When producers do not have to pay the full costs of producing a product, they tend to OVER PRODUCE THE PRODUCT BECAUSE OF A SUPPLY SIDE MARKET FAILURE.
When producers are required to pay less than their cost of production for manufacturing their products they tend to produce more products, this is because, producing more products will cost less in production costs compare to if they are required to pay the full cost of production.
Answer:
Old WACC 7.50%
New WACC 7.38%
Explanation:
D 200,000
E 600,000 (10,000 sahres x $60)
V 800,000
Ke 0.08800
Equity weight 0.75
Kd 0.06
Debt Weight 0.25
t 0.4
WACC 7.50000%
New WACC:
Ke 0.09500
Equity weight 0.6
Kd 0.07
Debt Weight 0.4
t 0.4
WACC 7.38000%
Answer:
This question is incomplete, it misses the options. The options are the following:
For the first question:
a) boom
b) expansion
c) recession
For the second question:
a) cyclical
b) frictional
c) structural
And the correct answer are the options B and A: recession and cyclical.
Explanation:
To begin with, when an economy is in recession that means that the whole production of it is slowing down because of the economic policies taken, due to the context of it and many other factors. Therefore that, when an economy is in recession the rate of unemployment increases due to the decrease of the production and that type of unemployment is known as cyclical because it relates to the process that the economy is going through.
The worksheet is used for identifying the accounts that need to be adjusted, summarizing the effects of all the transaction of the period and adding the preparation of the financial statements.
<h3>What is a worksheet?</h3>
It is a document used in the accounting department for analyzing and ensuring accounting entries and records. It is the working space for entering the additional information about the accounting data.
Hence, option D is correct with respect to the worksheet.
To learn more about worksheet click on link given below:
brainly.com/question/2554742
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