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CaHeK987 [17]
3 years ago
10

In a flexible budget, when the activity declines, the total variable cost also declines.

Business
1 answer:
Triss [41]3 years ago
4 0
That statement is false.
Variable cost is the type of cost that incurred everytime a product is being produced. In flexible budget, the total budget will be adjusted to the amount of changes in volume or activity, which make the variable cost pretty much the same even though the activity is declined
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If a firm decides to increase the depth of its offerings to address consumer preferences, what will it do
Shtirlitz [24]

Answer: consumers find it unfair for firms to increase prices after an increase in demand".

Explanation: Economists established 2 explanations of why companies do not increase their prices even if they can make higher profits.

First it was discovered that some products have the characteristic that the amount of product that a customer wants to buy can depend on the amount of the product that other people are consuming.

And then it was discovered that most people are satisfied that companies raise prices because of an increase in costs, but consider it unfair to raise prices as a result of increased demand.

Explanation:

7 0
2 years ago
R(0,t) is the Spot Zero-Coupon (or Discount) Rate. It is the annualized rate on a pure Unit Discount bond B(0,t) - the bond that
nikitadnepr [17]

Answer:

0.368

Explanation:

Price of B(0,13) = 1 / (1 + interest rate)^years

Price of B(0,13) = 1 / (1 + 8%)^13

Price of B(0,13) = 1 / (1+0.08)^13

Price of B(0,13) = 1 / (1.08)^13

Price of B(0,13) = 1 / 2.7196237

Price of B(0,13) = 0.3676979247

Price of B(0,13) = 0.368

8 0
3 years ago
Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased fr
andreyandreev [35.5K]

Answer:

Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased from 4.8% to 6.2%. The sacrifice ratio is:______

d. none of the above

Explanation:

a) Data and Calculations:

Old inflation rate = 3%

New inflation rate = 1.6%

Old unemployment rate = 4.8%

New unemployment rate = 6.2%

Ratio of old inflation rate to old unemployment rate = 3 : 4.8 = 0.625

Ratio of new inflation rate to new unemployment rate = 1.6% : 6.2% = 0.258

Sacrifice ratio = Difference between the two ratios = 0.367 (0.625 - 0.258)

b) The sacrifice ratio is the difference between the old ratio and the new ratio of inflation rate to unemployment rate.

6 0
2 years ago
The constant dividend growth model: a. is more complex than the differential growth model. b. requires the growth period be limi
Finger [1]

Answer:

The correct answer is letter "D": can be used to compute a stock price at any point in time.

Explanation:

The Gordon Growth Model, also known as the Constant Dividend Growth Model, is used to measure the value of the stock at any point in time based on the projected future dividends of the stock. Investors and analysts are commonly used to compare the estimated value of the stock against the current market price. Analysts interpret the gap between the two prices as proof that the stock could be under or overvalued by the market.

8 0
3 years ago
Consider the supply curve for basketballs. Other things held constant, if the price of basketballs goes up from $7. 99 to $14. 9
Tanzania [10]

There will be an increase in quantity supplied. (The Law of Supply)

  • A key tenet of economic theory is the rule of supply, which asserts that a rise in price will result in an increase in the quantity provided, all other things being equal. In other words, there is a direct correlation between price and quantity, and quantities react to price changes in the same way.'
<h3><u>What is a case of the law of supply?</u></h3>
  • For instance, if Apple produces 100 iPhones, then this is the quantity that is sold. The link between pricing and supply is referred to as the "law of supply." Supply also rises in tandem with price growth. In the event that prices decline, so will supply.

To Learn more about Law of Supply, Click the links.

brainly.com/question/17805586

brainly.com/question/17805586

#SPJ4

8 0
2 years ago
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