Answer: Grid Corp. acquired some of its own common shares at a price greater than both their par value and original issue price but less than their book value. This will impact his total equity and the book value per common share.
i.e. In this particular case Equity will decrease and book value per share will increase.
Acquiring its own common shares at a price greater than par value and original issue price but less than book value has an impact on total equity and treasury stock. However, it does not affect the book value per common share.
Explanation:When a company acquires its own common shares at a price greater than their par value and original issue price but less than their book value, it is referred to as treasury stock. The acquisition of treasury stock has two effects on total equity: a decrease in total equity and an increase in treasury stock. However, the book value per common share remains unaffected because the book value per common share is calculated by dividing total equity by the number of outstanding common shares, and both total equity and the number of outstanding common shares decrease proportionally due to the acquisition of treasury stock.
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Economic stability is defined as the condition in which there is
Answer: gays
Explanation:
When employees at all occupational levels are asked to rank what is important to them, the order that put them in is: sufficient help, support, and information to accomplish the job; interesting work; enough authority to carry out the work,and good pay good pay; enough authority to carry out the work; sufficient help, support, and information; and interesting work. interesting work; sufficient help, support, and information to accomplish the job; enough authority to carry out the work; and good pay enough authority to carry out the work; good pay; interesting work; and sufficient help, support, and information to accomplish the job
Job satisfaction is influenced by various factors such as sufficient organizational support, interesting work, autonomy, and good pay. The order of these factors may vary depending on several aspects, however, interesting work is often ranked highly as it promotes engagement and motivation.
Explanation:The question pertains to the prioritized aspects of job satisfaction across diverse occupational levels. Various fields of study have concluded that certain job factors significantly impact employees' satisfaction, motivation, and productivity. These are: sufficient help, support, and information to accomplish the job; interesting work; enough authority to carry out the work; and good pay. The order of significance may vary depending upon the occupation, the environment, individual preferences, or cultural aspects. Empirical findings suggest that interesting work is often ranked a high priority among all workers because it promotes employee engagement and motivation. Conversely, good pay is crucial, but it alone is insufficient for higher job satisfaction or retention.
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Leiff goes online to buy a new video game. He finds a site that currently has a promotion of 15% off on all orders over $50. Leiff decides to buy his video game, with a price tag of $128, at this site because he knows that he will get the 15% discount when he checks out. Leiff pays 5.3% sales tax on the discounted price and pays a shipping fee of $4.75. What is the total of Leiff’s online purchase?
a. $112.84
b. $114.57
c. $118.82
d. $119.32
ANSWER:
d.$119.32
STEP-BY-STEP EXPLANATION:
Leiff goes online to buy a new video game. He finds a site that currently has a promotion of 15% off on all orders over $50. Leiff decides to buy his video game, with a price tag of $128, at this site because he knows that he will get the 15% discount when he checks out. Leiff pays 5.3% sales tax on the discounted price and pays a shipping fee of $4.75.
original price is $128,
to get its discounted price at 15%
Leiff paid for was (100-15) = 85% of the original price
the price of the video game then becomes (0.85 x 128) = $108.80
Leiff has to pay an additional 5.3% of the new price, that's (100 + 5.3) = 105.3% of the new price
which is (1.053 x 108.8) = $114.57
Adding the shipping fee for the videogame, 114.57 + 4.75 = $119.32
Thus, the total price is $119.32
Assume the City of Tulsa, Oklahoma issued bonds 3 years ago as follows: 8.75% $150 million at 8.75%. The original maturity was 25 years, par value is $1,000, with interest paid annually. The original credit rating was A1/A+ by Moody's and S&P, respectively. If the rating agencies downgrade the credit ratings to A3/A-, investors will want a 9.10% return. What would happen to the price per bond if that happens today? (6 decimal places).
Answer:
The bond will decrease by:
$27.019642
Their market value will be:
$972.980358
Explanation:
The price of the bond will decrease in order to increase the yield of the bond to 9.10%
We will calculate the present value of the annuity using the 9.10 rate compounding semiannually
[tex]C \times \frac{1-(1+r/2)^{-timex2} }{rate/2} = PV\\[/tex]
c= 1000 x 8.75%/2 = 1000 x 0.0875/2 = 43.75
time = 25 years - 3 = 22 years
rate 9.10% = 0.091
[tex]4375 \times \frac{1-(1+0.091/2)^{-22\times2} }{0.091/2} = PV\\[/tex]
PV = 825.798092
Then we calculate the present value of the redem of the bond:
[tex]\frac{Principal}{(1 + rate)^{time} } = PV[/tex]
Face value = 1,000
rate = 0.091
time = 22
[tex]\frac{1,000}{(1 + 0.91)^{22} } = PV[/tex]
PV = 147,182266
We add both to get the current PV at the new yield to maturity
825.798092 + 147,182266 = 972.980358
1000 - 972.980358 = ↓27.019642
Maso Company recorded journal entries for the issuance of common stock for $160,000, the payment of $52,000 on accounts payable, and the payment of salaries expense of $84,000. What net effect do these entries have on owners' equity?
Answer:
The correct answer is that the owners equity would increase by $76,000.
Explanation:
here we have been given 3 entries and in these three journal entries , the payment of $52,000 on account payable is a entry which will have no effect on the owners equity, so only issuance of stock which increase the owners equity and payment of salary expenses which decreases the owners equity will have a impact on its total equity.
The total impact on owners equity -
ISSUANCE OF COMMON STOCK = $160,000
(-) PAYMENT OF SALARY = $84,000
net effect on owners equity which is here increase in the total equity by $76,000.
For the budget period ending December 31, 2015, Aaron Corporation estimates its ending balances for cash as $4,000, accounts receivable as $16,000, finished goods inventory as $12,000, and raw materials inventory as $8,000. Raw materials worth $14,000 will be unpaid. Determine the amount of total current assets that will be reported on the budgeted balance sheet.
A. $40,000
B. $20,000
C. $32,000
D. $26,000
Answer:
$40,000
Explanation:
Current assets are liquid assets which can easily be converted into cash within a year and examples are cash, cash equivalents, debtors or account receivables, and inventory ( raw materials, work in progress and finished goods). In this question, we exclude the unpaid raw materials of $14,000 as they are not a current asset but are a current liability.
Therefore: Current assets are Cash balance plus accounts receivable plus finished goods inventory plus raw materials inventory = $4,000 + $16,000 + $12,000 + $8,000 = $40,000
Which of the following is not a benefit of using a computerized budgeting system? A. Such systems speed up and reduce the cost of preparing the budget. B. Such systems make revisions easier with faster results. C. Such systems can streamline the budgeting process. D. Such systems require more employees to be involved in the process.
Answer:
Computaried budgeting systems help companies in the budgeting process, which is used to easily put together finantial statements in order to gauge future operations for the company since they process the budget very fast, reducing the amount of resources employed by the company in such tasks.
Thus the option which is Not a benefit would be (D.).
Explanation:
Which of the following best explain why the pain of losing $1,000 exceeds the pleasure of winning $1,000 for risk-averse people? Check all that apply. a. The more wealth that risk-averse people have, the more satisfaction they receive from an additional dollar. b. The more wealth that risk-averse people have, the less satisfaction they receive from an additional dollar. c. Risk-averse people are relatively poor and cannot afford to lose any money. d. Risk-averse people overestimate the probability of losing money.
Answer:
a,c,d
Explanation:
step by step solution
a, c and d best explain why the pain of losing $1,000 exceeds the pleasure of winning $1,000 for risk-averse people.
a. The more wealth that risk-averse people have, the more satisfaction they receive from an additional dollar.
c. Risk-averse people are relatively poor and cannot afford to lose any money.
d. Risk-averse people overestimate the probability of losing money.
What do you mean by risk averse people?A person who invests their money in a bank account with a low but guaranteed interest rate rather than buying stocks, which can fluctuate in price but have the potential to generate considerably larger returns, is an example of risk-averse behavior.
The Big Five personality qualities include extroversion, agreeableness, openness, conscientiousness, and neuroticism. On the plus side, according to Dr. Maier, persons who are risk-averse also tend to be more agreeable and more conscientious.
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Juan, the owner of Quality Catering, is driven by competition. He is very focused on meeting deadlines and quality, and on delivering the results that customers want. He pushes his managers to continually exceed their productivity goals, and he stresses that profits take precedence over employee development and satisfaction. Juan feels "there is not enough time for training." However, his employees are regularly rewarded for their success in meeting company goals. Quality Catering has a(n) ____ culture.
A.) adhocracy
B.) clan
C.) hierarchy
D.) target-driven
E.) market
Answer: His employees are regularly rewarded for their success in meeting company goals. Quality Catering has a market culture.
Market culture is a type of organizational culture which accentuate on the aggressiveness not only within the administration and market contender but also between worker. The model is assertive, competitive and capitalistic.
Mint Co.'s cash balance in its balance sheet is $1,300,000, of which $300,000 is identified as a compensating balance. Additionally, Mint has classified cash of $250,000 that has been restricted for future expansion plans as "other assets." Which of the following should Mint disclose in notes to its financial statements?Compensating | Restricted | Balance | Cash |A. No | YesB. Yes | YesC. No | NoD. Yes | No
Answer:
Correct option is B Yes and Yes
Yes - Compensating shall be reported, And Restricted shall also be reported.
Explanation:
Compensating balance is the minimum balance to be maintained in the company's bank account as this is used by bank for offsetting loan, and used by company to set up the loan amount.
Restricted balance is a choice made by the company to not use the funds and use it later for company's growth or future projected, but still since it cannot be used it shall also be reported accordingly.
Therefore the company has the need to report such restricted balance also and compensating balance has to be reported as well.
Therefore correct option is B
Yes - Compensating shall be reported, And Restricted shall also be reported.
Suppose a small economy has two income tax rates: 15% for all income up to $50,000 and 30% for any income earned above $50,000. Suppose that prior to the recession, the economy had five workers earning the following salaries: Amy: $20,000 Betty: $40,000 Charlie: $60,000 Dimitry: $80,000 Evelyn: $100,000 The total tax revenue paid by the five workers is _____, and it represents _____ percent of total income. a. $180,000; 18% b. $48,000; 25% c. $98,000; 32.3% d. $58,500; 19.5%
Answer: (a) 58500 and (b) 19.5%
Explanation:
Five workers salaries are as follows:
Amy: $20,000
Betty: $40,000
Charlie: $60,000
Dimitry: $80,000
Evelyn: $100,000
As given in the question that there are different tax slabs for different income level.
slab 1 - 15% for all income up to $50,000
slab 2 - 30% for any income earned above $50,000
Hence,
Tax paid by Amy = 20000 × 15% = $3000
Tax paid by Betty = 40000 × 15% = $6000
Tax paid by charlie = 50000 × 15% + 10000 × 30% = $10500
Tax paid by Dimitry = 50000 × 15% + 30000 × 30% = $16500
Tax paid by Evelyn = 50000 × 15% + 50000 × 30%= $22500
∴ Total tax revenue paid by the five workers = 3000+6000+10500+16500+22500
= 58,500
Tax revenue as percent of total income = [tex]\frac{Total\ tax\ revenue}{Total\ income} \times100[/tex]
= [tex]\frac{58500}{300000} \times100[/tex]
= 19.5%
The total tax revenue paid by the five workers is $58,500, representing 19.5% of total income.
Explanation:To calculate the total tax revenue paid by the five workers, we need to determine the amount of income subject to each tax rate and then calculate the tax owed for each worker.
Amy earns $20,000, which is below the $50,000 threshold. Therefore, her income is subject to the 15% tax rate. She owes $20,000 * 0.15 = $3,000 in taxes.Betty earns $40,000, which is also below the $50,000 threshold. Therefore, her income is subject to the 15% tax rate. She owes $40,000 * 0.15 = $6,000 in taxes.Charlie earns $60,000, which is above the $50,000 threshold. The first $50,000 of his income is subject to the 15% tax rate, so he owes $50,000 * 0.15 = $7,500. The remaining $10,000 of his income is subject to the 30% tax rate, so he owes $10,000 * 0.30 = $3,000. In total, Charlie owes $7,500 + $3,000 = $10,500 in taxes.Dimitry earns $80,000, which is above the $50,000 threshold. He owes $50,000 * 0.15 = $7,500 for the first portion of his income and $30,000 * 0.30 = $9,000 for the remaining portion of his income. In total, Dimitry owes $7,500 + $9,000 = $16,500 in taxes.Evelyn earns $100,000, which is above the $50,000 threshold. She owes $50,000 * 0.15 = $7,500 for the first portion of her income and $50,000 * 0.30 = $15,000 for the remaining portion of her income. In total, Evelyn owes $7,500 + $15,000 = $22,500 in taxes.Therefore, the total tax revenue paid by the five workers is $3,000 + $6,000 + $10,500 + $16,500 + $22,500 = $58,500.
To determine the percentage of total income that the total tax revenue represents, we sum up the incomes of the five workers: $20,000 + $40,000 + $60,000 + $80,000 + $100,000 = $300,000.
The total tax revenue of $58,500 divided by the total income of $300,000 gives us a percentage of 19.5%.
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The journal entry to record direct labor for Department A and Department B would include a. a decrease to Work in Process for each department individually. b. a decrease to Work in Process for both departments summed together. c. a decrease to Wages Payable. d. None of these choices are correct.
Answer:
The journal entry to record direct labor for Department A and Department B would include None of these choices are correct.- d.
Final answer:
The journal entry for recording direct labor in different departments includes an increase to Work in Process for each department individually, with a corresponding increase in Wages Payable or Cash.
Explanation:
The correct answer to the student's question is that the journal entry to record direct labor for Department A and Department B would include an increase to Work in Process for each department individually. Recording direct labor involves allocating the labor costs incurred to the respective departments where the labor was used, and these costs are added to the Work in Process accounts for each department. The Work in Process account represents the costs of incomplete products, and when labor is expended in making these products, the cost needs to be accounted for in this account. Therefore, the journal entry would result in a debit to the Work in Process accounts for each department and a credit to Wages Payable or Cash, depending on whether the labor has been paid for at the time of recording. The correct choice is 'None of these choices are correct' because there is no decrease to Work in Process; rather, there's an increase.
Dominic is the owner of Della Robotics, a business that deals in industrial robots that are mostly sold to the manufacturing industry. The strong point of Dominic's business is that he personally contacts his buyers and takes part in the negotiation process. Moreover, his company customizes the robots. In this scenario, the product manufactured by Della Robotics falls under the category of _____.
Answer:
The product manufactured by Della robotics falls under the category of installation.
Explanation:
Installation is defined as a process through which a machine or a software or any hardware ( industrial robots in this case ) is made ready to be used by the consumer. In this question also, Dominic ( the owner of Delta robotics ) is trying to do same thing as his company is making customized products for their customer , so that they can give best quality of products to their customers according to their needs and by contacting the buyer personally Dominic is trying to offer best service.
The product manufactured by Della robotics falls under the category of installation.
Further explanation:
Installation: Installation process is majorly undertaken for machines and equipments which cannot be used directly. The process of installation includes the process of making any machine or tool ready to be used by the consumer. The company is dealing with making customized products. The robots are mainly sold to the manufacturing industry. The company has an edge as it directly contacts the buyer, and the negotiation is made directly.
The company has targeted the quality of service in order to provide the customer with the required level of service and quality. The company charges all the charges up to installation in the cost of the product itself. It is delivering a complete product instead of only components or accessories. The company is focusing on complete product management via delivering the best technology to the customer. It will help in boosting the revenue of the organization as the product is being designed as per the specific needs of the customers.
The major customer of the company is the manufacturing industry. Installation process helps in making the robots ready for service, thereby reducing the idle time. The effectiveness of the robots is increased when these are being installed by their manufacturing company itself.
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Answer details
Grade: Middle School
Subject: Cost Accounting
Chapter: Product development
Keywords: Dominic, Della Robotics, is the owner of, business that deals in industrial robots, Dominic’s business, personally contacts his buyers, negotiation process, customizes the robots, industrial robots, falls under the category of, in this scenario, mostly sold to the, cost accounting, designing product, product development, making product, robotic technology, installation, operating and maintenance, installation expenses, customized robots.
Which of these assumptions is often realistic for a firm in the short run? a. The firm can vary both the size of its factory and the number of workers it employs. b. The firm can vary the size of its factory but not the number of workers it employs. c. The firm can vary the number of workers it employs but not the size of its factory. d. The firm can vary neither the size of its factory nor the number of workers it employs.
Answer:
The correct option here is C) the number of workers can be varied but not size of factory.
Explanation:
In the short run it would not be possible to shift or vary the size of factory and even if they try doing that it will talk lot of time and cost , which is in no way beneficial for the firm. But what firm can do is vary the number of workers they employ, like if they want to take advantage of economies of scale , they can do that by assigning less tasks to employees and for that they can make changes in the number of employees as per the requirement.
Final answer:
The most realistic assumption for a firm in the short run is that it can vary the number of workers it employs but not the size of its factory, since fixed inputs cannot be changed over this period.
Explanation:
The question revolves around realistic assumptions for a firm's capacity to adjust inputs in the short run. In economic terms, the short run is a timeframe during which certain inputs are fixed. Consequently, to the question 'Which of these assumptions is often realistic for a firm in the short run?' the most accurate answer is: c. The firm can vary the number of workers it employs but not the size of its factory. This premise aligns with economic theory which postulates that in the short run, a firm can typically adjust its level of variable inputs like labor, but not fixed inputs such as factory size or capital equipment.
Understanding the distinction between the short run and the long run is critical. In the short run, firms cannot change the usage of fixed inputs, while in the long run, adjustments to all factors of production are possible. Reflecting on the concepts of total product and marginal product also offers insight into labor's impact on production before diminishing marginal productivity becomes a factor.
Is it better for bondholders when the yield to maturity increases or decreases? Bondholders are better off when the yield to maturity: A. decreases, since this represents an increase in the price of the bond and a decrease in potential capital losses. B. increases, since this represents a decrease in the price of the bond and an increase in potential capital gains. C. decreases, since this represents an increase in the coupon payment and an increase in potential capital gains. D. increases, since this represents a decrease in the bond maturity and a decrease in potential capital losses.
Answer: Bondholders are better off when the yield to maturity: decreases, since this represents an increase in the price of the bond and a decrease in potential capital losses.
Here, the relation is inversely proportional between bondholders welfare and his/her yield to maturity.
Final answer:
Bondholders are better off when the yield to maturity decreases, as this indicates an increase in the price of the bond and a decrease in potential capital losses. The correct option is a.
Explanation:
The question of whether bondholders are better off when the yield to maturity increases or decreases involves understanding the relationship between bond prices, yields, and interest rates. When the yield to maturity on a bond decreases, this generally indicates that the bond's price has increased. This price increase can be due to a drop in market interest rates, which makes the fixed coupon payments of the bond more attractive relative to the new lower rates available in the market. Hence, a decrease in yield to maturity represents an increase in the price of the bond and reduces potential capital losses because the bondholder could sell the bond for a higher price than the purchase price.
Therefore, the correct answer is: A. decreases, since this represents an increase in the price of the bond and a decrease in potential capital losses. The rationale behind this is that bond prices and yields are inversely related, which means as demand for a bond increases due to its relatively higher interest payment in comparison to new bonds issued at the current lower rates, its price goes up, and hence, its yield goes down.
Anchor Co. owns 40% of Main Co.’s common stock outstanding and 75% of Main’s noncumulative preferred stock outstanding. Anchor exercises significant influence over Main’s operations. During the current period, Main declared dividends of $200,000 on its common stock and $100,000 on its noncumulative preferred stock. What amount of dividend income should Anchor report on its income statement for the current period related to its investment in Main?
A. 75,000
B. 80,000
C. 200,000
D. 225,000
Answer:
A. 75,000
Explanation:
Where an investment is made of 20% or more and there is significance influence then equity method is followed under which if any dividend is received for common stock it is adjusted from value of common stock.
Here common stock holding = 40% with significant influence.
Therefore dividend share = $200,000 X 40% = $80,000
This value of dividend will be deducted from the carrying value of investment.
Further any shares of preferred stock is not treated in the same way, and dividend is not deducted from cost of shares or carrying value of the same, it is shown as part of income statement.
Dividend to form part of income statement = $100,000 X 75% = $75,000
This question involves calculating dividend income related to an investment in a company, with the correct answer being $80,000. So, option B is correct.
This question pertains to accounting and specifically involves the calculation of dividend income related to an investment in a company. In this scenario, Anchor Co. owns a percentage of Main Co.’s common stock and preferred stock, requiring the calculation of the dividend income Anchor should report.
To determine the dividend income, we need to consider the dividends declared on Main Co.’s common stock and preferred stock that Anchor owns stakes in. Anchors' portion of the dividend income would be 40% of the common stock dividends plus 75% of the preferred stock dividends.
Therefore, the correct amount of dividend income to be reported by Anchor on its income statement for the current period related to its investment in Main is $80,000 (B).
Last month, a Vivian’s Fabrication Department started 82,000 units into production. The department had no beginning work in process and 18,100 units of ending work in process that were 50% complete. The department incurs conversion costs uniformly throughout the process and all materials are issued at the beginning of the process. If the department’s total materials cost for the month was $504,300, what was the unit materials cost?
Answer:
Unit Materials cost $6.15
Explanation:
Beginning 0
Started 82,000
Ending (18,100)
Complete and transferred out 63,900
To get equivalent untis we add the transferred out with the equivalent units of Ending inventory
CC 63,900 + 18,100 x 50% = 72,950
Materials 63,900 + 18,100 x 100% = 82,000
Unit material cost:
504,300/82,000 = 6.15
+Ending materials 18,100
One eoc function is to provide coordinated support to incident command. True or False
Answer:
One eoc function is to provide coordinated support to incident command. - True ( first choice)
Bon Nebo Co. sold 25,000 annual subscriptions of Magazine 2018 for $85 during December 2018. These new subscribers will receive monthly issues, beginning in January 2019. In addition, the business had taxable income of $840,000 during the first calendar quarter of 2019. The federal tax rate is 40%. A quarterly tax payment will be made on April 12, 2019. Prepare the Current Liabilities section of the balance sheet for Bon Nebo Co. on March 31, 20Y9.
Answer:
Current liabilities
2,125,000 unarned revenue
336,000 tax payable
2,461,000 total current liability
Explanation:
taxable income x tax-rate = tax payable
840,000 x .4 = 336,000
subscription x value = unearned revenue
25,000 x 85 = 2,125,000 unearned revenue
This amount will decrease over time, as the customers receive their magazines.
Current liabilities
2,125,000 unarned revenue
336,000 tax payable
2,461,000 total current liability
_______ are people who take it upon themselves to handle the pain and stressors that are part of everyday life in organizations. Stress handlers Dystress handlers Eustress handlers Scapegoats Toxin handlers
Answer:
The correct option here is toxin handlers.
Explanation:
Toxin handler can be anyone in the organization like a manager, employee or anyone else, they can be founded in any or might be at every level of an organization , these are the people who will listen to an person( he/she can be anyone ) when they burst in the workplace with anger and frustration, these toxin handlers will not only listen but also give advice to that person or help them in solving their problems. Toxin handlers will help others by easing their pain, without even any knowledge to the person who is suffering, they will also help others in getting their confidence back.
The term 'Toxin handlers' refers to individuals who manage stress and pressure amidst heavy workload and job control scenarios within organizations. These individuals are integral to an organization, as they help absorb and manage stress, ultimately promoting a healthier work environment. This eases job strain and can help prevent job burnout.
Explanation:The individuals who are adept at managing the pressures and stressors in an organizational setting are known as Toxin handlers. Stress, which can be seen as the perception and response to events regarded as overwhelming, arises from various occupational stressors like a heavy workload and insufficient job control. The role of toxin handlers is critical in these situations as they help to absorb this anxiety and tension, creating a healthier work environment.
Organizations often have certain roles that are subject to a high degree of stress due to the nature of their work, like postal clerks, supermarket cashiers, or taxi drivers. Such roles frequently involve a high workload coupled with low control formalities, which contribute to job strain. Job strain can lead to chronic occupational stress, linking to job dissatisfaction and job burnout, which is a sense of emotional exhaustion and cynicism towards the job.
Despite this, certain individuals excel in navigating and effectively managing these stress factors. These are the people we refer to as toxin handlers. They are usually at various levels in an organization, where they help manage, absorb, or counter the effects of stressors to maintain balance in the organizational environment.
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Alpha Colony and Beta Colony both manufacture textiles and technology. Alpha Colony always produces higher quality textiles and technology with fewer raw materials and in less time than Beta Colony. Which statement would explain the reason why Alpha Colony has an advantage over Beta Colony?
Answer: Alpha Colony has an absolute advantage because it has better production methods and more productive workers.
Explanation:
According to International trade theory, the fact that the Alpha Colony has an absolute advantage over Beta Colony doesn't mean that trade can't exist between.
What is the term for the total number of units that are purchased at that price?
Answer: Quantity demand
Explanation:
Quantity demand is known to be the amount of goods and services which a consumer desire to purchase and pay for at a specified period of time. A consumer must be willing to buy a product during the time it is needed at a price which he or she can pay for it in the market. Thus, as the price of a good rises, consumer will purchase less and as the price of a good falls, consumer will purchase more of the good.
Advanced Printing Systems is a firm in a monopolistically competitive market. If its marginal cost is $18 per unit in the short run, if it is maximizing profits, and if it is selling at the equilibrium quantity, what is its marginal revenue?
Answer: Marginal Revenue = $18 per unit
Explanation:
The profit maximizing condition for a firm in a monopolistic competitive market is at MR = MC.
So, the marginal revenue of the firm is equal to the marginal cost of the firm.
In this question, the firm's marginal cost is $18 per unit in the short run and it is a profit maximizing firm. Thus, its marginal revenue is $18 per unit.
Which of the following should a financial manager consider when analyzing a capital budgeting project? I. Project start-up costs. II. Timing of all projected cash flows. III. Dependability of future cash flows. IV. Dollar amount of each projected cash flow. A. I, II, and III only B. II, III, and IV only C. I, II, and IV only D. I, II, III, and IV E. I and IV only
Answer:
Correct option is D. I, II, III, and IV
Explanation:
Whenever a financial manager is to analyse a capital budgeting project, then the following is to be considered:
Start up costs - As this is the initial cash outlay the company has to make for starting the project.
Timing of projected cash flows - This is important to consider as most of the methods IRR, or NPV or discounted payback period considers the time period of cash flows for discounting them.
Dependability of future cash flows - This s important as with respect to probability of occurrence of such cash flows.
Dollar amount of each cash flow - This is considered as this is the value to be discounted or to be considered as it is without discount.
Therefore correct option is D. I, II, III, and IV
The more elastic the supply and the demand curves are: A. the greater shortage an effective price ceiling will create. B. the smaller surplus an effective price ceiling will create. C. the greater surplus an effective price ceiling will create. D. the smaller shortage an effective price ceiling will create.
Answer:
A. the greater shortage an effective price ceiling will create.
Explanation:
Supply / demand price elasticity measures the sensitivity of supply / demand to changes in the price of the good. Thus, if supply / demand for the good is elastic, it is assumed that slight price changes will drastically affect supply / demand for the good. This means that price changes will cause supply / demand shortages for the good, so that a ceiling price will be set so that demand / supply for the good will be maintained.
A price ceiling is a legal maximum price set below the equilibrium price. The more elastic the supply and demand curves are, the greater the shortage an effective price ceiling will create.
Explanation:A price ceiling is a legal maximum price set below the equilibrium price. When a price ceiling is below the equilibrium price, it creates a shortage because the quantity demanded exceeds the quantity supplied. The more elastic the supply and demand curves are, the greater the shortage an effective price ceiling will create.
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A tire manufacturer produces 400 tires valued at $20 each. Three hundred tires are sold to a tire shop, which then sells them to households for $50 each. The remaining tires are unsold and are added to the tire manufacturer’s inventory. How much is added to GDP? a. $8,000 b. $15,000 c. $13,000 d. $17,000
Answer:
The amount of $15,000 will be added to the GDP.
Explanation:
GDP or gross domestic product can be described as the measure of all final goods and services produced in the geographical boundaries of a nation in a given period, often in a year.
Since, in the calculation of GDP only final goods and services are included,
So, the GDP will increase by total value of final goods produced
Total value of final goods
=Price*quantity of goods
=$50*300
= $15000
Corn chips and potato chips are substitutes. Good weather that sharply increases the corn harvest would a. increase consumer surplus in the market for corn chips and decrease producer surplus in the market for potato chips. b. decrease consumer surplus in the market for corn chips and decrease producer surplus in the market for potato chips. c. decrease consumer surplus in the market for corn chips and increase producer surplus in the market for potato chips. d. increase consumer surplus in the market for corn chips and increase producer surplus in the market for potato chips.
Answer: Option(a) is correct.
Explanation:
Corn chips and potato chips, both are substitute goods and thus, affect each others demand by a small changes in various factors.
In this question, a good weather increases the harvesting of corn which increases the supply of corn chips.
This shifts the supply curve rightwards as a result price falls and quantity increases. Hence, this lower price, increases the consumer surplus in the market of corn chips.
This change in the supply of corn chips will affect the demand for potato chips in the potato chips market. So, the demand curve for potato chips shifts leftwards. This shift in the demand curve, reduces the price level and quantity level. Hence, this lowers the producer surplus in the market for potato chips.
Good weather increasing corn harvest leads to a decrease in the price of corn chips, which increases consumer surplus for corn chips. This causes a decrease in demand for its substitute product (potato chips), thus reducing the producer surplus in the potato chips market.
Explanation:The correct answer to the question would be option (a): good weather that sharply increases the corn harvest would increase consumer surplus in the market for corn chips and decrease producer surplus in the market for potato chips. Consumer surplus is the economic gain achieved by consumers when they are able to purchase a product for less than the maximum price they are willing to pay. Producer surplus is the difference between the market price and the minimum price a producer would be willing to sell a product.
When the weather is good and the corn harvest increases, it reduces the cost of production for corn chips. This could lead to a decrease in the price of corn chips, thereby increasing the consumer surplus in the market for corn chips. As consumers buy more corn chips due to lower prices, demand for substitute product - potato chips - may decrease. With lower sales, the producers of potato chips could face a decrease in their surplus.
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Taymen Inc., a furniture manufacturer based in Arizona, has tie-ups with raw material suppliers and shipping companies who provide Taymen a uniform pricing option across the United States. Despite the cost of production and distribution being the same across the United States, Taymen charges more for its products on the West Coast than in other parts of the United States. Which of the following acts prohibits this practice? (A) Robinson-Patman Act (B) Sherman Antitrust Ac (C) Clayton Antitrust Act
Answer: The Robinson–Patman Act of 1936 prohibits this practice where , Taymen charges more for its products on the West Coast than in other parts of the United States.
The Robinson–Patman Act of 1936 forbids anti-competitive practices by producers, such as price discrimination.
Therefore, if Taymen charges more for its products on the West Coast than in other parts of the United States. It is violating the Robinson–Patman Act of 1936.
Read the scenario. The citizens of Country D have noticed that the average prices of most goods within their nation have begun to rise. At the same time, employers are not raising wages at the same rate. The combination of these challenges has resulted in a decrease in overall demand, causing a decline in GDP. According to the scenario, what is the greatest economic challenge that Country D is facing? unemployment stagflation high production high wages
Answer:
stagflation
Explanation:
This country is undergoing a process of stagflation, which is the combination of stagnation in economic activity and high inflation. The recipe for stagflation is exactly as described. Decrease in real wages caused by the inflation process and decrease in consumption because agents are becoming poorer and more fearful about the future.
Answer:
B
Explanation:
edge 2020 :)
A prosecutor convened a grand jury to bring criminal charges against a pharmaceutical corporation. The charges were related to a new drug that was linked to several deaths. The prosecutor served a subpoena on a corporate employee who oversaw the testing of new drugs and kept the records related to such testing, requiring the production of all records related to testing done on the new drug. The employee refused to produce the records on Fifth Amendment grounds, asserting that the production of the records might incriminate him personally. Is the employee likely to be required to produce the records?A. No, because the Fifth Amendment privilege applies to corporations.B. No, because the production of the records would incriminate the employee personally.C. Yes, because the Fifth Amendment privilege does not apply in grand jury proceedings.D. Yes, because the Fifth Amendment privilege does not extend to the custodian of corporate records.
Answer: the correct answer is D. Yes, because the Fifth Amedment privilege does not extend to the custodian of corporate records.
Explanation:
Although the custodian of corporate records as an individual enjoys the Fifth Amendment privilege about self-incrimination, the request for production is being made to the custodian in his capacity as a corporation employee and therefore the Fifth Amendment does not apply.