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1 year ago

the supply curve slopes upward because at a higher price, producers have an incentive to produce more

1 answer:

6 0

The supply curve slopes upward because at a higher price, producers have an incentive to produce more and supply a larger quantity.

More about the supply curve:

The supply curve illustrates the relationship between the price of an item or service and the volume delivered over a specific time period. In a typical scenario, the amount supplied will be shown on the horizontal axis and the price will be shown on the left vertical axis.

The law of supply is expressed by the supply curve, which rises from left to right: The amount supplied rises as a certain commodity's price rises. A new supply curve must be created if a component other than price or quantity changes.

Learn more about the supply curve here:

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Paul consumes only books and DVDs. At his current consumption bundle, his marginal utility from DVDs is 23 and from books is 5.

Paul [167]

Answer:

Paul is not maximizing his utility because MUd/Pd is greater than MUb/Pb

Explanation:

Marginal utility is the extra satisfaction derived from spending an additional unit of money on consuming a particular product or service.

In order to determine if he is maximizing his utility, we must calculate his utility per dollar, and this is done by dividing his Marginal Utility by the price.

Marginal Utility per dollar of DVDs is:

MUd/Pd = 23/11 = 2.09

Marginal Utility per dollar of books is:

MUb/Pb = 5/3 = 1.67

Utility is maximized when MUd/Pd is equal to MUb/Pb and Paul has exhausted his budget.

4 0

4 years ago

Orion Iron Corp. tracks the number of units purchased and sold throughout each year but applies its inventory costing method at

balandron [24]

Answer:

Transactions Units Unit Cost

a. Inventory, Beginning 300 $ 14

b. Purchase, April 11 950 12

c. Purchase, June 1 850 15

d. Sale, May 1 (sold for $42 per unit) 300

e. Sale, July 3 (sold for $42 per unit) 630

f. Operating expenses (excluding income tax expense), $18,200

1 and 2) When you use a periodic inventory method, cost of goods available for sale and ending inventory are the same. They differ only when you use a perpetual inventory.

ending inventory = 1,170 units

Ending inventory under FIFO:

$28,350 - $11,760 = $16,590

Ending inventory under LIFO:

$28,350 - $13,710 = $14,640

Ending inventory under weighted average:

$28,350 - $12,555 = $15,795

3) total units sold = 930 units

COGS under FIFO:

(300 x $14) + (630 x $12) = $11,760

COGS under LIFO:

(850 x $15) + (80 x $12) = $13,710

COGS under weighted average:

($28,350 / 2,100) x 930 = $12,555

4) Income statement under FIFO

Sales revenue $39,060

COGS ($11,760)

Gross profit $27,300

Operating expenses ($18,200)

Operating income $9,100

Income statement under LIFO

Sales revenue $39,060

COGS ($13,710)

Gross profit $25,350

Operating expenses ($18,200)

Operating income $7,150

Income statement under weighted average

Sales revenue $39,060

COGS ($12,555)

Gross profit $26,505

Operating expenses ($18,200)

Operating income $8,305

6) FIFO minimizes operating income, therefore, minimizes income tax expense.

4 0

3 years ago

You are selling a product in an area where 30 % of the people live in the city and the rest live in the suburbs. Currently 20 %

irina1246 [14]

Answer:

a). I would adopt the increase in market share in the suburbs by 15 % since the number of final suburbs dwellers who will use my product is (0.0805 x) which is greater than final city dwellers' (0.075 x)

b). The total percentage of people who are city dwellers who own your product before the new sales drive=46.15%

Explanation:

a). We can make the following expressions;

Total number of both city dwellers and suburb dwellers=x

City dwellers=30% of x=(30/100)×x=0.3 x

Suburb dweller=70% of x=(70/100)×x=0.7 x

Total number of city dwellers who use your product initially=(20/100)×0.3 x=0.06 x

Total number of suburb dwellers who use your product initially=(10/100)×0.7 x=0.07 x

If we increase the market share in the suburbs by 15%

Number of suburb dwellers=0.07 x+(15/100)×0.07 x

Number of suburb dwellers=(0.07 x+0.0105 x)=0.0805 x

If we increase market share in the city by 25%

Number of city dwellers=0.06 x+(25/100)×0.06 x

Number of city dwellers=(0.06 x+0.015 x)=0.075 x

I would adopt the increase in market share in the suburbs by 15 % since the number of final suburbs dwellers who will use my product is (0.0805 x) which is greater than final city dwellers' (0.075 x)

b). Percentage of city dwellers that own your product

Percentage=(Initial number of city dwellers/Total number of people)×100

Percentage=0.06 x/(0.06 x+0.07 x)=(0.06 x/0.13 x)×100=46.15%

The total percentage of people who are city dwellers who own your product before the new sales drive=46.15%

8 0

3 years ago

Another bank is also offering favorable terms, so Rahul decides to take a loan of $14,000 from this bank. He signs the loan cont

nikklg [1K]

Answer: $14,426.43

Explanation:

At the end of 4 months and assuming a 12 months and 365 days in a year, the formula to be used to calculate how much Rahul owes is;

We use the formula:

Amount owed = Present Value ( 1 + rate/365 ) ^ 365 * time period

Amount owed = 14,000 * ( 1 + 0.09/365 ) ^ (365 *4/12 )

Amount owed = $14,426.43

3 0

3 years ago

Financial statement data for two years for Townson Company are as follows: Year 2 Year 1 Sales $3,645,000 $4,250,000 Fixed asset

Serga [27]

Answer:

C) Townson's fixed asset turnover ratio has decreased between Year 1 and Year 2.

Explanation:

Year 2 Year 1

Sales $3,645,000 $4,250,000

Fixed assets:

Beginning of year 880,000 820,000

End of year 520,000 880,000

fixed asset turnover (FAT) ratio = net sales / average fixed assets

FAT ratio year 1 = $4,250,000 / [($820,000 + $880,000) / 2] = 5

FAT ratio year 2 = $3,645,000 / [($880,000 + $520,000) / 2] = 5.2

Townson's fixed asset turnover ratio increased between year 1 and year 2.

6 0

3 years ago