Answer:
- $1,099,890 billion.
Explanation:
Marginal propensity to consume (MPC) = 0.990
Tax multiplier = - MPC ÷ (1 - MPC)
= - 0.990 ÷ (1 - 0.990)
= - 9
9
change in GDP = Change in taxes × Tax multiplier
= $11110 × (-99)
= - $1,099,890
the minus sign shows a decrease
Hence, the change in equilibrium GDP is - $1,099,890 billion.
Answer:
The Beet Juice should be processed further
Explanation:
<em>A company should process further a product if the additional revenue from the split-off point is greater than than the further processing cost. </em>
<em>Also note that all cost incurred up to the point of crush are irrelevant to the decision to process further </em>
Product Additional Rev. Further process cost. Net income(loss)
($)
Beet Fiber 40-27 =13 16 (3) See notes
Beet Juice 100- 43 = 57 28 29
The beet fiber should not be process further while the beet juice should be be processed further into refined sugar . Processing Beet Juice further will generate additional income of $29 per unit while Beet Fiber would generate a loss of $(3)
Notes
The net income(loss) is the difference between the additional revenue from further processing and the further processing cost. The Net income(loss) for the two products is computed as follows:
Beet Fiber =13- 16 = (3)
Beet Juice = 57 - 28 = 29
Answer:
$1,600
Explanation:
Revenue is recognized as and when the <em>control</em> of a good or service is transferred to the customer.
Total Hours = 10 hours × 8 weeks
= 80 hours
Use the <em>rate of pay at the utility office</em> to determine the contribution revenue for Red Wolf Society
Revenue = 80 hours × $20 per hour
= $1,600