Answer:
1. Actual Price
2. Misperceptions theory.
Explanation:
In the short run, the quantity of output that firms supply can deviate from the natural level of output if the ACTUAL PRICE level in the economy deviates from the expected price level. Several theories explain how this might happen.
For example, the MISPERCEPTIONS THEORY asserts that output prices adjust more quickly to changes in the price level than wages do, in part because of long-term wage contracts. Suppose a firm signs a contract agreeing to pay its workers $15 per hour for the next year, based on an expected price level of 100 Year.
The above explanations is the reason why the aggregate supply curve slopes upward in the short run
Answer:
A change in quantity demanded is caused only by
A) price
B) a shift
C) Market
D) Income
The answer is Price(A)
Explanation:
Hope this helps :D
Answer:
$80,000
Explanation:
Calculation to determine what the amount of variable administrative cost to allocate to Department 1 would be
Variable administrative cost to allocate to Department 1=(40,000 ÷100,000) x $200,000
Variable administrative cost to allocate to Department 1=0.4×$200,000
Variable administrative cost to allocate to Department 1= $80,000
Therefore The Variable administrative cost to allocate to Department 1 would be $80,000
Answer:
Part A:
Alcoa has higher expected return hence has a higher equity cost of capital.
Part B:
Capital cost higher=0.0775=7.75% higher
Explanation:
Part A:
Those stocks whose beta is higher has higher expected return because the risk is higher in these stocks. Since Alcoa has beta value value of 2.00 which is higher than Hormel foods having beta 0.45, it means Alcoa has higher expected return hence has a higher equity cost of capital.
Part B:
Difference in beta= Beta of Alcoa-Beta of Hormel
Difference in beta=2-0.45
Difference in beta=1.55
Capital cost higher=Difference in beta*Excess return
Capital cost higher=1.55*5%
Capital cost higher=1.55*0.05
Capital cost higher=0.0775=7.75% higher
Almost two-thirds of people in labor force do not have a college degree
