Answer: (a) $325,000
(b) $1,150,000
Explanation:
(a) For Music world retail:
Cost of goods sold = Goods available for sale - Ending merchandise inventory
= (Beginning merchandise inventory + Cost of purchases) - Ending merchandise inventory
= ($200,000 + $300,000) - $175,000
= $500,000 - $175,000
= $325,000
(b) For Wave-Board Manufacturing:
Cost of goods sold = Goods available for sale - Ending finished goods inventory
= (Beginning finished goods inventory + Cost of goods manufactured) - Ending finished goods inventory
= ($500,000 + $875,000) - $225,000
= $1,150,000
Answer: excess demand, underestimate
Explanation:
P= 1200 - 2Q
300= 1200 - 2Q
2Q = 1200 -300
2Q = 900
Q = 900/2
Q = 450
Quantity demanded is 450 units
Quantity supplied Q - P = 300
Excess demand = 450 - 300 = 150
The policy will lead to excess demand of 150 per month.
P= 1200 - 2Q
P= 1200 - 2(300)
= 1200 - 600
= 600
Willing to pay price is $600.
Deadweight loss = 0.5 × (Price buyers are willing to pay - ceiling price) × (market quantity supplied - ceiling quantity supplied)
= 0.5(600-300)(400-300)
= 0.5(300)(100)
= 15000
Deadweight loss is $15000
The welfare loss underestimate the actual loss
Answer:
b. comparative advantage
Explanation:
Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
Simply stated, it is the cost of not enjoying the benefits, profits or value associated with the alternative forgone or best alternative choice available.
For example, if you decide to invest resources such as money in a food business (restaurant), your opportunity cost would be the profits you could have earned if you had invest the same amount of resources in a salon business or any other business as the case may be.
In this scenario, Farmer Jane's opportunity cost of producing corn is lower than Farmer John's, therefore, she has a comparative advantage in producing corn.
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
Hence, the comparative advantage gives an individual or country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
Answer:
$5,896,778
Explanation:
The computation of the increase value in the liabilities section is shown below:
= Present value of the first liability due in one year + Present value of the second liability due in three years
= $1,388,889 + $4,507,889
= $5,896,778
For computing the increase value in the liabilities we simply added the present value of two liabilities given in the question
Answer:
$ 532
Explanation:
<em>C= cost per person
</em>
<em>N= number of people
</em>
<em>TC= total cost
</em>
<em>
</em>
TC= ( 46 * N ) - ( N * ( N - 1 ) )
C= <u>( 46 * N ) - ( N * ( N - 1 ) )</u>
N
TC = ( 46*19 ) - ( 19 * ( 19-1 ) )
TC = ( 874 ) - ( 19 * 18 )
TC = 532
<u>Total Cost for 19 people</u> : $ 532
N° $
1 46
2 44
3 42
4 40
5 38
6 36
7 34
8 32
9 30
10 28
11 26
12 24
13 22
14 20
15 18
16 16
17 14
18 12
19 <u> 10
</u>
<em><u>Total: 532
</u></em>
