Two stores - Lazy Guys and Ralph's Recliners - are located in the same city. Both stores buy recliner chairs from the same manufacturer at the same price and both stores are about the same size, so that the fixed costs of production for both stores are the same. Ralph's Recliners sells more recliners per month and Ralph's has a lower average total cost of production. Which of the following can explain why the average total cost of production is lower for Ralph's Recliners?
A. The price of recliners charged by Ralph's is greater than the price charged by Lazy Guys.
B. Because Ralph's Recliners sells more output its average fixed costs are lower than Lazy Guy's average fixed costs.
C. Ralph's explicit costs are less because Ralph owns the land on which his building is located. Lazy Guy must make lease payments for the land on which its store is located.
D. The rent Lazy Guys pays for its building is greater than the rent paid by Ralph's Recliners.
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Two stores - Lazy Guys and Ralph's Recliners - are located in the same city. Both stores buy recliner chairs from the same manufacturer at ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
In active transport, a. no energy input is required from the cell. b. the plasma membrane forms a pocket that pinches inward, forming a vesicle that contains material from outside the cell. c.
Answers (1)
Chicken costs $1.28 per kilogram at the supermarket. which equation below shows the relationship between total cost (t), price (p), and kilograms purchased (k) ?
Answers (1)
John's brother, Phil, loaned him $10,000 to start his business. John didn't do too well and planned to file for bankruptcy. In May, he gave Phil his car worth $8,000 to satisfy the debt. John filed his petition in November.
Answers (1)
Alison's dress shop buys dresses from McGuire Manufacturing. Alison purchased dresses from McGuire on July 17 and received an invoice with a list price amount of $5,900 and payment terms of 2/10, n/30. Alison uses the net method to record purchases.
Answers (1)
Fine motor company buys gas pedals and other parts from general mechanix, inc., and puts them in its vehicles without changing their composition. if the pedals or other parts are defective, strictly liable for any damage caused by the defects are
Answers (1)
New Questions in Business
Sunny Day Manufacturing Company has a current stock price of $33.35 per share, and is expected to pay a per-share dividend of $2.03 at the end of the year.
Answers (1)
Which is a basic economic question that must be answered by all economic systems? a How will goods and services be produced? b How will government collect income taxes? c What will be the amount of the minimum wage for workers?
Answers (1)
El Tapatio purchased restaurant furniture on September 1, 2021, for $43,000. Residual value at the end of an estimated 10-year service life is expected to be $5,800.
Answers (1)
As you consider the factors of production, which of the following did management theorist Peter Drucker believe to be one of the most important contributing factors to increasing our nation's wealth? a. Landb. Laborc. Knowledged. Capital
Answers (1)
Similarity between labor and entrepreneurship
Answers (1)