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bagirrra123 [75]
3 years ago
12

If an economy consumes 68 percent of any increase in disposable income, then an increase in autonomous investment of $1 billion

would result in an increase in total spending of as much as
Business
1 answer:
madreJ [45]3 years ago
4 0

Answer: The answer is $3,125,000,000

Explanation:

Since autonomous investment is government investment in the economy

68% of the increase in disposable income was consumed

Using the equation

Since Y = yd , spending in the economy is represented by

Equation C = 0.68yd, investment = $1,000,000,000

Y = C + I

Y = 0.68Y + 1,000,000,000

Y - 0.68 = 1,000,000,000

Factor out the variable Y

Y ( 1 - 0.68) = 1,000,000,000

0.32Y = 1,000,000,000

Divide both sides by 0.32

0.32Y/ 0.32 = 1,000,000,000 / 0.32

Y = 3,125,000,000

Therefore the increase in total spending will be $3,125,000,000

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In the retail industry, ABC tries to add value to their products and services so they can attract customers who are willing to p
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Answer:

A. Differentiation strategy.

Explanation:

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In the given scenario ABC tries to add value to their products and services so they can attract customers who are willing to pay a higher price.

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3 years ago
Owens Corporation uses a process costing system. For March, the beginning work in process inventory consisted of 60,000 units th
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Answer:

C) $4.02

Explanation:

The computation of cost per equivalent unit for processing cost for March is shown below:-

As we know that

Beginning work in process inventory units + Units started into production  = Ending work in process inventory units + Units completed and transferred out

60,000 + 190,000 = Units in ending work in process inventory + 200,000

Units in ending work in process inventory is

= 60,000 + 190,000 - 200,000

= 50,000

To complete the beginning work in process inventory:-      

Processing:                                                     24,000

60,000 units ×(100% - 60%) a

Units started and completed                          140,000

(200,000 − 60,000) b

Ending work in process inventory Processing:

50,000 units × 20% c                                      10,000

Equivalent units of production                        174,000

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Equivalent units of production f                     174,000

Cost per equivalent unit e ÷ f                             $4.02

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H. Tillman performed legal services for J. Laney. Due to a cash shortage, an agreement was reached whereby J. Laney. would pay H
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Answer:

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3 years ago
Suppose a farmer in Georgia begins to grow peaches. He uses​ $1,000,000 in savings to purchase​ land, he rents equipment for ​$
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Answer:

$-675,000

Explanation:

here is the full question

Suppose a farmer in Georgia begins to grow peaches. He uses​$1,000,000 in savings to purchase​ land, he rents equipment for​$80,000 a​ year, and he pays workers ​$130,000 in wages. In​return, he produces 200,000 baskets of peaches per​ year, which sell for ​$3.00 each. Suppose the interest rate on savings is 3 percent and that the farmer could otherwise have earned ​$35,000 as a shoe salesman.

Economic profit = accounting profit - implicit cost

Accounting profit= total revenue - explicit cost

Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives

Explicit cost includes the amount expended in running the business. They include rent , salary and cost of raw materials

total explicit cost = (1,000,000 + $80,000 + $130,000) = $1,210,000

total revenue = price x output

$3 x 200,000 = $600,000

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total = 35,000 + 30,000 = 65,000

economic profit = $-610,000 - 65,000 = $-675,000

The peach farmer earns economic profit of ​$

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