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3 years ago

If profit per unit equals (price - cost per unit) and costs are temporarily fixed, then the aggregate supply curve will have

1 answer:

5 0

<span>If profit per unit equals (price - cost per unit) and costs are temporarily fixed, then the aggregate supply curve will have a positive slope. From the equation that the profit per unit is equal to price minus by the cost per unit meaning that as prices rises and more output is produced. In doing so, as the effect of more output corresponding to an increase in price with a slope rising to the right depends on the response of the costs.</span>

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3 years ago

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3 years ago

Allen Boating Company manufactures special metallic materials and decorative fittings for luxury yachts that require highly skil

jek_recluse [69]

Answer:

Direct material quantity (efficiency) variance= $60,500 unfavorable

Explanation:

Giving the following information:

Standards:

Direct materials: 1 pound per unit; $ 11 per pound

Allen produced 2,000 units during the quarter.

Direct material used= 7,500 pounds

To calculate the direct material efficiency variance, we need to use the following formula:

Direct material quantity (efficiency) variance= (standard quantity - actual quantity)*standard price

standard quantity= 2,000*1= 2,000 pounds

Direct material quantity (efficiency) variance= (2,000 - 7,500)*11

Direct material quantity (efficiency) variance= $60,500 unfavorable

It is unfavorable because the company used more materials that estimated to produce 2,000 units.

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3 years ago

In an open-market operation, the Fed buys $10 million of government bonds from individual investors. If the required reserve rat

Fittoniya [83]

Answer:

$100 million ; $10 million

Explanation:

Required reserve ratio (r) = 10%

Worth of bond = $10,000,000

The smallest increase can be thought of as being the $10million generated from open market operation and could be held by the bank as reserve.

To calculate the largest increase in deposit:

Money multiplier * deposit (worth of bond)

Money multiplier = (1 / reserve ratio)

Money multiplier = (1 / 0.1) = 10

Increase in deposit = 10 * $10,000,000 = $100,000,000 ( $100 million)

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3 years ago

The Keynesian LRAS Curve is composed of three phases. The LRAS Curve is nearly vertical in the third phase. What does this mean?

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C.

This is because all resources are almost being used and to their full potential, therefore there are few idle resources and thus is efficiency.

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3 years ago