Answer:
Method 1 should be chose, since it is still the cheapest if labor cost rises to $200/unit.
Explanation:
Total Cost = ( units * labor costs) + (capital cost * units of labor)
Total Cost for Method 1 : (50 * 100) + (10*400)
= $9,000
Total Cost for Method 2 : (20 * 100) + (40*400)
= $18,000
Total Cost for Method 3 : (10 * 100) + (70*400)
= $29,000
If the price of labor rises to $200 then:
Total Cost for Method 1 : (50 * 200) + (10*400)
= $14,000
Total Cost for Method 2 : (20 * 200) + (40*400)
= $20,000
Total Cost for Method 3 : (10 * 200) + (70*400)
= $30,000
Answer:
D
Explanation:
When interest rate is above the equilibrium level, people would be less willing to hold cash. Instead they would prefer to save or invest in interest-bearing bonds. This is because as a result of the higher interest rate, interest paid on their deposit and investment would be higher.
As a result of the increase in savings, there would be an increase in the supply of loanable funds over demand for loanable funds. This would lead to a reduction in interest rate until equilibrium interest rate is reached.
Agriculture - This economic activity is ubiquitous in both traditional and modern markets. Since the Neolithic period, humans have domesticated different crops and animals for human consumption. However, in traditional economies, agriculture is less mechanized than in modern markets. Nevertheless, the basic production of crops and animals in traditional markets is fundamentally the same as mechanized production of the same in modern markets.
Answer:
A. The definition of a market in determining the price elasticity of demand.
Explanation:
Price elasticity of demand is the height of responsiveness of demand or purchase to changes in price. It shows how consumers or buyers would react to the demand for a product when the price of their favourite brand increases.
Reaction of consumers in the market place is one of the determinants of price elasticity of demand. It tells how buyers will switch to different brand of products if the price of their favourite brand increases. It also shows how consumers will adjust their spending abilities if the price of all the brands are increased at the same time.
Alternatively, consumers would demand for the brand that falls within the limit of their spending.
Answer:
B) 1.20
Explanation:
To find the current ratio we will divide current assets with current liabilities and find the quick ratio we just need to deduct inventory and prepaid expense from current assets in the same current ratio formula.
Data
Current assets = $7,900
Prepaid rent = $898
Inventory = $2,200
Current liabilities = $4,000
Solution
Current ratio = current asset/curremy liability
Current ratio = $7900/$4000
Current ratio = 1.975
Quick ratio = current asset - Inventories -prepaid rent / current liability
Quick ratio=$7,900-$2,200-$898/$4,000
Quick ratio = 1.20
