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Vinil7 [7]
3 years ago
10

Part of the decision to accept additional business should be based on a comparison of the incremental (differential) costs of th

e added production with the additional revenues to be received.
True or False
Business
1 answer:
postnew [5]3 years ago
6 0

Answer:

TRUE

Explanation:

Marginal Benefit is addition to total benefit due to a business decision.

Marginal Cost is addition to total cost due to a business decision.

Marginal Benefit & Marginal Costs are determinants while considering a business decision. A decision will be taken if : Marginal Benefit ≥ Marginal Cost, as entrepreneurial decision maker would be better off or at least neutral while taking decision. If MB < MC , it is loss making for the entrepreneur to take that decision & hence is discouraged to take that.

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blondinia [14]
Don’t trust my word I just need to answer questions i’m so sorry
4 0
3 years ago
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frez [133]

Answer:

Dun. Mark brainliest plz

Explanation:

4 0
2 years ago
In the country of Wiknam, the velocity of money is constant. Real GDP grows by 3 percent per year, the money stock grows by 8 pe
vaieri [72.5K]

Answer:

(a) 8%

(b) 5%

(c) 4%

Explanation:

According to the classical quantity theory of money,

Money supply × Velocity = Price Level × Real GDP

Money supply denoted by M

Velocity is denoted by V

Price level is denoted by P

Real GDP is denoted by Y

Therefore,

Change in M + Change in V = Change in P + Change in Y

Since, we know that V is constant, so V = 0

∴ Change in M = Change in P + Change in Y

(a) Nominal GDP = Price × Real GDP

Change in P + Change in Y = Change in Nominal GDP = Change in M

Change in M = 8%, it is given in the question.

Therefore, Change in Nominal GDP = 8%

(b) Change in M = Change in P + Change in Y

      8% = Change in P + 3%

Change in P = 8% - 3%

                     = 5%

We know that change in price level is the inflation rate. Hence, the inflation rate is equal to the 5%.

(c) Real interest rate is the difference between the nominal interest rate and  the inflation rate.

Real interest rate = Nominal interest rate - Inflation rate

                             = 9% - 5%

                             = 4%

6 0
3 years ago
If a coconut is a normal good and the price of coconuts increases, then the movement that would take place in the model could be
masya89 [10]

If a coconut is a normal good and the price of coconuts increases, then the movement that would take place in the model could be B to A.

<h3>What happens when prices rise?</h3><h3 />

For Normal goods, a rise in prices would mean a fall in the quantity demanded. This is shown by the demand curve which shows the relationship between the quantity demanded and price.

When there is a price change, the movement will be along the demand curve which means that the demand curve would see a movement from Point B to Point A for coconuts.

Find out more on price changes and the demand curve at brainly.com/question/1139186

#SPJ1

8 0
1 year ago
A stock will pay no dividends for the next 5 years. Then it will pay a dividend of $5 growing at 2%. The discount rate is 10%. W
jok3333 [9.3K]

Answer:

$38.81

Explanation:

The value of the stock is the present value of its future divided payments, bearing in mind that the first dividend is payable six years from,hence, the present value of dividend in year 5( a year before its payment) is then computed thus:

PV of dividend at the end of year 5=expected dividend/discount rate-growth rate

expected dividend in year 6=$5

discount rate=10%

growth rate=2%

PV of dividend at the end of year 5=$5/(10%-2%)

PV of dividend at the end of year 5=$62.50

We need to discount the PV backward by 5 years to show the stock value today

the current stock price=$62.50/(1+10%)^5

the current stock price= $38.81  

8 0
2 years ago
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