The technology associated with the manufacturing computers has advanced tremendously. This change has led to the price of a computer <u>falling</u> and the quantity <u>increasing</u>.
Lower prices most likely results in a higher demand for the product in question, which will increase the production rate of that product.
Answer:
<u>equity and efficiency</u>
Explanation:
Under the tax system there is no tax on losses. And also the losses can be carried forward and set off to profits in future.
When profits are earned the taxes are paid. After that the remaining profit is either distributed to equity or retained for future purposes.
The more efficiently the company works, higher will be the profit and higher will be the taxes.
As profit is for equity, and from that share the amount is given to tax authorities, which is some part of income, share of equity to tax.
Though it does not provide for right in company, but it is legal to pay the tax.
That is the price you pay for increasing or decreasing efficiency, in the form of income available for equity.
Answer:
The solution to this issue can be defined as follows:
Explanation:
Please find the complete question in the attachment file.
Direct Substances 9
Direct jobs 5
Overhead output variable 5
Overhead of fixed production 
The Unit cost of the item at absorption cost per year 
<span>Contractionary fiscal policy that reduces the budget deficit may INCREASE Business investment by REDUCING interest rates
when interest rates is low, people will feel ENCOURAGED to borrow some money from the bank and invest in the business because they will have lower amount to return.</span>
Answer:
824.28
Explanation:
Market price of a bond is the total sum of discounted coupon cashflow and par value at maturity. This is a 4-year bond with semi-annual payment so there will be 8 coupon payment in total. Let formulate the bond price as below:
Bond price = [(Coupon rate/2) x Par]/(1 + Required return/2) + [(Coupon rate/2) x Par]/(1 + Required return/2)^2 + ... + [(Coupon rate/2) x Par + Par]/(1 + Required return/2)^8
Putting all the number together, we have
Bond price = [(4.5%) x 1000]/(1 + 7.5%) + [(4.5%) x 1000]/(1 + 7.5%)^2 + ... + [(4.5%) x 1000 + 1000]/(1 + 7.5%)^8
= 824.28
