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when efficiency is disrupted in pure competition producers will reallocate resources until product supply is such that price wil

Gelneren [198K]

When efficiency is disrupted in pure competition producers will reallocate resources until product supply is such that price will again equal marginal cost.

<h3>Explanation:</h3>

Marginal cost refers to the cost that is incurred due to the production of additional one unit of any goods or services. It includes all the cost in the production of the extra one unit of the product or services. For instance consider an organisation is planning to build a new machine fore the product of a product and the cost associated with building the new plant will be the marginal cost.

Pure competition market is also called as perfect market. Here there will be a large number of sellers who are the competitors selling a same product. In such a market when the efficiency gets disrupted, then the producers can involve in the reallocation of resources until product supply is such that price will again equal marginal cost.

8 0

4 years ago

An economy is described by the following equations:C = 1,500 + 0.9 (Y – T)I p = 1000G = 1,500NX = 100T = 1,500Y* = 8,800The mult

xz_007 [3.2K]

Answer:

a. Increases by 1000 to 9800

b. Increases by 900 to 9700

c. Decreases by 1000 to 7800

Explanation:

The multiplier in economics is a concept that measures the rate of change in output as a result of a unit change in spending. In other words, it explains that a given change in consumption or investment spending will result in a greater change in aggregate output, thus called multiplier

a. Given Y*=8800 in the question and Multiplier= 10, we can calculate the effect of a 100 unit increase in government purchases:

∆Y/∆G=1/(1-MPC)= 10

Thus, ∆Y/100=10

∆Y=1000 ; Thus if government purchases increases by 100, economic output increases by 1000, from 8800 to 9800 (8800+1000).

b. A decrease in tax collections from 1,500 to 1,400 implies 100 units tax reduction

The tax multiplier is given as

∆Y/∆T=(-mpc)/(1-mpc)

Mpc = 0.9, (it was gotten from consumption equation C)

Thus, ∆Y/(-100)=(-0.9)/(1-0.9)

∆Y/(-100)=-9

∆Y= 900; This is an increase in output.

Thus, a decrease in tax collections by 100 increases economic output by 900 to 9700 (8800+900)

c. A decrease in planned investment spending by 100 from 1,000 to 900 is evaluated thus:

(∆Y/∆I)= 1/(1-MPC)= 10

∆Y/(-100)= 10

∆Y= -1000; This implies a decrease in economic output by 1000 from 8800 to 7800 (8800-7800)

Thus, a decrease in planned investment spending by 100 from 1,000 to 900 decreases economic output to 7800

NOTE: MPC is marginal propensity to consume. It is the slope of the consumption function.

3 0

3 years ago

AP Mather sells a snowboard, EZ slide, that is popular with snowboard enthusiasts. Below is information relating to Mather's pur

creativ13 [48]

Answer:

Method Ending Inventory // COGS

W/A 2,585.75 // 10,549.25

FIFO 2,620 // 10,515

LIFO 2,539 // 10,596

Explanation:

sales: 102 units

Sept. 1 Inventory 12 units $100 $ 1,200

Sept. 12 Purchases 45 units $103 $ 4,635

Sept. 19 Purchases 50 units $104 $ 5,200

Sept. 26 Purchases 20 units $105 $ 2, 100

Availalbe for sale 127 units $ 13, 135

Ending Invenotry 127 - 102 = 25 units

COGS will be calcualte as the difference between the cost of goods and the untis at ending inventory.

Weigthed average:

$13,135 / 127 units = 103,42519685 = 103.43 cost per unit

Ending Inventory: 25 units x $ 103.43 = $ 2.585,75

COGS : 13,135 - 2,585.75 = 10,549,25

FIFO

We sold the first, the last are ending invenotry

20 x 105 = 2,100 september 26th

5 x 104 = 520 september 19th

Ending 2,620

COGS 13,135 - 2,620 = 10,515

LIFO

We sold the last, the first are ending inventory

12 x 100 = 1,200 September 1st

13 x 103 = 1,339 September 12th

Ending 2,539

COGS 13,135 - 2,620 = 10,596

4 0

3 years ago

According to forbes how many billionaires are there?.

Alenkinab [10]

Answer:

there is 614.

Explanation:

see answer.

6 0

3 years ago

In preparing its cash flow statement for the year ended December 31, 2021, Green Co. gathered the following data: Gain on sale o

vazorg [7]

Answer:

$77,000

Explanation:

Data provided as per the question below:-

Proceeds from sale of common stock = $153,000

Cash dividends paid = $76,000

The computation of net cash from financing activities is given below:-

Cash inflow from Financing Activities = Proceeds from sale of common stock - Cash dividends paid

= $153,000 - $76,000

= $77,000

Therefore for computing the net cash from financing activities we simply applied the above formula.

5 0

3 years ago