Answers
According to the profit maximization rule, if a company wants to maximize its profits, it must select a production level where the marginal cost (MC) and marginal revenue (MR) are equal and the marginal cost curve is rising.
The marginal costs are at their lowest at a production maximize level of 1000 units, hence it must produce at a level where MC = MR. i.e., it costs more to produce one more product than it did previously. Less money is made as a result in the end. Find less expensive raw materials than those being used now are an example of profit maximisation.
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Answer: Where marginal cost meets marginal revenue
Explanation:
Related Questions
What is the main advantage of secondary research data over primary
research data?
O A. It is more easily accessible and more cost effective.
B. It is generally more accurate than primary data.
C. It provides a much smaller sample, though with the same measure
of depth.
OD. It focuses more on the target market.
Answers
Answer:
A.
Explanation:
it is going to be A. Because of the question and the answer is isthmus is more easily accessible and more cost effective.
which of the following are true? multiple select question. ideally, we should use book values in the wacc. ideally, we should use market values in the wacc. book values are often similar to market values for equity. book values are often similar to market values for debt.
Answers
The following statements are true:
Ideally, we should use market values in the WACC. Book values are often similar to market values for equity. Book values are often similar to market values for debt.Using Market Values and Book Values in the WACCThe Weighted Average Cost of Capital (WACC) is one of the most important metrics used to evaluate the cost of capital for a company. WACC is calculated by taking into account the cost of equity, debt and any other sources of capital. The ideal way to calculate WACC is to use market values, as they are more reflective of the current market environment.
However, book values are often similar to market values for both equity and debt, making them a good substitute if market values are not available. Therefore, it is accurate to say that book values are often similar to market values for both equity and debt.
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QUESTION 8 of 10: The function of a financial planner is:
Oa) To share in the profit/loss of your investments
b) To convince you to purchase large-cap stocks
c) To design your personal budget plan
Od) To help you define and reach your financial goals
Answers
The function of a financial planner is to help individuals or organizations define and reach their financial goals through a variety of services, including budget planning. So, correct option is D.
Unlike an investment advisor who is primarily focused on managing investments, a financial planner takes a more holistic approach to a client's financial well-being. They work closely with clients to understand their current financial situation, identify their goals and objectives, and develop a personalized financial plan to achieve those goals.
Financial planners do not share in the profit or loss of their clients' investments, nor do they aim to convince their clients to purchase specific stocks. Instead, they provide unbiased advice and recommendations based on their clients' individual needs and objectives.
Ultimately, the goal of a financial planner is to help clients achieve financial security and success by providing expert guidance, ongoing support, and customized solutions to meet their unique financial needs.
So, correct option is D.
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the three uses of marketing research are (1) identifying market opportunities and problems, (2) generating, refining, and evaluating potential market actions, and (3) monitoring stock market performance. true false
Answers
The three uses of marketing research are (1) identifying market opportunities and problems, (2) generating, refining, and evaluating potential market actions, and (3) monitoring stock market performance : True.
Give a brief account on marketing research.Marketing research is the methodical gathering, logging, and analysis of qualitative and quantitative data about issues pertaining to the marketing of goods and services. The goal of marketing research (MR) is to give management information about the market that is current, pertinent, accurate, dependable, and legitimate. Marketing research must give reliable information due to the competitive nature of the industry and the rising costs associated with bad decisions. Sound judgment, intuition, or even pure feeling, are not the foundations of good decisions.
This entails defining the data needed to address these concerns, devising the information collection strategy, and overseeing and putting the data collection process into practice. These outcomes and conclusions, together with their ramifications, are communicated to those with the authority to take action on them after data analysis.
A series of commercial tasks, including market research, marketing research, and marketing, are occasionally conducted unofficially.
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A family buys a new home for $150,000. However, they also have to set
aside an extra $1,500 to pay to the local government for owning the
house. This is the result of the:
Answers
Answer:
Property tax
Explanation:
Answer:
Explanation:
It is property tax
You decide to decrease the price of your product to increase total sales revenue, because you believe your product's demand is
A) perfectly inelastic
B) unit elastic
C) price elastic
D) price inelastic
Answers
Answer:
C) price elastic.
Explanation:
Two key aspects of financial planning are cash planning and profit planning. Cash planning involves the preparation of the cash budget and profit planning involves preparation of pro forma statements. To make cash budget and pro forma statements for a firm, accounting knowledge is needed. Do accounting courses you took before help you better understand how to make cash budget and pro forma income statement and balance sheet? Explain.
Answers
Yes. Accounting courses I took before helps us understand how to make cash budget and pro forma income statement and balance sheet.
Here's how accounting courses can help individuals in creating cash budgets, pro forma income statements, and balance sheets:
Cash Budget: Accounting courses teach students about the importance of cash flow management and how to prepare a cash budget. Pro Forma Income Statement: Accounting courses teach students how to analyze historical financial data and use it to forecast future performance. Balance Sheet: Accounting courses provide a comprehensive understanding of balance sheets and their components. Students learn how to analyze assets, liabilities, and shareholders' equity to assess the financial position of a company.By studying accounting, individuals gain a solid foundation in financial concepts, reporting standards, and analytical techniques. This knowledge equips them with the skills necessary to create cash budgets, pro forma income statements, and balance sheets effectively.
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What is inexpensive and designer clothing?
Answers
Rue La La. Rue La La offers designer brands at up to 70% off retail prices through “Boutique” sales - think flash sales by designer. ...
Neiman Marcus Last Call. ...
6PM. ...
Gilt. ...
Bluefly. ...
Nordstrom Rack.
Question 5 of 10
What is one disadvantage of a trade school education over a four-year
college?
A. The cost will be higher.
B. You will have to study longer.
C. You will be less prepared to work.
OD. Your courses will not be as diverse.
Answers
Answer: your answer is B
Explanation:
A company had issued 10,000 bonds which had a par value of $50 and currently sold at $60. The company is expected to pay 10% interest for the next 5 years. In addition to this the preferred stock of the company is issued at $150 which a promised dividend of 8 per share. The common stock holders will receive $2 per share and this will grow T 8% for the first 3 years, 6% for the other 3 years and it will grow at 5% for indefinite period. Assume the tax rate is 35%. The capital structure of the company is composed of 600,000 common stock, 200,000 preferred stock and 100,000 is debt.
A) Find the cost of capital for each sources A) Find the weighted average cost of capital
Answers
To calculate the cost of capital for each source, we'll consider the cost of debt, cost of preferred stock, and cost of common stock.
1. Cost of Debt:
The cost of debt is the interest rate the company pays on its debt. In this case, the company has issued bonds with a par value of $50, currently selling at $60, and a coupon rate of 10% for 5 years.
Cost of Debt = (Interest Expense / (Bonds Market Value - Bond Discount)) * (1 - Tax Rate)
Interest Expense = Bonds Market Value * Coupon Rate
Bonds Market Value = Number of Bonds * Bond Selling Price
Number of Bonds = 10,000
Bond Selling Price = $60
Coupon Rate = 10%
Tax Rate = 35%
Interest Expense = $60 * 10,000 * 10% = $60,000
Bonds Market Value = 10,000 * $60 = $600,000
Bond Discount = Par Value - Bond Selling Price = $50 - $60 = -$10 (Negative value because the bond is selling at a premium)
Cost of Debt = ($60,000 / ($600,000 - (-$10))) * (1 - 0.35) = $6,000 / $600,010 * 0.65 = 0.064997 (approximately 6.50%)
2. Cost of Preferred Stock:
The cost of preferred stock is the dividend rate the company pays on its preferred stock. In this case, the preferred stock is issued at $150 with a promised dividend of $8 per share.
Cost of Preferred Stock = Dividend / Preferred Stock Price
Dividend = $8
Preferred Stock Price = $150
Cost of Preferred Stock = $8 / $150 = 0.053333 (approximately 5.33%)
3. Cost of Common Stock:
The cost of common stock is calculated using the dividend growth model. The dividend is expected to grow at different rates for different periods.
First 3 years: Dividend Growth Rate = 8%
Next 3 years: Dividend Growth Rate = 6%
Indefinite period: Dividend Growth Rate = 5%
Cost of Common Stock = Dividend / Current Stock Price + Growth Rate
Dividend = $2
Current Stock Price = Market Price
Growth Rate = Dividend Growth Rate
Cost of Common Stock = $2 / Market Price + Growth Rate
Weighted Average Cost of Capital (WACC):
The weighted average cost of capital is the weighted average of the costs of each source of capital, considering their respective proportions in the capital structure.
WACC = (Weight of Debt * Cost of Debt) + (Weight of Preferred Stock * Cost of Preferred Stock) + (Weight of Common Stock * Cost of Common Stock)
Weight of Debt = Debt / Total Capital
Weight of Preferred Stock = Preferred Stock / Total Capital
Weight of Common Stock = Common Stock / Total Capital
Debt = $100,000
Preferred Stock = $200,000
Common Stock = $600,000
Total Capital = Debt + Preferred Stock + Common Stock = $100,000 + $200,000 + $600,000 = $900,000
Weight of Debt = $100,000 / $900,000 = 0.111111 (approximately 11.11%)
Weight of Preferred Stock = $200,000 / $900,000 = 0.222222 (approximately 22.22%)
Weight of Common Stock = $600,000 / $900,000 = 0.666667 (approximately 66.67%)
WACC = (0.111111 * 6.50%) + (0.222222 * 5.
The cost of capital for each source can be calculated by determining the cost of debt, cost of preferred stock, and cost of common equity. The cost of debt is 8.33%, the cost of preferred stock is 5.33%, and the cost of common equity is 14.77%.
To find the cost of capital for each source, we will calculate the cost of debt, cost of preferred stock, and cost of common equity.
The cost of debt can be calculated using the formula: Cost of Debt = (Annual Interest Payment / Bond Price) x 100%. In this case, the bond price is $60 and the annual interest payment is 10% of the bond's par value of $50, so the cost of debt is (0.10 * $50 / $60) x 100% = 8.33%.
The cost of preferred stock can be calculated using the formula: Cost of Preferred Stock = Dividend / Stock Price. In this case, the dividend is $8 per share and the stock price is $150, so the cost of preferred stock is $8 / $150 = 5.33%.
The cost of common equity can be calculated using the Dividend Discount Model (DDM) formula: Cost of Common Equity = Dividend / Current Stock Price + Growth Rate. The growth rate for the first 3 years is 8%, for the following 3 years is 6%, and for an indefinite period is 5%. The dividend for common stock is $2 per share. The current stock price can be calculated using the market value of the common stock ($2 * 600,000 = $1,200,000) divided by the number of shares (600,000), which equals $2 per share. The cost of common equity is $2 / $2 + 0.08 + 0.06 + 0.05 = 14.77%.
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In its first year of operations, Roma Company reports the following:
• Earned revenues of $45,000 ($37,000 cash received from customers).
• Incurred expenses of $25,500 ($20,250 cash paid toward them).
• Prepaid $6,750 cash for costs that will not be expensed until next year.
Compute the company’s first-year net income under both the cash basis and the accrual basis of accounting.
Answers
Answer:
Net Income - Cash basis = $10000
Net Income - Accrual basis = $19500
Explanation:
The cash basis of accounting accounts for transactions that occured in cash in the period when cash changes hand. This means that transactions are recorded when the cash is paid or received rather than to the period to which they actually relate to.
Cash basis net income will be,
Net Income = 37000 - 20250 - 6750
Net Income - Cash basis = $10000
The accrual basis of accounting follows that the transactions should be recorded in the period to which they relate to rather then when the cash is paid out or received.
Accrual basis Net income will be,
Net Income - Accrual basis = 45000 - 25500
Net Income - Accrual basis = $19500
Feed the Hungry Children, a (fictitious) not-for-profit tax-exempt entity under IRC Sec. 501(c)3, has been in operation for six years. The mission of the group is to provide healthy breakfast meals to children in inner city schools, so they can best learn. A wealthy local philanthropist has been meeting with the organization hoping to change the direction of the organization in return for a $1,000,000 permanent endowment donated to the group. While these negotiations were taking place this year, the organization suspended its normal operations. The draft of the Form 990 for this fiscal year shows 0 revenues and 0 expenses for this fiscal year and penciled in is a $1,000,000 gift from the philanthropist. The treasurer of the Board is drafting the Schedule A for the Form 990 in preparation for reporting to the Board whether the organization's status has changed form a public charity to a private foundation. Go to the www.irs.gov website and obtain Form 990, Schedule A. In your own words, construct an argument to support why this tax-exempt entity is still a public charity.
Answers
Despite the suspension of normal operations and the potential $1,000,000 gift from a wealthy local philanthropist, there is still an argument to support that Feed the Hungry Children, the not-for-profit tax-exempt entity, remains a public charity.
1. Review the requirements for a public charity: According to IRC Sec. 501(c)3, a public charity must receive a substantial part of its support from public contributions and grants and be organized and operated for charitable purposes.
2. Examine the mission and purpose: Feed the Hungry Children's mission is to provide healthy breakfast meals to children in inner city schools, with the aim of helping them learn better. This aligns with a charitable purpose focused on improving the well-being of children and promoting education.
3. Consider the organization's history: Feed the Hungry Children has been in operation for six years, consistently providing healthy breakfast meals to children in need. Its long-standing commitment to charitable activities demonstrates a track record of serving the public interest.
4. Evaluate the potential gift: The $1,000,000 gift from the local philanthropist, although substantial, does not automatically change the organization's status from a public charity to a private foundation. The organization's eligibility is determined by its overall sources of support, not a single donation. If the gift does not significantly alter the public support test, Feed the Hungry Children can still maintain its public charity status.
5. Analyze the Form 990, Schedule A: The treasurer of the Board is preparing the Schedule A for the Form 990, which provides information about the organization's public support and support schedule. By reviewing this form, it will be possible to determine whether the organization's public charity status has changed or if it still meets the required criteria.
6. Document the argument: Compile the findings from the review, emphasizing the organization's charitable purpose, its history of serving the public, and the evaluation of the potential gift's impact on public support. Present these points in a well-structured and persuasive argument to support the conclusion that Feed the Hungry Children remains a public charity.
It is important to consult with legal or tax professionals for accurate and specific advice in interpreting tax laws and regulations related to the organization's status.
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You tell Julia, "There's always improvement to be made as we grow, beginning with me." She looks at you and smiles. You're not certain if her smile is genuine, but you know there are things you can do to improve your leadership skills as well as things you can do to equip the organization to run well as you develop those skills. What might you do to help your organization?
Answers
To help improve the organization, the leader can focus on developing their own leadership skills while also equipping the organization to run effectively.
This can be achieved by seeking feedback from employees, providing training and professional development opportunities, delegating responsibilities to trusted team members, and fostering a positive and collaborative work environment.
By seeking feedback from employees, the leader can identify areas for improvement and make necessary adjustments to their leadership style. Providing training and development opportunities can help employees grow in their roles and contribute to the success of the organization. Delegating responsibilities to trusted team members not only lightens the leader's workload, but also empowers employees and allows them to develop their own leadership skills. Finally, fostering a positive and collaborative work environment can boost morale and productivity, leading to greater success for the organization as a whole.
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Gordon, an employee, is provided group term life insurance coverage equal to twice his annual salary of $125,000 per year. According to the IRS Uniform Premium Table (based on Gordon's age), the amount is $12 per year for $1,000 of protection. The cost of an individual policy would be $15 per year for $1,000 of protection. Since Gordon paid nothing towards the cost of the $250,000 protection, he must include in his 2019 gross income which of the following amounts?
Answers
Answer:
1
Explanation:
1+1=2
erci
1. What do you mean by Foreign Employment Promotion Board? Write about
it.
Answers
The Foreign Employment Promotion Board (FEPB) aims to offer free technical training to the children of Nepali migrants who pass away, suffer severe accidents, or develop chronic illnesses.
The Foreign Employment Promotion Board (FEPB) offers migrants and their families welfare-related services such as skill development, orientation, returnee and integration, as well as compensation for accidents and fatalities that happen to migrants at their place of employment.
The foreign employment promotion board's duties include:
analysis of the new global labor market.Funding for overseas employment welfare.Work on an agreement with a different nation.conduct a variety of programs to help people get jobs abroad.To know more about Foreign Employment Promotion Board refer:
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Isabella and Antonio are auto mechanics. Isabella takes 6 hours to replace a clutch and 4 hours to replace a set of brakes. Antonio takes 8 hours to replace a clutch and 6 hours to replace a set of brakes. State whether anyone has an absolute advantage at either task and, for each task, identify who has a comparative advantage.
Answers
Isabella has an absolute advantage in both clutch replacement and brake replacement due to her ability to complete each task in less time.
- Isabella also has a comparative advantage in both clutch replacement and brake replacement, assuming similar skills and pay rates.
How to determine the whether anyone has an absolute advantage at either task and, for each taskTo determine absolute and comparative advantages in this scenario, we need to compare the productivity of Isabella and Antonio in replacing clutches and brakes.
Let's analyze the tasks:
1. Clutch Replacement:
- Isabella takes 6 hours.
- Antonio takes 8 hours.
Based on the time taken, Isabella has an absolute advantage in clutch replacement because she can complete the task in less time than Antonio.
2. Brake Replacement:
- Isabella takes 4 hours.
- Antonio takes 6 hours.
Again, based on the time taken, Isabella has an absolute advantage in brake replacement because she can complete the task in less time than Antonio.
Similar to clutch replacement, if we assume similar skills and pay rates, Isabella would also have a comparative advantage in brake replacement due to her ability to complete the task more quickly.
Comparative advantage is based on a comparison of opportunity costs, and without specific information about the trade-offs involved, we can infer that Isabella's ability to complete both tasks more quickly gives her a comparative advantage in both.
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Please help ASAP!
Lisa is thinking about a career in Hospitality and Tourism. She has always wanted to run a small bed and breakfast. What area might have just the right economy for Lisa?
A. a concentrated manufacturing district
B. a farming community with chicken houses everywhere
C. a small town close to the beach
D. a cold, icy community in a rural area
Answers
Answer:
C
Explanation:
Answer:
C. a small town close to the beach
Explanation:
20: What are some ways you can stay financially literate?
Answers
from the video "the best stats you've ever seen "
what are some of the variables that rosling's graphs analyze? why are these factors important?
Answers
Answer:
michael jackson it about life
Explanation:
What could the owner of a movie theater expect as the possible result from an increase in movie ticket prices?
A The demand will increase.
.
O B. The quantity demanded will decreases
OC The supply will decrease
D. The quantity supplied will decrease.
Answers
Answer:
C
Explanation:
Fewer Movie goers will pay a hier price
The supply will decrease could the owner of a movie theatre except as the possible result from an increase in movie ticket prices. Hence, option C is correct.
What is meant by movie ticket prices?
A ticket is a compact, official document or card that serves as proof that you have paid for admission to a venue such as a theatre or sporting event.
The cost of seeing a movie on average every year at the box office is known as the average ticket price. According to the UNESCO Institute for Statistics, the ATP is "calculated as the total earnings from ticket sales divided by the number of feature film tickets sold during the year of reference."
In movie theaters, there are senior discounts and matinee discounts, but there aren't different prices for various films playing at the same time.
Thus, option C is correct.
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Determine whether each of the following topics would more likely be studied in microeconomics or macroeconomics.
Microeconomics Macroeconomics
1. The optimal interest rate for the Federal Reserve to target
2. A consumer's optimal choice when buying a flat-screen TV
3. The effect of government regulation on a monopolist's production decisions
4. The government's decision on how much to spend on public projects
Answers
Answer:
Macroeconomics
Microeconomics
Microeconomics
Macroeconomics
Explanation:
Macroeconomics is a branch of economics that studies the economy as a whole. Macroeconomics studies economic aggregates such as inflation, unemployment, GDP and growth rate.
Microeconomics is a branch of economics that studies the decisions individuals and firms make in response to changes in economic factors. These factors include price, resources etc. it studies how firms and individuals allocate and make decisions about resources
By comparing prices at different stores, consumers will:
Answers
By comparing prices at different stores, consumers will save money and make informed purchasing decisions.
How can comparing prices at different stores benefit consumers?Comparing prices at different stores allows consumers to make informed purchasing decisions and save money. By taking the time to research and compare prices, consumers can identify the best deals and discounts available for the products they intend to buy.
This practice helps them ensure that they are getting the most value for their money. It can also help consumers uncover any price discrepancies or inflated prices allowing them to avoid overpaying for goods and services.
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A food worker is serving a peanut free meal to a food allergic customer what should the food worker to do prevent cross contact
Answers
From the text, the food worker is encouraged to Wash their hands, and mouth to prevent a cross-contact.
What is a Cross-contact?
Cross-contact is a process of mixing one individual or element with another. Cross-contact happens when one food comes into contact with another food and their proteins mix.
To prevent cross-contact of the food worker's elements with the customer's food, the food worker is encouraged to always wash his or her hands and mouth.
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Suppose the following describes the economy (all figures in billions)
Business Profits (PR)........... $200
Compensation ………… 3244.20
Corporate profits ...........297.10
Deprecation.................. 575.70
Depreciation .....................$36
Government Purchases........ $156
Gross Private Investment...... $124
Household Consumption...... $304
Indirect business taxes.......469.90
Indirect Business Taxes.......... $74
Interest Income (i)............. $150
Net Exports......................... $18
Net Foreign Factor Income..... $12
Net interest.................... 467.10
Proprietor‘s income.......... 402.40
Rental Income (R)............. $75
Rental income of persons...... 6.70
Transfer Payments............... $54
Wages (W)......................... $67
a. What is the value of net domestic product/income at factor cost?
b. What is the value of GDP at market price?
c. Find GDP using expenditure approach
d. Find GDP using income approach
e. Compare the GDP values obtained using income and expenditure approaches.
Answers
A. The value of net domestic product/income at factor cost is $7,278.20.
b. The value of GDP at market price is $7,877.20.
What is net domestic product?Net Domestic Product (NDP) is the total value of all goods and services produced within a country’s boundaries during a specific period of time, usually one year. It is calculated by adding the gross domestic product (GDP) of the country to its net foreign factor income.
c. The GDP using expenditure approach is as follows: Household Consumption: $304, Government Purchases: $156, Gross Private Investment: $124, Net Exports: $18, Total Expenditure: $602.
d. The GDP using income approach is as follows: Business Profits: $200, Compensation: $3,244.20, Corporate Profits: $297.10, Depreciation: $575.70, Indirect Business Taxes: $469.90, Interest Income: $150, Net Foreign Factor Income: $12, Proprietor’s Income: $402.40, Rental Income: $75, Transfer Payments: $54, Wages: $67, Total Income: $7,278.20.
e. The GDP values obtained using income and expenditure approaches are different due to the fact that the expenditure.
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Once a company determines ____ they will know how many products or
service they will need to sell in order to make a profit
A. contribution margin
B. breakeven sales volume
C. variable cost per unit
D. number of units sold
Answers
Once a company determines contribution margin they will know how many products or service they will need to sell in order to make a profit. Any excess income left in the wake of taking care of fixed costs is the benefit produced. Option(A) is correct.
What does Contribution Margin means?
The Contribution margin can be expressed on a gross or per-unit premise. It addresses the gradual cash created for every item/unit sold subsequent to deducting the variable part of the company's expenses.
The contribution margin is registered as the selling cost per unit, less the variable expense per unit. Otherwise called dollar contribution per unit, the action shows how a specific item adds to the general benefit of the organization.
It gives one method for showing the benefit capability of a specific item presented by an organization and shows the part of deals that assists with taking care of the organization's decent expenses.
Therefore Option(A) is correct.
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What words go into what boxes ?
Answers
The aggregate supply/demand model illustrates the macroeconomic interactions between total supply and total demand as well as the factors that influence either total supply or total demand for the economy.
What results from the supply and demand model?A model that demonstrates how total supply and total demand interact at the macroeconomic level is the aggregate demand/aggregate supply model, which also explains how total supply and total demand are determined for the economy. In other words, the real GDP, aggregate supply is the total amount of output that businesses will generate and sell.
A supply and demand graph can be explained in what ways?The supply curve moves right as the amount of the good that is available grows. The supply curve shifts left if the quantity falls. A line with a downward and rightward-pointing slope, representing the demand curve, is shown on a graph. The demand curve shifts to the right and slopes downward as the quantity demanded rises.
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A survey found that 76% of men preferred darker jeans. if 500 men were sureveyed, how many answered that they preferred darker jeans
Answers
Answer: 380 men preferred darker jeans
Explanation:
76% of 500 is 380
what is your analysis on walmart financial health as of january 2021 compare to 2022
Answers
I think the analysis is good compared to the year of 2021
Create a simple symbol to help explain each of the three types of loans that banks commonly
make: commercial loans, consumer loans, and mortgage loans. Write one or two sentences
explaining who would typically take our each type of loan and what the money would be used
for.
Answers
Borrowing cards are a type of unsecured revolving credit with higher interest rates. Commercial loans with terms of one to three years. Commercial loans with a longer term are typically secured by real estate or other large assets.
What is commercial loans?A commercial loan is arranged between a bank and a company and is used to pay for both operating expenses and capital investments. Collateral, such as real estate or machinery, is often required for commercial loans. Financial statements are typically required from businesses to demonstrate their capacity to pay.
Simply enough, "commercial" is another synonym for "business." Therefore, as opposed to a consumer loan, a commercial loan is only a business loan. A business loan might be used, for instance, to purchase both the building and a restaurant.
An mortgage loan used to buy, refinance, or repair a business property is known as a commercial real estate (CRE) loan. Numerous traditional and internet lenders offer CRE loans with slightly variable terms, fees, and eligibility requirements.
Loans that aren't typically managed by the real estate or consumer loan departments are referred to as "commercial loans" in common parlance. Commercial or business loans are typically one of a national bank's most significant assets when it comes to asset distribution.
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Use the midpoint method to calculate the price elasticity of demand for potato chips that increased in price from $2.00 to $3.00. The quantity demanded decreased from 100 bags a week to 50 bags a week at the local grocery store. Round to one decimal place.
Answers
The price elasticity of demand for potato chips is - 1.67.
How elastic is demand in relation to prices?The relationship between the percentage change in a product's quantity demanded and the percentage change in price is known as price elasticity of demand. It helps economists comprehend how supply and demand shift in response to changes in a product's price.
The following is a formula for price elasticity of demand using the midpoint method:
Price elasticity of demand = \(\frac{{(Q_{2} - Q_{1}) / (Q_{2} + Q_{1} ) / 2}}{ {(P_{2} - P_{1} ) / ( P_{2} + P_{1}) /2 }}\)
Where,
The quantities before and after price increases are \(Q_{1}\) and \(Q_{2}\), respectively;
Initial price is \(P_{1}\), and new price is \(P_{2}\).
When you add up all the numbers, you get:
Price elasticity of demand = \(\frac{{(50 - 100) / (50 + 100 ) / 2}}{ {(3 - 2 ) / ( 3 + 2) /2 }}\) = - 1.67
Negative signs suggest that volume will decline as prices rise.
Learn more about Price elasticity of demand: https://brainly.com/question/15313354
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