Answer:
The number of firemen employed will decrease while the wage of firemen will decrease
Explanation:
In an economy when there is an alternative or substitute that enters the market it results in reduction of demand for that product because some consumers will go for the other good.
In this scenario where building codes change to require firewalls and sprinklers to be included in all new construction, there will be a reduction in the demand for firemen. So number of firemen employed will be less.
This is because there is an alternative to using firemen now (firewalls and sprinklers).
Supply of firemen will remain the same, so more people are now competing for less jobs.
They will be more willing to take less wages than before so wages will reduce.
Answer: low (near 0%)
Explanation:
The expected monetary value(EMV) simply refers to the amount of money that an economic agent can expect to make based on a particular decision that's made.
It should be noted that the likelihood that a decision maker will be able to receive a payoff that is exactly as thesame as the EMV when a decision is being made will be near to zero as it's very low that it'll happen.
Answer:
0.76%
Explanation:
Firstly we write out the production function to be
Y = K^0.34L^0.42.
So if we have inputs that are increased by 1%, we will now have a new production function which is
Y = (K + 0.01 of K)^0.34 (L + 0.01 of L)^0.42
We write this in terms of growth rate
The Growth rate of Y = 0.34 x the growth rate of K + 0.42 x the growth rate of L
This gives us the Growth rate of Y = 0.34 x 1% + 0.42 x 1%
= 0.34+0.42
= 0.76%
Answer:
B. Historical cost principle
Explanation:
In accounting, historical cost principle indicates that a business or an organization must record and account for both assets and liabilities at their purchase or buying price. In points that during bookkeeping, while recording the worth of an assets, the purchase price used in buying it must be recorded. Here, Lisa bought the building for $35000 but recorded $50000 because she believes that to be the real value. By doing so, lisa has violated the historical cost principle concept.
This situation is known as cannibalization. Cannibalization is a marketing strategy that refers to the reduction company's see in there sales volume, revenue or market share of a current product when they release a new product. When a company releases a new product, those who are fans of their other products will likely try the new product instead of the hold which initially brings down the volume they sell and make from the initial product.
