause an increase in what?
selling price
A decrease in input costs to firms in a market will result in?
a decrease in equilibrium price and an increase in equilibrium quantity
Do variable costs per unit decrease when sales increase?
Variable cost per unit remains same per unit and has no impact on increase or decrease of sales.
Is transportation a fixed or variable cost?
Transportation can be both a fixed and variable cost, depending on the context. Fixed transportation costs include expenses such as leasing vehicles or maintaining a fleet, which do not change with the volume of goods transported. In contrast, variable transportation costs fluctuate with the level of production or sales, such as fuel, maintenance, and shipping fees, which increase or decrease based on the amount of goods moved. Overall, it is important to analyze the specific transportation expenses to determine their classification.
What happens to the contribution ratio when the components change?
The contribution ratio is the relationship between total sales revenue and total variable costs. If the components change, such as an increase in sales revenue or a decrease in variable costs, the contribution ratio will increase. Conversely, if sales revenue decreases or variable costs increase, the contribution ratio will decrease.
What are the Types of Returns to scale?
Economies of scale (costs decrease), diseconomies of scale (costs increase), constant returns to scale (costs stay the same)
How can manager decrease variable costs while increaseing fixed cost?
This is generally done in areas such as manufacturing where processes can be more automated. By investing in machines and facilities, the fixed costs will increase, but variable labor costs will decrease.
What causes the break even point to increase or decrease?
The break-even point increases when fixed costs increase or selling price decreases. It decreases when fixed costs decrease or selling price increases. Changes in variable costs or sales volume can also impact the break-even point.
Which term indicates that merchandise is free of transportation charges to the buyer?
"Free on Board (FOB) destination" indicates that merchandise is free of transportation charges to the buyer. This means that the seller is responsible for the shipping costs and risk of loss until the goods reach the buyer's specified location.
What are the important differences between fixed cost and variable costs?
Fixed costs are costs that do not change in total as the number of units increase or decrease. Examples include rent and utilities expense, manager salaries, etc. However, since the total cost does not change, the individual unit cost does change as units increase or decrease. Variable costs are costs that change in total as the number of units increase or decrease. An example might be direct labor, which increases based on number of hours work. However, total unit cost does not change.
What is objectives of the firm?
Succeed 1. Increase sales 2. Decrease costs 3. Operate efficiently 4. Increase profit
