Answer:
Australia has purchasing-power parity with the U.S.
Explanation:
A basket of goods costs $800 in the US. The same basket costs 1,000 euros in France and 960 Australian dollars in Australia.
The nominal exchange rate for euros is .80 euros per U.S. dollar and for Australian dollars, it is 1.2 Australian dollars per U.S. dollar.
The purchasing power parity theory compares the currency of two countries through a basket of goods. The currency of the two countries is in equilibrium or is at par if a basket of goods cost the same in both the countries.
This method compares the economic productivity and standard of living in two countries.
Converting the value of basket in France into US dollars,
= 
= $1,250
Converting the value of basket in Australia into US dollars,
= 
= $800
The cost of the basket of goods is same in Australia. This indicates that Australia has purchasing-power parity with the U.S.
Answer:
D. 76.6 %
Explanation:
Contribution Margin Ratio = Contribution / Sales × 100
<em>First Calculate the Contribution</em>
Contribution = Sales - Variable Costs
= (60,000 units × $ 12.40) - ($110,000+$30,000+$34,000)
= $744,000 - $174,000
= $570,000
<em>Then Calculate Contribution Margin Ratio</em>
Contribution Margin Ratio = $570,000 / $744,000 × 100
= 76.61290
= 76.6 % ( 1 decimal)
Answer:
D. brings buyers and sellers together
Explanation:
Answer:
B. monopoly firms but not for competitive firms.
Explanation:
Marginal revenue can become negative for monopoly firms but not for competitive firms.
A monopolist’s marginal revenue is always less than or equal to the price of the good.
Marginal revenue is the amount of revenue the firm receives for each additional unit of output. It is the difference between total revenue – price times quantity – at the new level of output and total revenue at the previous output (one unit less).
Since the monopolist’s marginal cost curve lies below its demand curve. When a monopoly increases amount sold, it has two effects on total revenue:
– the output effect: More output is sold, so Q is higher.
– the price effect: To sell more, the price must decrease, so P is lower.
For a competitive firm there is no price effect. The competitive firm can sell all it wants at the given price.
So the marginal revenue on a monopolist's additional unit sold is lower than the price, <u>because it gets less revenue for selling additional units.</u>
<u>Marginal revenue can become negative – that is, the total revenue decreases from one output level to the next.
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