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Lemur [1.5K]
3 years ago
10

Michael Chang buys only tennis rackets during a particular year. During the year in question, the price of all goods rises by 10

% on average, but the price of tennis rackets remains the same. Which statement is correct?a. Michael benefits from inflation.b. Michael does not experience inflation because he only buys tennis rackets.c. No matter what Michael buys, he experiences inflation. Michael does not benefit from inflation.d. We can't conclude anything from the information given.
Business
1 answer:
Zolol [24]3 years ago
6 0

Answer:

Michael does not experience inflation because he only buys Tennis rackets

Explanation:

Inflation is defined as increases in price per unit price.

It is the prolonged increase in the price of goods and services caused by devaluation of currency , demand -pull or cost - push. While a certain degree of inflation can be beneficial to a thriving economy , it can become a threat if it becomes larger.

One of the direct impact of inflation is rise in price of goods and services.

As the price of rackets was not affected by the inflation , that means that Michael was not affected by the inflation.

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Answer:

Explanation:

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3 years ago
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Consider a firm which produces T-shirts according to Q = L^0.5, where Q denotes output and L is labor input. The domestic wage i
Luden [163]

From the calculation below, the profit-maximizing labor input is 0.0625, and the profit of the firm is 0.125.

<h3>How do we determine profit-maximizing labor input and profit?</h3>

From the question, we can obtain:

R = Revenue = Q*P = L^0.5 * 1 = L^0.5

C = Cost = w * L = 2L

P = Profit = R - C = L^0.5 - 2L

To obtain the profit-maximizing labor input, the first derivative of P is taken, equated to zero, and we solve for L as follows:

P' = 0.5L^-0.5 - 2 = 0

0.5L^-0.5 = 2

L^-0.5 = 2 / 0.5

L^-0.5 = 4

L^(-0.5/-0.5) = 4^(-1/0.5)

L = 0.0625 ----> profit-maximizing labor input

The profit (P) of the firm can now be calculated by substituting L = 0.0625 into the P function as follows:

P =  0.0625^0.5 - (2 * 0.0625) = 0.125 --------> Profit of the firm

Learn more about profit function here: brainly.com/question/16866047.

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4 0
2 years ago
The hawthorne studies revealed that employees who are happy and satisfied with their work will perform better. out of this study
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The answer that best fits the blank above is HUMAN RELATIONS. The Hawthorne studies, as referred above, were done by Elton Mayo and Fritz Roethlisberger and the studies aim in <span>socio-psychological aspects of human behavior in the workplace or at any organization. As suggested above, human relations is created due to these studies.</span>
6 0
3 years ago
The term for a vindictive type of aggressive driving is road rage.
Veronika [31]

Answer:

true

Explanation:

5 0
3 years ago
(Ignore income taxes in this problem.) Duker Corporation is investigating the purchase of equipment that would increase sales re
Andrew [12]

Answer:

Simple rate of return= 55.48%

Explanation:

The simple accounting rate of return is the average annual income expressed as a percentage of the investment. The simple rate of return can be calculated using either of the two formula below:

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Simple rate of return =

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Simple rate of return = 91,000/164,000× 100= 55.48%

5 0
3 years ago
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