The marginal cost curve: intersects the avc and ac at their respective minimum points. is always downward-sloping. represents how fixed costs change when an additional unit of output is produced. only slopes upwards when marginal productivity is rising.

Answers

Answer 1

The marginal cost curve represents the cost of producing an additional unit of output. It is always downward-sloping because as production increases, there are economies of scale that reduce the cost of producing each additional unit.

The marginal cost curve intersects the average variable cost (AVC) and average total cost (AC) at their respective minimum points. This is because the AVC and AC curves are U-shaped due to the fixed costs that are spread over a larger number of units as production increases.

The marginal cost curve only slopes upwards when the marginal productivity of labor is rising. This is because as more labor is added to the production process, there is a point where the additional output produced by each additional worker decreases. At this point, the marginal cost curve begins to slope upwards because the cost of producing each additional unit of output is increasing.

In summary, the marginal cost curve is a crucial concept in economics because it helps businesses determine the optimal level of production. It represents the cost of producing each additional unit of output and is always downward-sloping due to economies of scale. The intersection of the marginal cost curve with the AVC and AC curves at their respective minimum points indicates the level of production that minimizes costs.

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Related Questions

The petty cash fund has a current balance of $ 350​, which is the established fund balance. Based on activity in the​ fund, it is determined that the balance needs to be changed to $ 450. Which journal entry is needed to make this​ change?

Answers

Answer:

Debit the petty cash account and credit the cash account with $100

Explanation:

Businesses sets aside small amount of money(cash) to cover recurring expenses such as postage stamp, delivery charges, fares etc. This is usually done through the setting up of petty cash fund. The purpose of petty cash fund is to make provision for re-imbursement of minor expenses where there are no alternatives.

With regards to the above, the journal entries would be Debit petty cash account and Credit cash account with $100.

Answer:

Debit Petty Cash, credit cash for $100

Explanation:

To increase the petty cash fund, you must increase its normal balance which is a debit.

you are actually cashing a check for $100 (hence, credit to cash account) and actually putting more cash into your petty cash account.

What Came first, the color orange or the fruit?

Answers

The citrus definitely got named first. The earliest recorded use of orange the fruit in English is from the 1300s and came to us from the Old French orenge, adapted from the Arabic nāranj, from the Persian nārang, from the Sanskrit nāranga (“orange tree”)

Answer:

the fruit

Explanation:

The citrus definitely got named first. The earliest recorded use of orange the fruit in English is from the 1300s

An application for health insurance was submitted on November 1 with the initial premium and a conditional receipt was provided. Due to an existing medical condition, the underwriter requested an Attending Physician Statement, medical exam, and MIB report. After reviewing all sources of insurability, the insurer issued the policy as substandard with a surcharge. The policy was delivered by the producer on December 1 after explaining the coverage and surcharge, obtaining the statement of good health, and collecting the premium. Coverage became effective as of the date the:

Answers

Answer:

B.  Agent explained the policy coverage, surcharge, and collected the additional premium

Explanation:

The options were not included in the question:

A.  Medical exam was completed and underwriting reports were received B.  Agent explained the policy coverage, surcharge, and collected the additional premium C.  Policy was mailed to the agent for legal delivery D.  Application and initial premium were submitted, and conditional receipt was provided

Basically the coverage will become effective after the additional premium is collected and all the changes to the policy have been explained to the customer. Insurance policies generally only become effective after the whole premium has been paid. There is no such thing as insurance credit. Imagine if you could purchase insurance on credit, no one would pay the policies if nothing bad happened to them . The whole concept of insurance is about it being prepaid.

why is south africa regarded as a developing country​

Answers

Answer:

This is due to the fact that South Africa is currently in a state of poverty and has very high unemployment rates, meaning there are a lot of poor people on the streets and it is uneasy/many do not have jobs either.

Explanation:

What levels of risk does investing in the stock generally carry
medium
medium, high,
low, high
or low?

Answers

Low, high  levels of risk does investing in the stock generally carry. Over the long term, stocks have the highest potential for growth for investors. Investors who have chosen to hold onto stocks for an extended length of time—say let's 15 years.

Typically been rewarded with robust, profitable returns. Utilize your associated banking account to open a risk and trading account. Access that trading account. Choose the shares you want to purchase or sell. Make sure you have the necessary investing funds in your account to purchase the shares stocks. taking dividends in— Many stocks distribute dividends, which are based on the company's earnings per share.

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in production machining, different types of cuts are are usually made to create the final geometry of a part. often times, initial cuts are made to remove large amounts of material from the starting workpart. this initial set of cuts is commonly referred to as . subsequent cuts are then made to achieve final dimensions, tolerances and finish, to complete the geometry. this second stage of cutting is commonly referred to as .

Answers

In production machining, the final geometry of a part is achieved through a series of cuts. The initial cuts are made to remove large amounts of material from the starting workpart, and this set of cuts is commonly referred to as rough cuts. Subsequent cuts are then made to achieve the final dimensions, tolerances, and finish required for the part, completing the geometry. This second stage of cutting is commonly referred to as finish cuts. The precise execution of both rough and finish cuts is critical to achieving the desired geometry of the part.

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Suncoast Healthcare is planning to acquire a new x ray machine that costs $200,000. The business can either lease the machine using an operating lease or buy it using a loan from a local bank. Suncoast's balance sheet prior to acquiring the machine is a follows:
Current assets: $100,000 --- debt : $400,000
net fixed assets: $900,00 ---- equity: $ 600,000
total assets : $ 1,000,000 --- total claims: $1,000,000
a. what is Suncoast's current debt ratio?
b. what would the new debt ratio be if the machine were leased? if it iss purchased?
c. is the financial risk of the business different under the two asquistition alternatives?

Answers

Answer:

a. what is Suncoast's current debt ratio?

debt ratio = liabilities / equity = $400,000 / $600,000 = 0.67

b. what would the new debt ratio be if the machine were leased? if it is purchased?

if X-ray machine is leased, debt ratio = $400,000 / $600,000 = 0.67

if X-ray machine is purchased, debt ratio = $600,000 / $600,000 = 1

c. is the financial risk of the business different under the two acquisition alternatives?

yes, because a higher debt ratio means that the company is under a higher financial stress since it has more outstanding loans, which increases the financial risk.

a(n) is a limit on the number of imports that a state will receive from the rest of the world and is considered a . group of answer choices subsidy; tariff barrier subsidy; nontariff barrier import quota type; tariff barrier import quota type; nontariff barrier

Answers

An import quota is a limit on the number of imports that a state will receive from the rest of the world and is considered a nontariff barrier.

A nontariff barrier is any restriction or obstacle to trade that is not a tariff, such as quotas, regulations, or licensing requirements. Import quotas are used to limit the quantity of a specific product that can be imported into a country, and are often used to protect domestic industries from foreign competition.

An import quota is a limit on the number of imports that a state will receive from the rest of the world and is considered a nontariff barrier. Import quotas restrict the quantity of a specific product that can be imported, rather than imposing a tax or tariff on the imported goods.

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Elysha has a monthly gross income of $3,000 and a monthly debt load of $500. How can her debt-to-income ratio be classified?

Answers

Answer:

Her debt to income ratio is classified as favorable

Explanation:

The given information are;

Elysha's gross monthly income = $3,000

The amount she pays as debt each month = $500

Therefore, her debt to in to income ratio, DTI, is given as follows;

DTI = (Amount payed as debt)/(Gross income) = $500/$3,000 ≈ 0.167

We multiply by 100 to express the result as a percentage, to get;

0.167 × 100 = 16.7%

Given that her debt to income ration is less than 35%, her debt to income ratio is classified as favorable and she has a manageable debt.

Answer: Good—between 15 and 20 percent

Explanation: All you have to do is find what the different percents of 3,000 are and see which one is the closest.

17. What is the time value of ABC August 40 put trading for a premium of $8, if ABC stock trades for $37.50 ? a. $0 b. $2.50 c. $5.50 d. $8.00 e. None of the above 18. An investor writes a GHI November 30 put for $4. GHI drops to $20, and the put is exercised. What is the investor's gain or loss ? a. $600 gain b. $600 loss c. $1,400 gain d. $1,400 loss e. None of the above 19. An investor buys 100 XYZ stock for $50 per share, and also buys 1 XYZ December 45 put for $7. XYZ stock declines to $30, and the investor exercises his put and sells the stock. What is the investor's gain or loss? a. Zero, he/she is fully hedged b. $1,200 gain c. $1,200 loss d. $2,000 loss e. $2,000 gain 20. If XYZ stock is trading at $48.25 per share what is the time value of the XYZ December 45 call trading for a premium of $8.50 ? a. Zero b. $8.50 c. $5.25 d. $3.25 e. None of the above

Answers

17. The time value of the ABC August 40 put is $2.50. 18. The investor's gain or loss is $1,400 gain. 19. The investor's gain or loss is $2,000 gain. 20. The time value of the XYZ December 45 call is $3.25.

The time value of an option is the difference between its premium and its intrinsic value. In this case, the premium of the ABC August 40 put is $8, and the intrinsic value is the difference between the strike price and the stock price, which is $40 - $37.50 = $2.50. Therefore, the time value is $8 - $2.50 = $5.50.

When the put is exercised, the investor is obligated to buy the stock at the strike price of $30. Since the put was written for $4, the effective purchase price of the stock is $30 - $4 = $26. If the investor sells the stock at $20, they incur a loss of $6 per share. However, since the investor bought 100 shares, their total loss is $6 * 100 = $600. Since the premium received for writing the put was $4 * 100 = $400, the investor's net gain is $600 - $400 = $1,400.


The investor bought 100 shares of XYZ stock at $50 per share, resulting in an initial investment of $50 * 100 = $5,000. They also bought a put option for $7, resulting in an additional cost of $7 * 100 = $700. When the stock declines to $30, the investor exercises the put and sells the stock at the strike price of $45, resulting in a sale of $45 * 100 = $4,500. The total gain is the difference between the initial investment and the proceeds from the stock sale, which is $5,000 - $4,500 = $500. However, since the investor also received a premium of $700 from the put option, their net gain is $500 + $700 = $2,000.


The time value of an option is the difference between its premium and its intrinsic value. In this case, the premium of the XYZ December 45 call is $8.50, and the intrinsic value is the difference between the stock price and the strike price, which is $48.25 - $45 = $3.25. Therefore, the time value is $8.50 - $3.25 = $5.25.

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(PLEASE HELP) Why might someone choose to own a business rather than simply working as an employee at one? Compare and contrast the advantages and disadvantages that come with owning a business and discuss. Explore why you personally would or would not like to own a business one day.

Answers

Answer: Being a business owner can be extremely rewarding. Having the ... More importantly, you have the freedom to make the decisions that are crucial to your own business success.

Explanation:

:)

caleb, who owns a successful business with two locations and a few international clients, was approached by a large organization about dramatically expanding his company. caleb later told his wife that he is happy with his success, but he wants to stay small because if he decides to add new products, small companies

Answers

Caleb is happy with his success, but he wants to stay small because if he decides to add new products, small companies can move more quickly and start more readily.

What do you mean by products?

The thing that is being sold is called a product. An object or a service can both be considered products. It could appear in the form of anything physical, digital, or cybernetic. Every good has a price, and every good has costs attached to it. The price that can be paid is influenced by the market, the quality, the marketing, and the target market.

What does "product" signify in terms of commerce?

In business, a product is an item or service that you might offer to clients. These products could be material (like clothing or furniture) or immaterial (like computer software). A business is referred to as a product business if product sales account for the majority of its revenue.

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by purchasing training software for $8,000, you can eliminate other training costs of $3,675 each year for the next 10 years. what is the npv of the software? use a discount rate of 12.4%.

Answers

The NPV of the software purchase is $11,228.88. Since the NPV is positive, this investment is considered financially attractive and should be pursued.

To calculate the NPV of the software, we need to determine the present value of the cost savings over the 10-year period, discounted at the given rate of 12.4%.

First, we need to calculate the annual cost savings:

Annual cost savings = $3,675

Next, we need to calculate the present value factor for a 10-year period at a discount rate of 12.4%. Using a present value of an ordinary annuity formula, we get:

PV factor = (1 - (1 / (1 + 0.124)^10)) / 0.124

PV factor = 5.225

Finally, we can calculate the NPV of the software purchase:

NPV = -Initial cost + PV of cost savings

NPV = -$8,000 + ($3,675 x 5.225)

NPV = -$8,000 + $19,228.88

NPV = $11,228.88

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other things being constant, what will be the effect of on consumption when the stock prices increase sharply?
A. decrease
B. Increase
C. No change
D. Can't determine

Answers

The effect of an increase in stock prices on consumption is typically B. increase. Other things being constant, the effect of a sharp increase in stock prices is typically an increase in consumption.

When stock prices increase sharply, it generally leads to an increase in the wealth of individuals who own stocks. This increase in wealth can have a positive impact on consumer confidence and overall economic sentiment, leading to increased consumption.

The wealth effect suggests that as individuals feel wealthier due to the appreciation of their stock holdings, they are more likely to spend and consume more. This can include purchasing goods, services, or making investments. Increased consumption can have a stimulating effect on the economy and contribute to economic growth.

It is important to note that individual reactions to changes in stock prices can vary, and not all individuals may respond in the same way. Additionally, other factors such as personal financial circumstances, economic conditions, and consumer sentiment can also influence consumption behavior. However, as a general trend, an increase in stock prices often leads to an increase in consumption.

Other things being constant, the effect of a sharp increase in stock prices is typically an increase in consumption. However, individual reactions and other factors can influence the actual impact on consumption behavior.

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assume that coffee and tea are substitutes. given a downward sloping demand curve for tea, an increase in the price of tea will cause

Answers

An increase in the price of tea, assuming it is a substitute for coffee, will lead to a decrease in the demand for tea. When coffee and tea are considered substitutes, they serve similar purposes and can be consumed interchangeably.  As a result, if the price of tea increases, consumers are likely to switch to the alternative, which is coffee.

The downward sloping demand curve for tea indicates that as the price of tea decreases, the quantity demanded increases. Conversely, as the price of tea increases, the quantity demanded decreases.

When the price of tea rises, consumers may find coffee to be a more attractive option due to its relatively lower price. They may choose to purchase more coffee and reduce their consumption of tea. This behavior leads to a decrease in the demand for tea, as consumers are now substituting it with coffee. The extent of the decrease in demand will depend on the price elasticity of demand for tea and the availability of close substitutes like coffee. Overall, an increase in the price of tea will cause a decrease in its demand as consumers shift to the substitute, coffee.

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A performance management system typically does NOT include: Select one: a. Continuous coaching. b. Developmental planning. c. Organizational-profit forecasting. d. Goal setting.

Answers

A performance management system typically does not include C. Organizational-profit forecasting.

What is performance management?

It should be noted that performance management simply means the monitoring and evaluation of the work of workers.

In this case, a performance management system typically does not include an organizational-profit forecasting.

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How is the restaurant manager’s experience different from the customer’s experience?

Answers

Answer:

The restaurant Manager has in-depth knowledge of their business, workers, and income. While a customer might know a workers name a restaurant Manager knows their past record, their education level, and connections.

A manager also might deal with the money, meaning counting bills, change, while a customer simply pays.

Explanation:

Sorry if the question is looking for more specifics.

If you show defensiveness, people are more likely to _____. a. confront you about your problems b. critique your performance c. close their communication d. check your goals

Answers

Answer:

C- close there communication

Explanation:

Which of the following is not a step that can help you establish and maintain a good credit history?

a. Open a bank account.

b. Purchase a cell phone contract and pay it on time and in full every month.

c. Make car payments and car insurance on time.

d. Open many credit card accounts.

e. All of the above steps help establish good credit history.​

Answers

Answer:

b. Purchase a cell phone contract and pay it on time and in full every month.

Explanation:

have a wonderful day!! :)

9.21 The ABC Corporation placed an asset in service three years ago. The company uses the MACRS method (seven-year life) for tax purposes and the straight-line method (seven-year useful life) for fina

Answers

The difference in the current book value obtained using both methods is $27,143.

The cost of the asset is $100,000 and the salvage value used for depreciating purposes is $20,000. The useful life of the asset is 7 years, therefore the annual depreciation is $100,000 - $20,000 / 7 = $12,857.14.

Depreciation for the first three years (using straight-line method) = 3 x $12,857.14 = $38,571.42.

Book value = Cost - Accumulated depreciation

Book value using straight-line method = $100,000 - $38,571.42 = $61,428.58

Depreciation for the first three years (using MACRS) = (0.1429 + 0.2449 + 0.1749) x $80,000 = $34,285.71.

Book value using MACRS method = $100,000 - $34,285.71 = $65,714.29

The difference in the current book value obtained using both methods = $65,714.29 - $61,428.58 = $4,285.71.

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Complete question is:

The ABC Corporation placed an asset in service three years ago. The company uses the MACRS method (seven-year life) for tax purposes and the straight-line method (seven-year useful life) for financial reporting purposes. The cost of the asset is $100,000, and the salvage value used for depreciating purposes is $20,000. What is the difference in the current book value obtained using both methods?

what are some pros and cons to using a credit card?

Answers

Answer:

Pro is that you can use it anytime to pay for something. Con is that sometimes people don't pay them off.

Answer:

Credit cards allow you to spend money that you don't have at that point in time. You basically take out a tiny loan every single time you use a credit card, but as with all lones that means the credit card charges you interest which is a problem when paying off credit card debt

Explanation:

a tax burden falls more heavily on the side of the market that question 12 options: a) has a fewer number of participants. b) is more inelastic. c) is closer to unit elastic. d) is less inelastic.

Answers

The tax burden falls more heavily on the side of the market that is less inelastic.The elasticity of demand or supply measures the responsiveness of quantity demanded or supplied to changes in price.

When a market is more inelastic, it means that the quantity demanded or supplied is less responsive to changes in price. In this case, the burden of the tax tends to fall more heavily on the side of the market that is less elastic. This is because participants in the less elastic side of the market have limited alternatives and are less able to adjust their behavior in response to price changes.

On the other hand, when a market is more elastic, the burden of the tax tends to be shifted more towards the side of the market that is more elastic. Participants in the more elastic side of the market have greater flexibility to adjust their behavior in response to price changes, thus reducing the impact of the tax on their quantity demanded or supplied.

The tax burden falls more heavily on the side of the market that is less inelastic, as participants in this market have limited ability to adjust their behavior in response to price changes. The burden is shifted away from the side of the market that is more elastic, where participants have greater flexibility to respond to price changes.

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to start a new business, a sole proprietor must meet a small number of government. Which of the following is not one of them

A. Site permit
B. Business license
C. Name
D. Work a minimum of 30 hours

Answers

Answer:

d

Explanation:

D. Work a minimum of 30 hours

what are the stages of the decision-making process?

Answers

Answer:

Step 1: Identify the decision. You realize that you need to make a decision.

Step 2: Gather relevant information.

Step 3: Identify the alternatives.

Step 4: Weigh the evidence.

Step 5: Choose among alternatives.

Step 6: Take action.

Step 7: Review your decision & its consequences.

Explanation:

Brainliest Please

4. If your checking account's balance is
$3,678.89 and you withdraw $1,514, what
is the remaining balance?
A $2,164.89
B $5,192.89
C$2,614.89
D $3,678.89
(Step by step ) please

Answers

A. $2164.89
Basically just subtract, 3,678.89-1514 = 2,164.89

true or false? new retail forms always enter the market and replace existing forms by having a broader array of services; this is referred to as the wheel of retailing.

Answers

The given statement "new retail forms always enter the market and replace existing forms by having a broader array of services; this is referred to as the wheel of retailing." is False.

The "wheel of retailing" refers to a theory that suggests new retail forms typically enter the market at lower price points with limited services or product selection.

As these new retail forms gain acceptance and success, they gradually add more services, expand their product offerings, and increase their prices. This process allows them to compete with more established retailers.

Over time, however, these once-innovative retail forms may become more vulnerable to new entrants, leading to a cycle of new retail forms replacing existing ones. The wheel of retailing does not imply that new retail forms always enter the market with a broader array of services. The statement is false.

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Spell all words correctly.
Identify the marketing research technique implied in the scenario.
A sports beverage company has created a new ad for their product to alr on television. After the ad alrs, they intend to show the ad to a certain
number of customers and then ask them for their feedback regarding the ad. This company is engaging in the
market research technique.

Answers

The marketing research technique implied in the scenario is "advertising research."

What is marketing research?

Generally, Marketing research is the process of gathering and analyzing information about consumers, competitors, and the market environment to inform a company's marketing strategy and decisions. It typically involves collecting data through surveys, focus groups, interviews, and other methods, and then analyzing the data to gain insights about customer preferences and behaviors.

Correct! The marketing research technique implied in the scenario is advertising research, specifically pre-testing an advertisement before it airs to a larger audience.

This helps companies ensure that their advertising messages are effective and resonate with their target audience.

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jim ryan deposited $8,000 at national bank at 6% interest compounded quarterly. what was the effective rate (apy)?

Answers

The effective annual rate for $8,000 that jim ryan deposited at bank with 6% interest compounded quarterly was 6.14%

What is effective annual rate?

It is the real return on a savings account or any interest paying investment when the effects of compounding over time are taken into account. It also reflects the real percentage rate owed in interest on a loan, a credit card, or any other debt.

How to calculate the effective annual rate?

The formula for effective rate is
r = (1 + (i/n))^n - 1

where n = 4 (because it's compounded quarterly

i = 0.06 (the interest from the national bank)

r = ( 1 + ( 0.06 / 4))^4 - 1

= (1.015)^4 - 1

= 0.0614

= 6.14% (rounded)

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For each of the following, is the business a price-taking producer? Explain your answers 1. a. A cappuccino café in a university town where there are dozens of very similar cap.- puccino cafés b. The makers of Pepsi-Cola c. One of many sellers of zucchini at a local farmers' market

Answers

The cappuccino café in a university town where there are dozens of very similar cappuccino cafés can be considered a price-taking producer.

The makers of Pepsi-Cola are not considered price-taking producers. This is because Pepsi-Cola is a well-established brand with a large market share and significant market power. As a result, the company has some control over the price of their product and can set prices that reflect their brand value and market position.


One of many sellers of zucchini at a local farmers' market can be considered a price-taking producer. This is because the seller operates in a market where there are many other sellers offering the same product. In this scenario, the seller has little control over the price of their zucchini and has to set their prices in line with the other sellers in order to remain competitive.

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Jessica wants to save $100,000 in the next 10 years so she can have a good start on her retirement fund. How much will her monthly contributions need to be if she can earn a 12% return on her money?.

Answers

Answer: Jessica wants to save $100,000 in the next 10 years so she can have a good start on her retirement fund. Her monthly contributions will need to be $434.71 if she can earn a 12% return on her money.

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What did parliament hope to accomplish through the first english navigation act? You arrive at the scene of an accident and observe the patient lying face-up on the ground. as you look at the front side of his body, which plane of the body are you observing? I really need help with this question, I cant fail this please :) tysm Please if anyone help i would be greatly grateful A foreign exchange trader with a U.S. bank took a short position of 6,606,544 when the $/ exchange rate was 1.47. Subsequently, the exchange rate has changed to 1.67. Compute the profit or loss of the short position. What role does the Committee of the Whole play in the debate process in theHouse of Representatives? Which version best uses a variety of sentence structures to enhance the flow and writing style is a story? What is the diuretic drug class of spironolactone? Loop Osmotic Potassium-sparing Thiazide You want to borrow some money to pay for a motorbike. The maximum you can repay is $530 per month. The bike dealership offers a fixed 19% p.a compounding monthly (with month-end repayments). If you take a loan for 4 years how much can you afford to borrow? how do you solve this Before the French Revolution, why did therepresentatives of the Third Estate for theNational Assembly?(PointThey felt the voting system in the EstatesGeneral was not fairThey wanted an end to the Reign of TerrorThey demanded that the king be put on trialThey wanted to respond to British Industrialdominance in the coal industry it is an art form that appeals to the sense of hearing composed y combing notes into harmony in 2015, what was the average life expectancy in the u.s. of people who have reached the age of 65? Over the last few decades, the United States beer industry has been characterized by a very clear trend toward an increase in the concentration of the market. Today, some 80% of all beer consumed in the United States is produced by just three companies Anheuser-Busch (which is now owned by lnBev of Belgium), SAB-Miller, and Molson Coors up from 57% of the market in 1980. Anheuser-Busch had almost 50% of the market in 2008, up from just 28.2% in 1980. SAB-Miller (formed in 2002 when South African Breweries merged with Miller Beer) had around 19% of the market, and Molson Coors (formed in 2005 when Canada's Molson merged with Coors) had 11% of the market.Anheuser Busch, SAB-Miller, and Molson Coors dominate the mass market segment of the industry, where competition revolves around aggressive pricing, brand loyalty, distribution channels, and national advertising spending. In contrast, there is another segment in the industry, the premium beer segment, which is served by a large number of microbrewers and importers, the majority of which have a market share of less than 1%. The premium segment focuses on discerning buyers. Producers are engaged in the art of craft brewing. They build their brands around taste and cover higher product costs by charging much higher prices roughly twice as much for a six pack as the mass market brewers. The microbrewers and importers have been gaining share and currently account for about 11% of the total market.Over the past two decades, the industry has changed in a number of ways. First, consumption of beer in the United States has been gradually declining, (even though the consumption of premium beer has been increasing). Per capita consumption of beer peaked at 30 gallons in 1980 and fell to a low of 21.8 gallons in 2007. The decline in consumption was partly due to the growing popularity of substitutes, particularly wine and spirits. In 1994, Americans consumed 1.75 gallons of wine per capita. By 2006, that at figure had risen 2.16 gallons. Consumption of spirits increased from 1.27 gallons per capita in 1994 to 1.34 gallons per capita over the same period.Second, advertising spending has steadily increased, putting smaller brewers at a disadvantage. In 1975, the industry was spending $0.18 per case on advertising; by 2002 it was spending $0.40 per case. (These figures are in inflation adjusted or constant dollars.) Smaller mass-market brewers could not afford the expensive national TV advertising campaigns required to match the spending of the largest firms in the industry, and they saw their market share shrink as a result.Third, due to a combination of technological change in canning and distribution and increased advertising expenditures, the size that a mass-market brewer has to attain to reap all economics of scale called the minimum efficient scale of production has steadily increased. In 1970, the minimum efficient scale of production was estimated to be 8 million barrels of beer a year, suggesting that a market share of 6.4% was required to reap significant economies of scale.By the early 2000s, the minimum efficient scale had increased to 23 million barrels, implying that a market share of 13.06% was required to reap significant economies of scale. By the early 2000s, only 24 mass-market brewers were left in the United States, down from 82 in 1970. Among the remaining mass-market brewers, Anheuser Busch is the most consistent performer due to its superior economies of scale. The company's ROIC has been high, fluctuating in the 17% to 23% range between 1996 and 2008, while net profits grew from $1.1 billion in 1996 to $2 billion in 2008. In contrast, both Coors and Miller, along with most other mass market brewers, have had mediocre financial performance at best. Coors and Miller merged with Molson and SAB, respectively, in an attempt to gain economies of scale.Question a. Imagine you are a consultant for SAB-Miller and need to describe what influences industry profitability. Please use information from the case and not updated information (this industry has changed dramatically).b. Define the industry. What companies should you consider when completing a Porters Five Forces analysis?c. What is the industry competitive structure? why does montag reveal the book of poetry to mildred's guests? What is true about changes to biotic factors in an ecosystem? A It results in changes to salinity or temperature. It results in changes to salinity or temperature. B It doesn't affect the living parts of an ecosystem. C It doesn't affect the living parts of an ecosystem. D It affects food chains but not the overall food web. It affects food chains but not the overall food web. It can result in populations of organisms increasing. the present ages of a father and his son are 40 years and 8 years respectively how many years ago the product of their ages was 105 When DNA is copied, sometimes a new incorrect base pairing appears within the structure of a new dna molecule replacing original base pairs. This mistake is called a base pair ? At a blood drive, 6 donors with type O+blood , 3 donors with typeA+blood , and 3 donors with type B + blood are in line. In how many distinguishable ways can donors be in line? Ti sao chng ta li trt rt