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shepuryov [24]
3 years ago
6

Suppose the market for gourmet chocolate is in long-run equilibrium, and an economic downturn has reduced consumer discretionary

incomes. Assume chocolate is a normal good, and the chocolate producers have identical cost structures. a. Demand will . b. Profits for chocolate producers in the short run will . c. Chocolate producers will the market. d. The long-run supply curve will .

Business
1 answer:
VashaNatasha [74]3 years ago
8 0

Answer:

a. Decrease

b. Decline

c. Exit

d. No change

Explanation:

The market for gourmet chocolate is in the long-run equilibrium, and an economic downturn has caused the consumer disposable income to fall. Chocolate is a normal good, and the chocolate producers have identical cost structures.

a. This decline in the consumer income will reduce the purchasing power of the consumers. As a result, the demand will decrease. The demand curve will move to the left.

b. This leftward shift in the demand curve will cause the price to decline, As the price falls, the profits earned by the producers will decline as well.

c. In the long run, the firms operate at zero economic profits. So a decline in profits imply that the firms are operating at an economic loss. This will cause the loss incurring firms to exit the market.

d. The long run supply curve will remain the same. It is not affected by change in profits, it changes only with change in the state of technology or availability of resources.

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3 years ago
How many economic impact payments were there in 2021.
olga2289 [7]

Answer:

three Economic Impact Payments

Explanation:

Recovery rebate credits (Economic Impact Payments) for 2020 and 2021. To provide financial relief during a pandemic, many Americans received three Economic Impact Payments (EIP) in 2020 and 2021. The third payment, which began rolling out in March 2021, served as an advance payment of the 2021 Recovery Rebate Credit.

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The gains from trade are Group of answer choices a. evident in economic models, but seldom observed in the real world. b. eviden
liubo4ka [24]

Answer:

The correct answer is letter "C": a result of more efficient resource allocation than would be observed in the absence of trade.

Explanation:

Trade has allowed societies to exchange their products according to their needs. Thanks to trade those goods are distributed accordingly more <em>efficiently </em>since, in isolation, countries would be specialists of certain types of products only which is unlikely to be enough to cover all the individuals' needs in those societies.

7 0
2 years ago
Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi p
alexgriva [62]

Answer:

Kokomochi

The incremental earnings associated with the advertising campaign in its first year is:

= $0.3 million.

Explanation:

a) Data and Calculations:

Advertising campaign cost = $5.5 million

                                                  Mini Mochi     Other Products   Total

                                                      Much

Incremental sales revenue        $8.2 million      1.8 million        $10 million

Incremental cost of goods sold   5.2 million      1.4 million           6.6 million

Incremental gross profit            $3.0 million      0.4 million          3.4 million

Advertising cost                                                                              3.1 million

Incremental earnings associated with the advertising campaign = $0.3 million

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This year = $8.2/$14.4 * $5.5 million = $3.1 million

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6 0
3 years ago
Marshall-Miller &amp; Company is considering the purchase of a new machine for $50,000, installed. The machine has a tax life of
vlabodo [156]

Answer:

$10,620

Explanation:

Depreciation for Year 1 = 0.202 × $50,000

                                       = $10,100

Depreciation for Year 2 = 0.323 × $50,000

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Depreciation for Year 3 = 0.194 × $50,000

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Depreciation for Year 4 = 0.125 × $50,000

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Accumulated depreciation = $10,100 + $16,150 + $9,700 + $6,250

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Book value of machine as on date of sale:

= Purchase price - Accumulated depreciation

= $50,000 - $42,200

= $7,800

Selling price = $12,500

Gain on sale of machine = $12,500 - $7,800

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Tax rate = 40%

Tax on capital gain = $4,700 × 0.40

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Net proceeds on sale of machine:

= Selling price – Tax paid on capital gain

= $12,500 - $1,880

= $10,620

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