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3 years ago

When is output level and supply inelastic? short run or long run

1 answer:

4 0

Output and input levels always tend to an equilibrium point it the long run, meaning they are inelastic in the long run.

Elasticity refers to how much supply and/or demand changes with changes in pricing. The more elastic, the more change there is.

In the short-term, output and and supply can change dramatically, but in the long run things tend back to the middle (equilibrium).

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Joyce Murphy runs a courier service in downtown Seattle. She charges clients $0.60 per mile driven. Joyce has determined that if

kotykmax [81]

Explanation:

The computation of the fixed cost and the variable cost per hour by using high low method is shown below:

Variable cost per mile = (High Operating cost - low operating cost) ÷ (High miles - low miles)

= ($845 - $625) ÷ (3,350 miles - 2,250 miles)

= $220 ÷ 1,100 miles

= $0.2 per miles

Now the fixed cost equal to

= High operating cost - (High miles × Variable cost per miles)

= $845 - (3,350 miles × $0.2 per miles)

= $845 - $670

= $175

And, the contribution margin income statement is presented below:

Sales (1,400 × $0.6) $840

Less: Variable cost (1,400 × $0.2) ($280)

Contribution margin $560

Less: Fixed cost ($175)

Net operating income $385

5 0

3 years ago

During the obama administration, the development of low-cost batteries for electric cars received large amounts of federal fundi

UkoKoshka [18]

The policies of the government directly affect how people react to certain things. When the government supports and believes in alternative source of energy they will approve fundings and subsidies efforts that will help promote or make that policy effective and this was the case of the Obama Administration. Moving towards the ideal levels of lowering the dependance on fossil fuel is not only good for the American economy in terms of not having to import refined crude oil for the transport and aviation industry but it's good for the environment at large.

8 0

3 years ago

Read 2 more answers

Charles Berkeley, Inc. just paid an annual dividend of $3.60 per share on its stock. The dividends are expected to grow at a con

8_murik_8 [283]

Answer:

D. $98.15

Explanation:

Price of stock formula;

Price today(P0) = $\frac{D0(1+g)}{r-g}$

D0= Current dividend

g = growth rate

r = required return

Price = $\frac{3.60(1.045)}{0.11 -0.045}$

= 3.762 /0.065

Price = 57.877

Price in 12 years (P12) = P0(1+g)

P12 = 57.877 * $1.045^{12}$

P12 =$98.152

Therefore, price of stock in 12 years will be $98.15

5 0

3 years ago

The common stock of Zeta Group sells for $42 per share, has a rate of return of 12.2 percent, and a dividend growth rate of 1.8

Soloha48 [4]

Answer:

The amount of the last annual dividend paid is $4.3.

Explanation:

Given:

The common stock of Zeta Group sells for $42 per share, has a rate of return of 12.2 percent, and a dividend growth rate of 1.8 percent annually.

Now, to find the amount of last annual dividend paid.

Let the amount of last annual dividend paid be $l.$

Price of per share ( $p$ ) = $\$42.$

Rate of return ( $r$ ) = $12.2\%.$

Rate of dividend growth ( $g$ ) = $1.8\%.$

Now, to get the amount of last dividend paid we put formula:

$p=\frac{l(1+g)}{r-g}$

$42=\frac{l(1+1.8\%)}{12.2\%-1.8\%}$

$42=\frac{l(1+0.018)}{0.122-0.018}$

$42=\frac{l\times 1.018}{0.104}$

Multiplying both sides by 0.104 we get:

$4.368=1.018l$

Dividing both sides by 1.018 we get:

$4.3=l$

$l=\$4.3.$

Therefore, the amount of the last annual dividend paid is $4.3.

6 0

3 years ago

When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by:

eimsori [14]

Answer:

A.selling common stock.

Explanation:

A business raises capital through debt or equity. Debts represent borrowed funds, which include bonds and loans. Equity represents the owner's funds, which comprises of shares and retained earnings.

Should a business not have enough funds for its long term needs, it can sell more shares to the existing shareholders or the general public. Shares represent ownership of the company. Selling common stock means that the company will receive the funds it requires in exchange for ownership rights. Shareholder earns dividends as a reward for providing capital to businesses.

4 0

3 years ago