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What will happen if a product becomes more popular and there is a fall in the cost of its production?
If a product increases in poularity, and decreases its production cost, I would expect that the company selling this product is going to enjoy increased profits.
What happens when the cost of capital increases?
The market value of a firm's equity increases, the cost of capital decreases.
What happens to the quantity demanded for credit if the cost of borrowing increases or decreases?
As the cost of credit increases, the quantity demand decreases. in contrast, if the cost of borrowing drops, the quantity of credit demand rises.
Fixed cost per unit increases when?
when number of activity or units decreases
What is the cost that increases with each additional unit produced?
Marginal cost of production
What is the word for an idea that has production increases cost per item decreases?
cartel
As production of an item increases what impact does that typically have on the unit cost?
Unit cost decreases
How does subsidy affect supply?
It decreases cost of production and increases supply.
What will happen if a product becomes more popular and there is a fall in the cost of its production?
If a product increases in poularity, and decreases its production cost, I would expect that the company selling this product is going to enjoy increased profits.
If the production of fruit increases from 21 pounds to 26 pounds and decreases production of fish from 15 pounds to 13 pounds what is the opportunity cost of a pound of fruit?
A positive 3
What happens when the cost of capital increases?
The market value of a firm's equity increases, the cost of capital decreases.
What happens to the quantity demanded for credit if the cost of borrowing increases or decreases?
As the cost of credit increases, the quantity demand decreases. in contrast, if the cost of borrowing drops, the quantity of credit demand rises.
Fixed cost per unit increases when?
when number of activity or units decreases
What would the effect be if lumber production decreased?
When supply decreases but demand does not, cost increases. That would probably be most noticeable in the new home construction industry, the largest consumer of lumber.
What is the cost that increases with each additional unit produced?
Marginal cost of production
Does mass production increase or decrease the cost of goods?
Mass production typically decreases the cost of goods because it allows for economies of scale to be realized. This means that as production volumes increase, the average cost per unit decreases due to spreading fixed costs over a greater number of units.
What are the effects of stock losses on a business?
it increases the cost of goods sold and it decreases the gross profit.
