Answer:
Curve 1 - Marginal private cost curve
Curve 2 - demand curve
Curve 3 - Marginal Social Benefit Curve
Q1 - Market Output
Explanation:
Marginal cost is the cost for one additional unit production. It is U shaped because when more units are produced the marginal cost will decline. When more units are produced and sold the marginal cost will be lower. There fore demand curve should be inclining when marginal cost needs to be lower.
Answer:
7.1%
Explanation:
Purple martin has an annual sales of $687,400
The total debt is $210,000
Total equity is $365,000
Profit margin is 5.9%
= 5.9/100
= 0.059
The first step is to calculate the net income
Net income= sales×profit margin
= $687,400×0.059
= $40,556.6
The next step is to calculate the total assets
Total assets= Total debt+Total equity
= $210,000+$365,000
= $575,000
Therefore, the return on assets can be calculated as follows
ROA= Net income/Total assets
= 40,556.6/575,000
= 0.0705×100
= 7.1%
Hence the return on assets is 7.1%
Answer:
Option C: Low rates of growth of the quantity of Money
Explanation:
Growth of money and inflation rate are directly associated with each other. If the money supply increases in the economy, it may increase the demand for various products and thus increases their prices. Low inflation or the prices of commodities will not rise if;
- Supply of money in the economy is reduced
- The goods are supplied in more quantity than the inflation rate, e.g. if the inflation rate is 10 % and goods supplied increases by 15 %, then the prices of goods may fall keeping remaining factors constant.
Answer:
Overhead Cost - S1 = $30201
Explanation:
To assign Overhead costs to S1, we first need to calculate the Overhead Absorption rate for Machining and Order filling.
The Overhead Absorption rate for Machining is calculated by dividing the Machining Overheads by the number of Machine hours to calculate $ Overhead per Machine Hour.
- Total Machining Hours = 11500 + 3600 = 15100
- Machining = $11325 / 15100 Hours = $0.75 / Machine Hour
Now we do the same calculation for Order Filling Overheads and divide them by Number of Orders.
- Total Number of Orders = 270 + 1240 = 1510
- Order Filling = 26274 / 1510 = $17.4 per order
Now we allocate the Overheads to S1 on the basis of Machine Hours and Number of orders relating to S1.
- S1 Overheads = 0.75 × 11500 + 17.4 × 1240 = $30201
<span>Assets, $30,000 decrease; liabilities, $30,000 decrease; equity, no effect.</span>