Both excess supply and excess demand are a result of
equilibrium
disequilibrium
overproduction.
elasticity

Answers

Answer 1

Answer:

disequilibrium

Explanation:

Disequilibrium is the state of the market when the external and internal forces are stopping from achieving the market balance, so the market is excessively falling out this balance. It can be short-term, or long-term

Disequilibrium happens when the supply is not equal to the demand, when the market is inequal, it can lead to excess supply and excess demand.

Answer 2

Excess demand and excess supply only affect the market as a result of disequilibrium.

What is Disequilibrium?This is a scenario where the quantity supplied does not match the quantity demanded at a given price. Leads to a lost of balance in economy as well as price problems.

When the demand is not enough to meet the supply, this disequilibrium is called excess supply. The reverse is excess demand.

In conclusion, option B is correct.

Find out more on disequilibrium at https://brainly.com/question/657854.


Related Questions

The production possibilities curves suggest that rev: 09_17_2020_QC_CS-228777 Multiple Choice West Mudville should specialize in, and export, both baseballs and baseball bats. workers will try to immigrate from West Mudville to East Mudville. West Mudville should specialize in, and export, baseball bats. East Mudville should specialize in, and export, baseball bats.

Answers

Answer: West Mudville should specialize in, and export, baseball bats.

Explanation:

Each country should specialize in the good that it has a lower opportunity cost in producing.

West Mudville

Opportunity cost of producing baseball bats = 9/9 = 1 baseball

Opportunity cost of producing baseball = 9/9 = 1 baseball bat

East Mudville

Opportunity cost of producing baseball bats = 8/4 = 2 baseballs

Opportunity cost of producing baseball = 4/8 = 0.5 baseball bats

From the above, West Mudville has a lower opportunity cost than East Mudville in the production of baseball bats and so it should specialize in and export that.

Swifty uses the periodic inventory system. For the current month, the beginning inventory consisted of 7300 units that cost $11.00 each. During the month, the company made two purchases: 2800 units at $12.00 each and 12200 units at $12.50 each. Swifty also sold 13100 units during the month. Using the average cost method, what is the amount of cost of goods sold for the month? (Round average cost per unit to 2 decimal places, e.g. 1.48.)
1- $156545.
2- $157200.
3- $151400.
4- $163300.

Answers

Answer:

1. $156545.

Explanation:

Average cost of inventory = {(7300 x $11) + (2800 x $12) + ($12200 x $12.50)}/(7300 + 2800 + 12200)

Average cost of inventory = $80300 + $33600 + $152500)/22300

Average cost of inventory = $11.95 per unit

Cost of goods sold = Units sold * average cost per unit

Cost of goods sold = 13,100 * $11.95

Cost of goods sold = $156,545

When the bond sells at par, the implicit €/$ exchange rate at maturity of a Euro/U.S. dollar dual currency bond that pays $651.25 at maturity per €1,000, is:________ A) €1.54/$1.00. B) €1.22/$1.00. C) €1.79/$1.00. D) €1/$1.00.

Answers

Answer:

€1.54/$1.00

Explanation:

When the bond sells at par, the implicit €/$ exchange rate pays €651.25 at maturity per €1000

651.25/1000= 1/x

Cross multiply

651.25x = 1000

x= 1000/651.25

x= 1.54

Hence the implicit exchange rate is €1.54/$1.00

Custom Cars purchased some $39,000 of fixed assets two years ago that are classified as 5-year MACRS property. The MACRS rates are 20 percent, 32 percent, 19.2 percent, 11.52 percent, 11.52 percent, and 5.76 percent for Years 1 to 6, respectively. The tax rate is 34 percent. If the assets are sold today for $19,000, what will be the aftertax cash flow from the sale?

Answers

Answer:

$18,904.80

Explanation:

Calculation for what will be the aftertax cash flow from the sales

First step is to calculate the Accumulated Depreciation

Accumulated Depreciation = (0.2 + 0.32)*39,000 Accumulated Depreciation= 0.52*39,000

Accumulated Depreciation = $20,280

Second Step is to calculate the Book Value using this formula

Book Value = Initial Cost –Accumulated Depreciation

Let plug in the formula

Book Value = $39,000 - $20,280

Book Value = $18,720

Third step is to calculate the profit using this formula

Profit = Sales value–Book Value

Profit= $19,000 - $18,720

Profit = $280

Fourth Step is to calculate the taxes

Taxes = 0.34*280

Taxes = $95.20

Last step is to calculate the aftertax cash flow from the sale using this formula

Aftertax cash flow from the sale=Assets sold today-Taxes

Let plug in the formula

Aftertax cash flow from the sale= 19,000 - $58.80

Aftertax cash flow from the sale= $18,904.80

Therefore the Aftertax cash flow from the sale will be $18,904.80

Recruitment is an effort by an organization to keep employees and is the opposite of turnover.
a. True

b. False

Answers

Answer:

True

Explanation:

Phillips Co. currently pays no dividend. The company is anticipating dividends of $.02, $.05, $.10, $.20, and $.30 over the next 5 years, respectively. After that, the company anticipates increasing the dividend by 3.5 percent annually. One step in computing the value of this stock today is to compute the value of:_________
a) P5.
b) P3.
c) P1.
d) P6.
e) P4.

Answers

Answer:

a) P5.

Explanation:

The formula to calculate the current price stock is as follow:

P0 = D1/(1+Ke)^1 + D2/(1+Ke)^2 + D3/(1+Ke)^3 + D4/(1+Ke)^4 + D5/(1+Ke)^5 + P5/(1+Ke)^5

The Price of share is P

The dividend is D

The required rate of return is Ke

Colorado Rocky Cookie Company offers credit terms to its customers. At the end of 2021, accounts receivable totaled $665,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $40,000 at the beginning of 2021 and $25,000 in receivables were written off during the year as uncollectible. Also, $2,000 in cash was received in December from a customer whose account previously had been written off. The company estimates bad debts by applying a percentage of 15% to accounts receivable at the end of the year.

Required:
Prepare journal entries to record the write-off of receivables, the collection of $2,000 for previously written off receivables, and the year-end adjusting entry for bad debt expense.

Answers

Answer:

Bad debt expenses is $82,750

Explanation:

Recording the write off receivables

Date  Account Titles and Explanation                 Debit       Credit

          Allowances for uncollectible accounts   $25,000

               Accounts receivables                                              $25,000

           (To write off an uncollectible amount)

Recording the reinstatement of an account previously written off

Date  Account Titles and Explanation                 Debit       Credit

          Account receivables                                  $2,000

                 Allowances for uncollectible accounts               $2,000

          (To reinstatement of an account previously written off)

Recording collection of account previously written off

Date  Account Titles and Explanation                 Debit       Credit

          Cash                                                               $2,000

                           Account receivables                                  $2,000

          (To record the cash received)

Recording bad debt expenses for the year

Date  Account Titles and Explanation                 Debit       Credit

          Bad debt Expenses                                   $82,750

                Allowances for doubtful accounts                        $82,750

           (To record estimated bad debts)

Workings

Particulars                        Amount

Beginning balance                    $40,000

Less: Receivables write off       $25,000

Add: Collection of receivables  $2,000

        previously written off

                                                     $17,000

Less: Required allowances         $99,750 ($665,000*15%)                  

Bad debt expenses                     $82,750

Thus, the bad debt expenses is $82,750

If your company matches 75 cents on the dollar,and you contribute $200 a paycheck, how much will your employee match?

Answers

I’m not sure but roughly 2.66. PLEASE don’t get mad if I’m wrong

Larry recorded the following donations this year: $690 cash to a family in need $2,590 to a church $690 cash to a political campaign To the Salvation Army household items that originally cost $1,390 but are worth $490. What is Larry's maximum allowable charitable contribution if his AGI is $61,900?

Answers

Answer: $3080

Explanation:

Larry's maximum allowable charitable contribution if his AGI is $61,900 will be calculated as the addition of the $2,590 to a church and the worth of $490 of household items. This will be:

= $2590 + $490

= $3080

Therefore, the answer is $3080

Daily demand for a product is 200 units. the production lead time is 2 days. a 1-day safety stokc is kept. how many kanban containers will be needed if one container holds 100 units?

Answers

Answer:6 kanban containers are needed  

Explanation: Using the formula

Number of kanban containers =( dL + S)/C

Where

Average demand, d = 200

Lead time, L = 2 days

Safety stock is 1 day, S = 200 units

Quantity in containers, C  = 100

Number of kanban containers = dL + S/C

= (200 x 2 + 200)/ 100 =400+200/100

= 600/100 = 6

Therefore 6 kanban containers are needed  

Ruby operates a hobby supply store. She maintains her books using the cash method. At the end of the year, her accountant computes her accrual basis income that is used on her tax return.

For 2020, Ruby had cash receipts of $840,000, which included $100,000 collected on accounts receivable from 2019 sales. It also included the proceeds of a $50,000 bank loan. At the end of 2020, she had $175,000 in accounts receivable from customers, all from 2020 sales. Ruby paid cash for all of the purchases. The total amount she paid for merchandise in 2020 was $560,000. At the end of 2019, she had merchandise on hand with a cost of $45,000. At the end of 2020, the cost of merchandise on hand was $80,000.

1. Ruby's accrual basis gross receipts for 2020 are_______ $ .

2. The cost of goods sold for 2020 under the accrual method is________ $ .

3. The gross profit from merchandise sales for 2020 under the accrual basis is________ $ .

Answers

Answer:

Ruby

1. Ruby's accrual basis gross receipts for 2020 are_______ $740,000.

2. The cost of goods sold for 2020 under the accrual method is________ $525,000.

3. The gross profit from merchandise sales for 2020 under the accrual basis is________ $340,000.

Explanation:

a) Data and Calculations:

2020 Cash receipts =        $840,000

2019 accounts receivable   (100,000)

Bank loan                              (50,000)

Receipts from customers $690,000

Bank loan                               50,000

Gross receipts                   $740,000

Receipts from customers $690,000

plus accounts receivable     175,000

Total sales for 2020         $865,000

Beginning inventory (2019) =    $45,000

Amount paid for purchases = $560,000

Ending inventory (2020) =        $80,000

Cost of goods sold =              $525,000

Total sales for 2020    $865,000

Cost of goods sold        525,000

Gross profit =               $340,000

Banks and other financial institutions can grant a small business a _____, which is an agreement by which a financial institution promises to lend a business a predetermined sum on demand. a. mutual fund.b. line of credit.c. non-recourse loan.d. trust fund.e. trade credit.

Answers

Answer:

b. line of credit

Explanation:

line of credit can be regarded as credit facility that is been offered to customer as well as businesses so that when ever they need funds they can draw on it. Line of credit can be offered by the government, bank as well as individual. Line of credit gives room to customer for accessibility of funds anytime so far the limit has not been exceeded. It should be noted that a line of credit is an agreement by which a financial institution promises to lend a business a predetermined sum on demand,

It is estimated that the annual maintenance cost of a statue erected in front of a public building in a state capital would be $1,000. Assuming an interest rate of 4% compounded annually, determine the capitalized cost for maintaining the statue.

Answers

Answer:

$24,630.54

Explanation:

Calculation to determine the capitalized cost for maintaining the statue

First step is to calculate the Effective interest rate

Effective interest rate = (1+.04/4) ^4 -1

Effective interest rate= 0.04060

Last step is to calculat the capitalized cost for maintaining the statue using this formula

Capitalized cost =Annual maintenance cost /Effective interest rate

Let plug in the formula

Capitalized cost = ($1,000/0.04060)

Capitalized cost = $24,630.54

Therefore the capitalized cost for maintaining the statue will be $24,630.54

The NASDAQ stock market bubble peaked at 5,445 in 2000. Two and a half years later it had fallen to 1,285. What was the percentage decline?

Answers

Answer:

76.40%

Explanation:

Calculation for What was the percentage decline

Using this formula

Percentage decline=+Fallen stock market bubble-Peaked stock market bubble)÷Peaked stock market bubble

Let plug in the formula

Percentage decline=(1,285 - 5,445) ÷5,445

Percentage decline=-4,160÷5,445

Percentage decline=-0.7640*100

Percentage decline=-76.40%

Therefore the percentage decline will be -76.40%

How Many Pints of Blackberries?

The pleasure you get from each pint of freshly picked blackberries is $2.00. It takes you 12 minutes to pick the first pint, and each additional pint takes an additional 2 minutes (14 minutes for the second pint, 16 minutes for the third pint, and so on). The opportunity cost of your time is $0.10 per minute.

a. How many pints of blackberries should you pick? Illustrate with a complete graph.

Answers

Answer:

none because they could be poiseness

Explanation:

A 20-year maturity bond with face value of $1,000 makes annual coupon payments and has a coupon rate of 9.40%. (Do not round intermediate calculations. Enter your answers as a percent rounded to 3 decimal places.)
a. What is the bondâs yield to maturity if the bond is selling for $1,040?
Yield to maturity %
b. What is the bondâs yield to maturity if the bond is selling for $1,000?
Yield to maturity %
c. What is the bondâs yield to maturity if the bond is selling for $1,240?
Yield to maturity %

Answers

Answer and Explanation:

The computation of the yield to maturity is shown below:

a. When the bond sale price is $1,040

Given that

FV = $1,000

PV = $1,040

PMT = $1,000 × 9.40% = $94

NPER = 20

The formula is shown below:

= RATE(NPER;PMT;-PV;FV;TYPE)

After applying the above formula, the yield to maturity is 8.9630%

b. When the bond sale price is $1,000

Given that

FV = $1,000

PV = $1,000

PMT = $1,000 × 9.40% = $94

NPER = 20

The formula is shown below:

= RATE(NPER;PMT;-PV;FV;TYPE)

After applying the above formula, the yield to maturity is 9.4%

c. When the bond sale price is $1,240

Given that

FV = $1,000

PV = $1,240

PMT = $1,000 × 9.40% = $94

NPER = 20

The formula is shown below:

= RATE(NPER;PMT;-PV;FV;TYPE)

After applying the above formula, the yield to maturity is 7.1144%

Why is it important to choose a bank that is a member of the FDIC? a. The FDIC is the regulatory body that licenses banks, so a non-FDIC bank is illegal. b. The FDIC is a union that prevents banks from taking advantage of customers, so you will receive better service with an FDIC bank. c. The FDIC is a government bureau that insures the money that customers deposit in the bank, so your money is safer in an FDIC bank. d. Only FDIC banks are legally allowed to issue loans, so if you ever anticipate needing a loan, you will need to use an FDIC bank. Please select the best answer from the choices provided A B C D

Answers

Answer:

(C) The FDIC is a government bureau that insures the money that customers deposit in the bank, so your money is safer in an FDIC bank.

Explanation: I completed the test and got a 100 on EDG. 2020

Answer:

c

Explanation:

A firm issued 10,000 shares of $2 par-value common stock, receiving proceeds of $40 per share. The amount recorded for the paid-in capital in excess of par account is ________.A) $0 in the Common Stock account.
B) $0 in the Paid-in Capital in Excess of Par account.
C) $400,000 in the Common Stock account.
D) $400,000 in the Paid-in Capital in Excess of Par account.

Answers

Answer:

the amount recorded for the paid-in capital in excess of par account is $380,000

Explanation:

The computation of the amount of paid in capital in excess of par account is shown below:

= Number of shares issued × (per share value - par value of the common stock)

= 10,000 shares × ($40 - $2)

= 10,000 shares × $38

= $380,000

Hence, the amount recorded for the paid-in capital in excess of par account is $380,000

The options that are given are wrong

The time value of moneyConsider the following scenarios:Simon FamilyThe Simons have saved $5,000 towards their goal to have $45,000 for a down payment on a house in 6 years. They will put the $5,000 in an account along with money they will deposit annually. They donât know how much that annual deposit should be, so theyâve asked you to calculate it. They have found a savings institution that will pay 6% interest.Perkette FamilyThe Perkettes have set a goal to have $45,000 for a down payment on a house in 6 years. They have not saved anything so far. They have asked you to calculate how much they will need to put away each year to achieve their $45,000 down-payment goal. They have found a savings institution that will pay 6% interest.Use the scenarios along with the following factor table data. Note that the complete Future Value and Future Value Annuity tables (as well as the Present Value and Present Value Annuity tables) are located in the appendix in your text.Table of Future Value Factors:Interest RateYear 5% 6% 8%1 1.050 1.060 1.0802 1.102 1.120 1.1663 1.158 1.190 1.2604 1.216 1.260 1.3605 1.276 1.340 1.4696 1.340 1.420 1.5878 1.477 1.590 1.85110 1.629 1.790 2.159Table of Future Value Annuity Factors:Interest RateYear 5% 6% 8%1 1.000 1.000 1.0002 2.050 2.060 2.0803 3.152 3.180 3.2464 4.310 4.380 4.5065 5.526 5.630 5.8676 6.802 6.970 7.3368 9.549 9.890 10.63710 12.578 13.180 14.4871. What is the amount of money the Simons will need to deposit annually (rounded to the nearest two decimal places) to achieve their down-payment goal?2. What is the amount of money the Perkettes will need to deposit annually (rounded to the nearest two decimal places) to achieve their down-payment goal?

Answers

Answer:

annual payment = $5,496.25

Explanation:

the $5,000 that they deposit today will be worth $5,000 x (1 + 6%)⁶ = $6,691.13 in 6 years.

this means that they need to save an extra $45,000 - $6,691.13 = $38,308.87

we can calculate the amount that they need to deposit at the end of every year to have $38,308.87 in 6 years by using the future value of an annuity formula:

FV = payment x annuity factor

payment = FV / annuity factor

FV = $38,308.87 FV annuity factor, 6%, 6 periods = 6.970

annual payment = $38,308.87 / 6.97 = $5,496.25

________ is a crime in which an imposter obtains key pieces of personal information to impersonate someone else.
A) Identity theft
B) Spoofing
C) Social engineering
D) Evil twins

Answers

Answer:

A)Identity theft

Explanation:

I hope it helps you

The police chief mentions that unionized emergency personnel had already been deployed, so pulling them back would not be worth it. However, there may be long term savings in pulling them back. If the police chief is looking solely at short-term costs and benefits, what type of decision-making bias would this represent? a) discounting the future b) traming effects c) illusion of control d) representativeness

Answers

Answer:

a) discounting the future

Explanation:

Police chief mentions that unionized emergency personnel and When police superiors look only at short-term costs and benefits, decision-making bias discounts the future in this case because it is a bias such as prioritizing the present, rejecting it, or avoiding future going. Long-term effect.so that here the correct option is a) discounting the future

Mike Finley wishes to become a millionaire. His money market fund has a balance of $403,884 and has a guaranteed interest rate of 12%. How many years must Mike leave that balance in the fund in order to get his desired $1,000,000?
Assume that Sally Williams desires to accumulate $1 million in 15 years using her money market fund balance of $209,004. At what interest rate must Sallyâs investment compound annually? (Round answer to 0 decimal places, e.g. 5%.)

Answers

Answer:

Mike Finley

t = 7.999983133 years rounded off to 8 years

Sally Williams

r = 0.110000123 or 11.0000123% rounded off to 11.00%

Explanation:

Mike Finley

To calculate the time period it will take Mike Finley to become a millionaire, we will use the formula of future value of cash flow. The formula for future value of cash flow is as follows,

Future value = Present value * (1+r)^t

Where,

r is the interest rate or rate of returnt is the time period in years

Plugging in the values for Future value, present value and r in the formula, we can calculate the t to be,

1000000 = 403884 * (1+0.12)^t

1000000 / 403884  =  1.12^t

2.475958444 = 1.12^t

Taking log on both sides.

ln(2.475958444) / ln(1.12)  =  t

t = 7.999983133 years rounded off to 8 years

Sally Williams

We will use the same formula for future value of cash flows as we used above to calculate the rate at which investment should be compounded annually to grow to $1 million.

1000000 = 209004 * (1+r)^15

1000000 / 209004 = (1+r)^15

4.784597424 = (1+r)^15

Taking root of 1 on both sides.

(4.784597424)^1/15  =  (1+r)^15 * 1/15

1.110000123  =  1+r

1.110000123 - 1 = r

r = 0.110000123 or 11.0000123% rounded off to 11.00%

Parker is a highly skilled sales person at Byberry, which is a 30-year-old company that has grown significantly in terms of revenue and product offerings. It sponsors a pension plan that provides a benefit of 2% times the years of participation times the average of the final three years of salary. Parker has worked for Byberry for the last 30 years and earned $200,000 two years ago, $150,000 last year, and $250,000 this year. If he is retiring this year, how much should he expect to receive as a pension benefit?

Answers

Answer:

$120,000

Explanation:

The retirement benefit that Parker expects is

2% x number of years worked( 30 ) x {($200,000 +$150,000 +$250,000) /3}

=2/100 x 30 x (600,000/3)

=0.02 x 30 x $200,000

=0.6 x $200,000

=$120,000

How much will Marie have in her retirement account in years if her contribution is ​$ per year and the annual return on the account is ​%? How much of this amount represents​ interest? The amount Marie will have is:_________

Answers

Answer:

The amount is constant so is an annuity and the value at the end of 10 years is the future value of an annuity.

Future value of annuity = Annuity * Future value interest factor of annuity, 10 years, 6%

= 7,000 * 13.1808

= $‭92,265.6‬0

Value at the end of 10 years is ‭$‭92,265.6‬0.

The interest is;

= ‭92,265.6‬0 - (7,000 * 10 years)

= ‭92,265.6‬0 - 70,000

= $22,265.60

Sperry Company had beginning inventory of $80,000, purchased merchandise during the period for $140,000, and had ending inventory of $95,000. How much was goods available for sale? A. $175.000 B. $155,000 C. $315,000 D. $125,000 E. None of these

Answers

Answer:

cost of goods available for sale= $220,000

Explanation:

Giving the following information:

Beginning inventory of $80,000

Purchased merchandise for $140,000

To calculate the cost of goods available for sale, we need to use the following formula:

cost of goods available for sale= beginning inventory + purchase

cost of goods available for sale= 80,000 + 140,000

cost of goods available for sale= $220,000

What is an Umbrella Policy? How does it work?

Answers

Answer:

An umbrella policy is the type of insurance that is made to additionally secure personal liability and it is necessary to have if the person is responsible for some damage made.

Explanation:

Umbrella policy not only covers the policyholder, but it also covers the members of his family. If you are responsible for the car accident, and your car is covered with the umbrella policy, they will be responsible for covering the medical expenses in case of someone getting hurt.

The transshipment problem: a. Is the special case of LP problem. b. Can be modeled using the transportation algorithm. c. Can be solved to optimality by manual methods. d. Is the most general type of network flow problems.

Answers

Answer:

Option "A" is the correct answer to the following question.

Explanation:

The transshipment issue is the particular case of the issue of LLP.

A special Linear Programming Problem is a transshipment problem because it approaches the premise that products can both be obtained and delivered at the very same time by both recovery and recycling.

A country's currency is said to be _____ when the country's government allows both residents and nonresidents to purchase unlimited amounts of a foreign currency with it.
A) externally convertible
B) nonconvertible
C) internally convertible
D) freely convertible

Answers

Answer:

D) freely convertible

Explanation:

Since in the question it is mentioned that the country government permits to both residents and non-residents for acquiring the non-limited values of the foreign currency so this represents the freely convertible.

As in the case of freely convertible the currency should be traded without having any kind of limitations that are imposed by the monetary authorties

Hence, the correct option is D.

All of the following are true regarding long-term notes payable except:



a.The note’s carrying value at any time equals its face value minus any unamortized discount or plus any unamortized premium.


b.Notes payable are usually issued by a single lender.


c.The market rate of interest at the time of issuance determines the periodic cash payment amount.


d.Over the life of the note, the interest expense allocated to each period is computed by multiplying the market rate by the beginning-of-period balance.


e.The equal total payments pattern has changing amounts of both interest and principal.

Answers

The correct answer is:

c. The market rate of interest at the time of issuance determines the periodic cash payment amount.

A long-term note is a promissory note that reflects a loan from a bank or other creditor, option c. is not a long-term note.

What does it mean to have a long-term note?

A long-term note is a promissory note that reflects a loan from a bank or other creditor, but a bond is a more complicated financial instrument that typically entails debt to a number of creditors.

Option c. The periodic cash payment amount is determined by the market rate of interest at the time of issuance.

Learn more about  long-term notes here:

https://brainly.com/question/14803205

#SPJ2

The relevant production range for Challenger Trailers, Inc. is between 120,000 units and 190,000 units per month. If the company produces beyond 190,000 units per month:__________. A. the fixed costs and the variable cost per unit will not change B. the fixed costs may change, but the variable cost per unit will remain the same C. the fixed costs will remain the same, but the variable cost per unit may change D. both the fixed costs and the variable cost per unit may change

Answers

Answer:  D. both the fixed costs and the variable cost per unit may change

Explanation:

It is said that Fixed costs do not change regardless of production level but this is not entirely true. Fixed costs usually do not change for a production range but if the range is passed, the fixed costs might then increase and a new fixed cost for the new relevant range will be charged.

Variable costs are variable because they change with production so if the company is producing more units, they will be incurring more variable costs.

In conclusion therefore, if the company produces more units than its relevant production range, it risks both fixed and variable costs changing.

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