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DanielleElmas [232]
3 years ago
14

When the price level is falling to a negative zone, the economy is experiencing?

Business
1 answer:
Rasek [7]3 years ago
4 0
When the price level is falling to a negative zone, the economy is experiencing deflation, I believe.
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Wilma, who lives in New York, enters into a contract to buy a painting from Fred, who lives in France. The contract includes all
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Answer:

A court will most likely;

1. Allows the parties to rescind the contract.

Explanation:

The contract includes all the costs of insuring and shipping the painting from France to New York.

Since, the agent that made the shipping estimate makes a mistake when adding up the costs and, as a result, the shipping cost listed in the contract is $1,000 less than the actual shipping costs. A court will most likely allow the parties to rescind the contract because a part of the contract agreement has been breached in error.

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A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25, and bar stools
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Answer:

Break-even point in dollars= $36,364

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Giving the following information:

A firm is selling two products, chairs and bar stools, each at $50 per unit. Chairs have a variable cost of $25, and bar stools $20. The fixed cost for the firm is $20,000.

To calculate the break-even point in dollars for the firm, we need to use the following formula:

Break-even point (dollars)= Total fixed costs / [(weighted average selling price - weighted average variable expense)/ weighted average selling price]

weighted average selling price= (selling price* weighted sales participation)= $50

weighted average variable cost= (variable cost* weighted sales participation)

weighted average variable cost= (25*0.5 + 20*0.50)= $22.5

Break-even point in dollars= 20,000/ [(50 - 22.5)/ 50]= $36,364

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