Franchising is the practice of paying a company to use its name, resources and operation systems.
Answer:
The correct answer is A.
Explanation:
Giving the following information:
The equilibrium quantity in the market for widgets is 200 per month when there is no tax. Then a tax of $5 per widget is imposed. As a result, the government can raise $800 per month in tax revenue.
We need to find the level of demand that allows the government to raise $800 per month.
Q=Total Tax/Unitary Tax
Q= 800/5
Q= 160
The new equilibrium is 160 units. Therefore, the equilibrium has fallen 40 units.
The answer to the given question above is AUTOMATIC STABILIZER. So in the fiscal policy, the term automatic stabilizer refers to the policies and programs which are created in order to counterbalance or neutralize any changes (e.g. fluctuations) in the national income or economic activities. This no longer requires an intervention from the government or policymakers.
Answer:
$7.90 per unit
Explanation:
The computation of the minimum price on these defective units is shown below:
It is equivalent to the selling & admin variable cost per unit i.e. $7.90 per unit
oAs all the other cost would be considered as a sunk cost because the product is already generated and the fixed cost is not considered as it would remain the same whether the production is increase or not
Therefore the second option is correct
