Answer:
C. the firm should produce if its price exceeds average variable cost.
Explanation:
WHen average total cost is less that price, this means you are making a profit, and since they are in the equilibrium sate with Margina revenue being equal to marginal cost, they are in the sweet spot of production, so the only thing left for them is producing if its price exceeds average variable cost, and that would maximize their profits.
Answer:
274.7%
Explanation:
The total amount that Eric will borrow will be = 43114311+33503350+13391339 = 90009000.
Now to calculate WACC, we will apply the WACC formula:
WACC = (43114311/90009000)*0.66 + (33503350/90009000)*0.88 + (13391339/90009000)*14.14
Hence,
WACC = 274.74%
The solution was very simple, we just applied the WACC formula by taking the total amount of debt in the denominator of each of the loans taken and multiplied it by the interest rate on which it is taken.
Hope this helps, although I think the values in the question are not correct, but nonetheless I have provide the correct solution according to the given values.
Thanks.
My best guess is A because they maintain high tariffs on the agriculture custom many developing countries export.
Answer:
C. debit cash, credit premium on bonds payable and bonds payable
Explanation:
Since the contract rate is greater than the market rate, the bond is issued at a premium. And, the journal entry is shown below:
Cash A/c Dr XXXXX
To Premium on bonds payable A/c XXXXX
To Bonds payable A/c XXXXX
(Being bond is issued at a premium is recorded)
When the bond is issued at a premium, we debited the cash account and credited the premium on bonds payable and bonds payable account
Answer:
2. (i) demand-side; (ii) both; (iii) supply-side; (iv) supply-side; (v) both
Explanation:
a. $1,000 per person tax reduction ⇒ focus on aggregate demand (more money for consumers to spend)
b. a 5% reduction in all tax rates ⇒ focus on both aggregate demand and supply (more money for consumers and suppliers)
c. Pell Grants, which are government subsidies for college education ⇒ focus on aggregate supply (more money for suppliers of college education)
d. government-sponsored prizes for new scientific discoveries ⇒ focus on aggregate supply (more money for suppliers of new scientific discoveries)
e. an increase in unemployment compensation ⇒ focus on both aggregate demand and supply (more money for consumers resulting in higher prices and lower output)
