A manager of a company producing computer chips knows that in the early stages of production for a new product, the expenditures exceed receipts, whereas in the latter stages, the reverse is true. Give an explanation for this phenomenon
What will be an ideal response?
The learning curve theory states that the direct labor costs will exceed the average in the early stages of production, whereas the reverse is true in the latter stages. Pricing is often predicted on average costs.
Business
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What is a cost that changes with the level of output?
a. an elastic cost b. a fixed cost c. a liquidity cost d. a variable cost
Business
Computer-based information systems that allow users to analyze, manipulate, and present data in a manner that aids higher-level decision making are called ________
Fill in the blank(s) with the appropriate word(s).
Business