Answer:
B.
Explanation:
Fixed costs are those costs which are not output dependent. Are fixed till certain level of output. The fixed cost per unit changes with output.
Variable costs are those costs which are output dependent. There is a positive correlation between the production output and the variable cost. The variable cost per unit remains constant.
With the classification of cost into fixed and variable, the manager can count the break even point, in amount terms as well as in the number of unit terms.
The ratio between the variable cost and fixed cost shows how much adjustable is the organization.
Answer:
When a financial friction is added to the short-run model it: shifts the MP curve up.
Explanation:
The short-run model, IS/MP model, describes the Investment-Savings/Monetary Policy model used by the US Federal Reserve to decrease the real interest rate through the Federal Funds rate, i.
The Federal Funds rate is the interest rate that commercial banks with excess reserves lend to others in deficit. The resulting shift occasions a decrease in the real interest rate which triggers an increase in the inflation rate, and vice versa. With such short-run changes in the interest rate, inflation and output is influenced in desirable directions by the Federal Reserve as a foundation to achieve long-term shifts in the AD-AS model.
The AD-AS model is a long-term model that describes Aggregate Demand and Aggregate Supply which impact long-term inflation, interest rates, and output.
Answer:
Rent is $2400
utilities other than cellphone is $625
Total home office expenses is $3025
Explanation:
firstly we need to calculate the percentage of how much in total does the office take in the apartment so we will say (300 square feet/1200 square feet) x 100
which is 25% so then to get the rental expense of the office we will say :
25%x$9600 = $2400 we say 25% which is office space in the apartment multiplied by the total apartment rental to get the office rent expense.
Then for the utilities we will say 25%x$2500 = $625 we multiply like this because the office uses 25% of all the apartment utilities .
thereafter the total home office expenses is the sum of both the rental office expense plus the the utilities other than telephone for the home office expense:
$625 + $2400 = $3025 then we get total home office expenses.
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