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3 years ago

What is a commodity?

Business

1 answer:

BabaBlast [244]3 years ago

3 0

The correct answer is D. Something of value that can be bought, sold, or traded

Explanation:

The word "commodity" is used in economics to refer to any good or product that has an economic value and due to this, can be part of the market. This means any commodity can be traded, sold, or bought. Moreover, this concept is mainly applied to raw materials such as coal, timber, or wheat that can be used to make other manufactured products such as plastics, furniture, or flour. According to this, the option that correctly describes the word commodity is option D.

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Chester has negotiated a new labor contract for the next round that will affect the cost for their product Cozy. Labor costs wil

liubo4ka [24]

Answer:

See below

Explanation:

The above is an incomplete question. The concluding parts are assuming the following;

Selling price per unit = $54

Current total variable cost = $24.50

Total fixed cost = $69,000

New variable cost will increase by ($2.26 - $1.76)/2 = $0.25

New variable cost will be = ($24.50 + $0.25) = $24.75

Contribution margin = ($54 - $24.75) = $29.25

New fixed cost = ($0.25 × 2,339) + $69,000 = $69,585

Note:

Old break even units = $69,000/$29.5 = 2,335 units

Therefore,

New break even units

= Fixed cost/Contribution margin per unit

= $69,585/$29.5

= 2,397 units

Cozy would have to sell 2,397 units as opposed to 2,335 units in order to break even.

5 0

3 years ago

Ben is exhausting his money income consuming products A and B in such quantities that MUa/Pa = 6 and MUb/Pb = 4. Ben should purc

yaroslaw [1]

Answer:

Option (a) is correct.

Explanation:

Given the marginal utility per dollar for the two products as follows:

$\frac{MU_{a} }{P_{a} } =6$

$\frac{MU_{b} }{P_{b} } =4$

All the individuals wants to maximize their utility that is obtained from the consumption of goods. We can see that marginal utility per dollar of product A is higher than the marginal utility per dollar of product B which means that this consumer should purchase more quantity of product A and less quantity of product B.

It is going on until the point at which marginal utility per dollar of both the products becomes equal.

6 0

3 years ago

Global Traders is offering 130,000 shares of stock to the public in a general cash offer. The offer price is $38 a share and the

Stella [2.4K]

Answer:

correct option is b. $3,679,800

Explanation:

given data

offering = 130,000 shares

offer price = $38

underwriter spread = 8 percent

administrative costs = $865,000

solution

we get here Net proceeds from sale that is express as

Net proceeds = Gross proceeds - Underwriter's spread - Administrative costs ....................1

here Gross proceeds from sale is = offering share × offer price

Gross proceeds from sale is = 130000 × $38

Gross proceeds from sale is = $49,40,000

and Underwriter's spread will be offering share × offer price × underwriter spread %

Underwriter's spread = $49,40,000 × 8%

Underwriter's spread = $3,95,200

so Net proceeds will be

Net proceeds = $49,40,000 - $3,95,200 - $865,000

Net proceeds = $3,679,800

so correct option is b. $3,679,800

7 0

3 years ago

Fiscal policy may end up being destabilizing to an economy because:___________

Drupady [299]

Answer:

D. The economy is almost always at full employmeny.

Explanation:

ʜᴏᴘᴇ ᴛʜɪꜱ ʜᴇʟᴘꜱ! ♡

8 0

3 years ago

You believe that the Non-Stick Gum Factory will pay a dividend of $2 on its common stock next year. Thereafter, you expect divid

Ivan

Answer:

$28.57

Explanation:

Dividend growth model can only be used in a situation where the firm pays a dividend which can tend to grow at constant rates reason been that the stock has been influenced by the growth rates which is involved in the dividends which means the firm can increase the dividends.

Therefore the Dividend that is to be paid next year will be:

$2Growth rates

5 %Rates of return

12% Return on Investment

Formular for the calculation of current price of the stock = D1/(r-g)

Where:

D1=2%

r=12%

g=6%

Hence:

2/ (0.12-0.05)= $ 33.33

=2/0.07

=$28.57

Therefore the amount I should be prepared to pay for the stock today will be $28.57

4 0

3 years ago