Answer:
As the U.S. dollar appreciates against foreign currencies, the U.S. AGGREGATE DEMAND curve shifts LEFTWARD resulting in a(n) DECREASE in the U.S. price level and a(n) DECREASE in Real GDP in the United States.
Explanation:
If the US dollar appreciates, it will reduce American exports and increase imports. Since exports fall, the aggregate demand curve will shift to the left. A leftward shift in the AD curve will result in lower total output and a lower price level. Since the price level decreases, exports decrease and imports increase, the real GDP will decrease.
Answer:
Explanation:
Profit maximization objective can easily be manipulated and it is highly subjective. Management may decide to avoid some costs in the short-term such as Investment in Assets, Investment in R &D and other discretionary cost in order to have an impressive profit performance. In the long-run, the avoidance of this cost now may reduce the earnings capacity of the company assets.
Using profit as measure of performance for manager may encourages dysfunctional behavior.
In the true sense, profit generation may not translate into increase in the value of the company . For example, management may decide to reduce depreciation charge, decide to over state revenue or over valued inventory
On other hand, maximizing shareholder value is a long-term and sustainable objective that involved investing in viable projects with positive net present value to enhance the value of the company.
When this is used as a performance measure , it very difficult to manipulate in the short-term.
Answer:
B
Explanation:
The question asks to calculate how much will be disbursed by the company in February.
Firstly , we know that the company disburses 75% in the month of purchase and 25% during the month after purchase.
Now, 75% of $130,000 would be disbursed as February’s own payment:
Mathematically 75/100 * 130,000 = 97,500
Also, we should not forget that the company disburses 25% of previous month during the current. That is 25/100 * 100,000 = 25,000
Total amount disbursed is thus 25,000 + 97,500 = $122,500
Answer:
$0.50
Explanation:
A profit-maximizing monopolist maximizes profit at the point where its marginal revenue (MR) is equal to its marginal cost (MC) (i.e. where MR = MC).
In economics, MR is equivalent to price per unit (P).
Since the profit-maximizing monopolist charged $0.50 per pound of meat, that means P = $0.50.
Since MR = P, it implies that MR = P = $0.50.
Also, since a profit-maximizing monopolist maximizes profit at MR = MC, it implies that MR = P = MC = $0.50.
Therefore, the monopolist's marginal cost must be $0.50.
