<span>The answer to the question stated above is liquidity.
The ease with which an asset can be converted quickly into cash with little or no loss of purchasing power is liquidity.
>>>Money is said to be perfectly liquid, whereas other assets have a lesser degree of liquidity.</span>
Answer:
The correct answer is: an increase; fall; substitutes; decrease; complements; increase.
Explanation:
Technological improvement has lowered the cost of producing cell phone batteries. This reduction in the cost of production will cause the price of cell phone batteries to decline. Since batteries are used as inputs in the cell phone. The reduction in the price of inputs means that the cost of production would decrease. The firms will be able to supply more at the same cost. The supply, as a result, will increase. The supply curve will shift to the right. The price of cell phones will decline.
Cell phones and landlines are substitutes. They can be used in place of each other. A decrease in the price of cell phones would cause the demand for landlines to decrease as the consumers will prefer a cheaper substitute.
The cell phones and applications, however, are use complements. They are used together. So when the price of cell phones decrease and its demand increase, the demand for cell phone applications will increase as well.
Answer:
Adriana Corporation
Using the High and Low method the Variable and Fixed portions of the Total Cost is:
Fixed Costs = $247,420
Variable Costs = $39.50 Per unit x 8,020 Machine Hours = $316,790
B. at an average of 7,500hrs Machine hours, the estimated Overhead costs = $247,420 x (39.50 x 7,500)
= $543,670
Explanation:
The High and Low Method is a costing method which attempts to split the mix of Fixed and Variable costs in a mixed Total cost of production by looking at one element of variability (in this case Machine Hours)
It is a subjective approach, however simple to calculate. Other method is the regression analysis, which is more complex in comparison to the high and Low
The attached excel file shows how we derived the Variable and Fixed Costs element of the Overhead Costs
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Answer:
EOQ = 72 units
Explanation:
Annual demand D = 1,286 units
Ordering cost S = $47
Holding percentage I = 35%
So, 0 - 199 units, the unit cost is $66
EOQ = 
EOQ = 
EOQ = 
EOQ = 72.33998613
EOQ = 72 units
Answer:
C. Checkable deposits decline by $10 million.
Explanation:
The banks must keep a reserve of money at Central Banks, the amount is defined by the reserve ratio, 10% in this case, but the banks could keep an extra reserve of money at Central Banks, in this case it's $ 1 million, so, if the bank decides to keep that reserve it means will be less money available to checkable deposit in the same amount.
When the banks keeps reserve by his own will, the required reserve ratio is not applicable to the amount, is the same situation as if we want to keep our money in the bank, for banks, they keep money in Central Banks.
hoping having been clear.
