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2 years ago

According to the invisible hand theory, efficiency is dependent on the activity of interacting in free markets

2 answers:

8 0

According to the invisible hand theory, the wealth of nation is dependent on the activity of <em>self-interacted individuals</em> interacting in free markets.

<h3>What is invisible hand theory?</h3>

The unseen forces that steer the free market economy are represented by the metaphor of the invisible hand. The best interests of society as a whole are served by allowing individuals to act in their own self-interest and with<em> freedom to produce and consume.</em> Prices and trade flow naturally as a result of the ongoing interaction of individual influences on <em>supply and demand in the market.</em>

The metaphor of the invisible hand describes how self-interested people behave in a free market economy through a network of interconnectedness. In his books The Theory of Moral Sentiments from 1759 and an Inquiry Into the Nature and Causes of the Wealth of Nations from 1776, <em>Adam Smith </em>introduced the idea.

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AfilCa [17]2 years ago

6 0

The invisible hand theory states that the <u>wealth of nation</u> is dependent on the activity of interacting in free markets.

<h3>What is invisible hand theory?</h3>

This refers to the tendency of the market prices to direct an individuals into pursuing their own self interests into productive activities which consequently promote economic well-being of society.

Hence, the invisible hand theory states that the <u>wealth of nation</u> is dependent on the activity of interacting in free markets.

Read more about invisible hand theory

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A firm sells two products, Regular and Ultra. For every unit of Regular the firm sells, two units of Ultra are sold. The firm's

sladkih [1.3K]

Answer:

regular - 32,000

ultra - 64,000

Explanation:

Please find the remaining part of this question in the attached image

Breakeven quantity are the number of units produced and sold at which net income is zero

Breakeven quantity = fixed cost / price – variable cost per unit

Contribution margin :

Regular = 22 - 8 = 14

Ultra = 25 - 8 = 17

weighted contribution margin = (1/3 x 14) + (2/3 x 17) = 16

Firms breakeven = $1,536,000 / $16 = 96,000

Regular's breakeven = 1/3 x 96,000 = 32,000

Ultra's breakeven = 2/3 x 96,000 = 64,000

3 0

3 years ago

Morphological types become useful temporal types if their frequencies change significantly through time and they are restricted

Keith_Richards [23]

True. A morphological type can be a useful temporal type when subjected to a change and restriction of time. Example, a morphological type that occurs only in strata dating between 1500 BP and 1000 BP can elevate into a temporal type. It is because artifacts that belong to the temporal turn up into an undated context.

6 0

3 years ago

How many episodes of Seinfeld are there

klio [65]

I think it is 180 :)

5 0

3 years ago

James, Inc., has purchased a brand new machine to produce its High Flight line of shoes. The machine has an economic life of 5 y

My name is Ann [436]

Answer:

3,074 units sold or total revenue of $236,698 per year

Explanation:

cost of machine $540,000

depreciation expense per year = $540,000 / 5 = $108,000

contribution margin per unit sold = $77 - $29 = $48

we generally calculate the financial break even point of a business by using the following formula:

= EBIT × (1 - interest expense) × (1 - tax rate) - preferred dividends

But when we are dealing with projects, the financial break even point is the sales level at which the project's NPV = $0. If the sales level is lower, then the project will be rejected, and if the sales level is higher, then it should be accepted.

using an annuity formula, the free cash flow per year needed for the NPV = $0 is $540,000 / 3.8897 (PV annuity factor, 9%, 5 periods) = $138,828.19

$138,828.19 = {[(unit sales x $48) - $108,000] x 0.78} + $108,000

$30,828.19 = [(unit sales x $48) - $108,000] x 0.78

$39,523.32 = (unit sales x $48) - $108,000

$147,523.32 = unit sales x $48

unit sales = $147,523.32 / $48 = 3,073.40 units ≈ 3,074 units sold

3 0

3 years ago

_ is the actual amount each common stockholder would expect to receive if a firm's assets are sold for their market value, cre

Alona [7]

Answer: Liquidation value

Explanation:

The liquidation value is one of the type of physical assets of an organization and the business value, real estate firms, directories and the equipment are refers as the liquidation value that helps in evaluating the overall worth of the firm.

This organizational value is lower as compared to the market value and it has less time for selling the products in the open market.

According to the given question, the liquidation value is refers as the actual amount of the stockholder expected value value in the market. Therefore, Liquidation value is the correct answer.

5 0

3 years ago