Understanding how income is distributed within and across populations informs firms of different groups purchasing power.
This is further explained below.
<h3>What is
purchasing power.?</h3>
Generally, The buying power of a certain currency is defined as the number of goods and services that can be acquired by spending a specific amount of that money.
For illustration purposes, in the 1950s, if one went to a store with one unit of cash, they would have been able to buy whatever was on the shelf.
Income: money that is earned, often on a regular basis, as a direct or indirect consequence of one's job or investing activities.
In conclusion, Firms need to have an understanding of the distribution of income both within populations and between populations in order to determine the buying power of various groups.
Read more about purchasing power.
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Boil noodles. add sauce. make meat balls. add it together. yummy.
Answer:
$1.41144
Explanation:
<em>Assuming that </em><em>distribution of its earning to its shareholder is 30% </em><em>as against the 0% which is likely a mistake because the tax rate on dividend income of 27% is also given in the question</em>
Earning before tax $13
Less: Corporation tax <u>$5.46</u>
($13 * 42%)
Earnings after tax <u>$7.54</u>
<u />
Dividend distribution = $7.54 * 30% = $2.262
After tax dividend = $2.262 * (1-0.27) = $2.262 * 0.78 = $1.7643
Shareholder earnings after Income tax = $1.7643 * (1 - 0.20) = $1.7643 * 0.80 = $1.41144
Therefore, the Shareholder earnings from the Corporation assuming the <em>distribution of its earning to its shareholder is 30% </em>is $1.41144
Answer: $8,600
Explanation:
Implicit cost is also known as the opportunity cost which means that it is the benefit of the next best alternative that was foregone when the current decision was made.
The implicit cost here is therefore:
The $8,000 that Charles could have been making as a lifeguard.
The interest per year he could have been earning on the $5,000 he used to buy mowing equipment.
The depreciation on the mowing equipment because depreciation is not an explicit cost but an implicit one.
= 8,000 + (2% * 5,000) + (10% * 5,000)
= 8,000 + 100 + 500
= $8,600
Answer:
Bottleneck
Explanation:
A bottleneck can be described as a problem that causes delay in a process. The waiting line at the fee payment station is very long and this prevents the smooth sailing of the registration process and thus it constitutes a bottleneck
