Answer:
Rock Inc.
Gross profit ratio:
= 0.70
Explanation:
a) Data and Calculations:
Sales $473,864
Cost of Goods Sold 142,263
Gross profit $331,601
Gross profit ratio = Gross profit/Sales
= $331,601/$473,864
= 0.69978
= 0.70
b) Rock's gross profit is the difference between the Sales Revenue and the Cost of Goods Sold. It is the first profit point on the Income Statement. It measures the company's ability to convert sales revenue into profit after accounting for the cost of goods sold. This profit will cover the expenses incurred in running the business for the particular period.
That is true. Good luck on your future endeavors.
Answer:
1. Inside the dorm room, the movies are <em>Non-Rival</em> which means that one person can watch the movie and it will not diminish the ability of others to watch as well.
Also as they are all in the same dorm, the showing of the movie is <em>Non-Excludable</em> as well because no one can stop the other from watching.
Public good is both Non-Rival and Non-Excludable so the showing of a movie IS a public good.
2.
Musashi Sean Bob Eric Total Willingness to pay
10 9 8 3 30
8 7 6 2 23
6 5 4 1 16
4 3 2 0 9
2 1 0 0 3
The optimal number of movies that can be rented is dependent on their total willingness to pay. If their Total willingness to pay for the movie is above $8 which is the cost of a movie, then they will get it. From the table, the fifth movie is below the price of $8 so they <u>should rent 4 movie</u>s.
3. If they rent 4 movies and there are 4 of them then the cost per person is;
= (8 *4)/4 people
= 24/4
= $8
This means that each roommate will pay <u>$8</u>.
B. The higher the price, the larger the quantity produced.
Answer:
The answer to this question is A. Interaction between a private party and another private party
Explanation:
A free market economy, otherwise known as a capitalist economy is one that is controlled by private individuals with little or no government control.
A free or capitalist system may be defined as one in which all or most means of production are owned and controlled by private individuals and in which the economic activity of the government is at minimum.
In a capitalist economic system, private individuals play greater role than the government in taking decision about on what to produce, how to produce and the distribution of what is produced.
Hence, the allocation of benefits and costs is determined in a free market economy by A. Interaction between a private party and another private party
