If the marginal propensity to save is 0.2 in an economy, a $20 billion rise in investment spending will increase:

A farm equipment manufacturer has already spent $3 million in research and development to design a new model of tractor. To prod

lina2011 [118]

Answer:

$20,000

Explanation:

Data provided in the question:

Amount spent on research and development = $3 million

Rent = $20 million = $20,000,000

Materials and wages = $10,000 per tractor

Number of tractors to be sold = 2,000

Now,

The lowest price will be when the company attains the break-even

thus,

At break-even point

Total cost = Total revenue

let the lowest cost be 'x'

therefore,

2,000x = $20,000,000 + ( $10,000 × 2,000 )

or

2,000x = $20,000,000 + $20,000,000

or

2,000x = $40,000,000

or

x = $20,000

6 0

3 years ago

In late 2018, malnutrition was widespread in Venezuela. Writing in an opinion column in the New York Times, Javier Corrales a

suter [353]

Answer: B. No. Imposing a price control below the equilibrium price in a market causes the quantity of the good available to consumers to fall because sellers will supply a smaller quantity, thereby causing some consumers to go without food that they would have been able to buy in the absence of the price control.

Explanation:

If price controls are introduced below the equilibrium price in the market, farmers or sellers will supply less to the market because they will not be incentivized to produce more seeing as they are not making what they should be making.

This, coupled with increased demand on account of food being cheaper, will lead to shortages which would mean that those that could have been able to afford the food at the equilibrium price would not be able to access food leading to even worse food shortages.

8 0

3 years ago

On January 1, 2021, Consolidated Company purchased 100% of the common stock Avergy Industries for $720,000. On that date, Avergy

Dahasolnce [82]

Answer:

b. $ 50,000

Explanation:

Investment cost

720000

Book value of net asset

100000

420000

--------------

520000

Excess

200000

Allocated as follows

Land and equipment 50000

overvaluation of bonds payable 40000

Undervaluation of inventory 60000

Total 150000

Un allocated amount

Goodwill 50000

Total 200000

4 0

3 years ago

Common stock can have which of the following characteristics? It can be:_____.

REY [17]

Answer:

d. shareholder voting rights

Explanation:

Cumulative is characteristic of preferred stock, in that dividend not paid in a year is carried forward and to be paid in the future.

When the preferred stock is non-cumulative, the dividend not paid in a year is forfeited.

Preferred stock or debenture can be convertible into a known number of common stock in the future.

The characteristic of common stock is that it entitles its holders to vote on certain major decisions.

4 0

3 years ago

The manager of a certain division at Alpha Manufacturing is evaluated on how efficiently the division uses equipment, buildings,

kumpel [21]

Answer:

Investment center

Explanation:

Investment center is a section of an organization that make use of the amount of capital at their disposal to earn more profit for the company. Their main aim is to generate more revenue for the organization.

This section of the company is solely responsible for the amount of money generated, the costs incurred during the production process and the various benefits realized.

They are accessed according to the amount of money brought into the company through various investments.

In the scenario described above, the manager of a particular section of Alpha manufacturing was evaluated on how the equipments, building and other assets were used to generate profit because they were considered as an investment center.

5 0

3 years ago