Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output. Variable cost: This cost is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Question

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Answer 1

Question

Chapter 11, Problem 1BCQ

To determine

Concept Introduction:

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable cost: This cost is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Expert Solution & Answer

Explanation of Solution

Many retailers use costly equipment’s to install robotic systems, and these installation charges are a part of fixed cost.

After installation of the robotic system, the fixed cost of the firm will increase.

Hiring workers involves variable costs, and 7,000 workers are hired by A on temporary basis, which will increase its variable cost.

Conclusion:

Thus, the installation of a robotic system will have higher fixed costs, whereas hiring workers will increase its variable cost.

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The African Continental Free Trade Area is a key strategic agreement undertaken by the African Union in recent years. Choose a case from amongst the countries listed below and discuss the challenges and opportunities which exist for this country in entering into this agreement. You can choose a particular industry or product which the country exports/imports to make your case. Lesotho Ghana Mozambique

Answer 2

Question

Chapter 11, Problem 1BCQ

To determine

Concept Introduction:

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable cost: This cost is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Expert Solution & Answer

Explanation of Solution

Many retailers use costly equipment’s to install robotic systems, and these installation charges are a part of fixed cost.

After installation of the robotic system, the fixed cost of the firm will increase.

Hiring workers involves variable costs, and 7,000 workers are hired by A on temporary basis, which will increase its variable cost.

Conclusion:

Thus, the installation of a robotic system will have higher fixed costs, whereas hiring workers will increase its variable cost.

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Answer 3

Question

Chapter 11, Problem 1BCQ

To determine

Concept Introduction:

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable cost: This cost is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Expert Solution & Answer

Explanation of Solution

Many retailers use costly equipment’s to install robotic systems, and these installation charges are a part of fixed cost.

After installation of the robotic system, the fixed cost of the firm will increase.

Hiring workers involves variable costs, and 7,000 workers are hired by A on temporary basis, which will increase its variable cost.

Conclusion:

Thus, the installation of a robotic system will have higher fixed costs, whereas hiring workers will increase its variable cost.

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Answer 4

Question

Chapter 11, Problem 1BCQ

To determine

Concept Introduction:

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable cost: This cost is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Expert Solution & Answer

Explanation of Solution

Many retailers use costly equipment’s to install robotic systems, and these installation charges are a part of fixed cost.

After installation of the robotic system, the fixed cost of the firm will increase.

Hiring workers involves variable costs, and 7,000 workers are hired by A on temporary basis, which will increase its variable cost.

Conclusion:

Thus, the installation of a robotic system will have higher fixed costs, whereas hiring workers will increase its variable cost.

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Answer 5

Chapter 11, Problem 1BCQ

To determine

Concept Introduction:

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable cost: This cost is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Expert Solution & Answer

Explanation of Solution

Many retailers use costly equipment’s to install robotic systems, and these installation charges are a part of fixed cost.

After installation of the robotic system, the fixed cost of the firm will increase.

Hiring workers involves variable costs, and 7,000 workers are hired by A on temporary basis, which will increase its variable cost.

Conclusion:

Thus, the installation of a robotic system will have higher fixed costs, whereas hiring workers will increase its variable cost.

Answer 6

Chapter 11, Problem 1BCQ

To determine

Concept Introduction:

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable cost: This cost is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Expert Solution & Answer

Explanation of Solution

Many retailers use costly equipment’s to install robotic systems, and these installation charges are a part of fixed cost.

After installation of the robotic system, the fixed cost of the firm will increase.

Hiring workers involves variable costs, and 7,000 workers are hired by A on temporary basis, which will increase its variable cost.

Conclusion:

Thus, the installation of a robotic system will have higher fixed costs, whereas hiring workers will increase its variable cost.

Answer 7

Chapter 11, Problem 1BCQ

To determine

Concept Introduction:

Fixed cost: It is a cost which is constant in the short run, it is not related to any change in the production of goods or service, it will be fixed disregarding of an increase or decrease in output.

Variable cost: This cost is directly proportional to the level of output produced, it increases with an increase in output and vice versa.

Answer 8

Expert Solution & Answer

Explanation of Solution

Many retailers use costly equipment’s to install robotic systems, and these installation charges are a part of fixed cost.

After installation of the robotic system, the fixed cost of the firm will increase.

Hiring workers involves variable costs, and 7,000 workers are hired by A on temporary basis, which will increase its variable cost.

Conclusion:

Thus, the installation of a robotic system will have higher fixed costs, whereas hiring workers will increase its variable cost.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Ch. 11 - Prob. 1BCQ Ch. 11 - Prob. 2BCQ Ch. 11 - Prob. 3BCQ Ch. 11 - Prob. 1P Ch. 11 - Prob. 2P Ch. 11 - Prob. 3P Ch. 11 - Prob. 4P Ch. 11 - Prob. 5P Ch. 11 - Prob. 6P Ch. 11 - Prob. 7P

Concept explainers

Explanation of Solution

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Chapter 11 Solutions