Answer:
c. the substitution effect of the price change will cause Harry to buy more tacos and fewer subs.
Explanation:
Since the price of tacos decreased, subs became relatively more expensive. The substitution effect occurs when a consumer (Harry in this case) changes his consumption habits because the price of the goods changes. In this case, tacos become cheaper, and therefore, Harry will obtain more utils per dollar.
Answer:
An annuity that pays $1,000 at the beginning of each year
PTM of the annuity selling for 2,541.15 $ 437.50
Present value of the Jackpot: $62,063,701
Explanation:
Because is at the beginning, the 1,000 will be generating interest right away.
So even the 500 at the beginning will have a slightly higher rate, it cwon't compensate the 1,000 upfront.
Answer:
if the firm processes A and B into X and Y, it will lose $25
Explanation:
total costs of producing product A and B = $90 (common input) + $36 (processing) = $126
selling price of A and B = $53 + $113 = $166
profit of selling A and B = $166 - $126 = $40
if A and B are processed further, the cost of X and Y = $126 + $33 + $66 = $225
selling price of X and Y = $80 + $160 = $240
profit of selling X and Y = $240 - $225 = $15
if the firm processes A and B into X and Y, it will lose $40 - $15 = $25
Answer:
While a property is under a contract for deed, the buyer or vendee takes possession of the property and makes timely payments of principal and interest. At the end of the term, the vendee obtains a loan and uses the funds to pay-off the vendor. Given these circumstances, the seller may choose to repurchase the property after conveying title.
Explanation:
The seller has an option of repurchasing the property after conveying title.This is because the contract is under deed in which the buyer has taken possession and makes timely payments of principal and interest. Moreso, the title to the property is vested in the buyer since he as paid-off the vendor in full.
Answer:
The given costs and classification are;
Cost 
Classification
a. Automobile engine Direct Material cost
b. Brake pads Direct Material cost
c. Depreciation of robotic assembly line equipment Factory overhead cost
d. Glass for front and rear windshields Direct Material cost
e. Safety helmets and masks for assembly line workers Factory overhead cost
f. Salary of quality control inspector Factory overhead cost
g. Steering wheel Direct Material cost
h. Tires Direct Material cost
i. Wages of assembly line workers Direct labor cost
Explanation:
Direct material cost is the total cost of the materials with which the product is manufactured
Direct labor costs are the total cost of the wages and salaries which the workers directly involved in the production of the goods or the rendering of the service receive
Factory overhead is the operational cost of the production facility that are not directly related to the output or produced materials. Factor overhead are all the other costs excluding the direct labor and material costs.
