<u>Solution and Explanation:</u>
The given data:
Tariff on goods = $5
Change of price = from $20 to $18
Import falls from 100 units to 60 units
As per the given data, the terms of trade can be calculated as follows:
Terms of trade gain = 
= 
= 120
Therefore, the terms of trade gain is $120
The efficiency loss is calculated as follows:
= 60
Therefore, efficiency loss = $60
Answer:
The correct answer is letter "C": design planning.
Explanation:
Design planning involves all the steps by which a firm drafts the product they would like to offer and determines what activities will be necessary to transform the draft into reality. The firm's production, marketing, and budget are also outlined at this stage to find out what resources will be necessary for the venture.
This information is helpful for investors since they will be the ones deciding if funding the plan or not.
Answer:
A. $60
Explanation:
Recall that, consumer's surplus refers to the price that a consumer is willing to pay less the amount he or she actually pays.
Thus
Consumer surplus = maximum price willing to pay - actual market price.
Given that
Market price = $40
Vonda is willing to pay = $90
Aleiyah is willing to pay = $50
Hence.
Vonda consumer surplus = 90 - 40
= $50
Aleiyah consumer surplus = 50 - 40
= $10.
Total consumer surplus = 50 + 10
= $60.
Answer:
$7,750
Explanation:
The computation of the net income for the first year is shown below:
but before that following calculations needed
The Cost of production is
= Direct material + Direct labor + Manufacturing overhead
= $11,625 + $11,000 + $10,000
= $32,625
The Unit product cost is
= $32,625 ÷ 7,250 units
= $4.50 per unit
Now
Cost of goods sold = Number of units sold × cost per unit
= 4,500 units × $4.50
= $20,250
And, finally
Net Income = Sales revenue - COGS - general, selling, and administrative expenses
= (4,500 units × $7) - $20,250 - $3,500
= $7,750
Answer:
b
Explanation:
According to Marshall Laws of Derived Demand, labor demand is more inelastic in the following circumstances :
- the cost of employing labour constitutes a small proportion of the total cost of production.
- the demand for the product is relatively inelastic
- labour cannot be easily substituted for in the production process
- when the supply of other factors of production is inelastic
