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3 years ago

What do economists call the shift of the entire curve?

1 answer:

5 0

Economists call this a change in demand as the curve is directly linked to the demand of the product. When the demand goes up or down the curve moves left or right accordingly.

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The term "equity carve-out" refers to the situation where a firm's managers give themselves the right to purchase new stock at a

mash [69]

Answer:

b. False

Explanation:

Equity carve- out is an investment strategy executed by corporations. It involves a company selling minority shares through an Initial Public Offerring (IPO) to the external investors with an objective of partially divesting their subsidiaries or business units . This way, the management would retain majority stake and control over the parent company and sell limited shares of its division to the public.

6 0

3 years ago

Harvey quit his job at State University, where he earned $45,000 a year. He figures his entrepreneurial talent or forgone entrep

ANEK [815]

Answer:

$60,000

Explanation:

Calculation to determine what The implicit costs of Harvey's firm in the first year were

First step is to calculate the Total revenue

Total revenue = 11000 × $75

Total revenue=$825,000

Second step is to calculate the Explicit cost

Explicit cost = 11000 × $55

Explicit cost= $605,000

Third step is to calculate the profit

Profit = $825,000-$605,000

Profit=$220,000

Now let calculate the Implicit cost

Using this formula

Implicit cost =Profit-(Amount earned per year +Forgone entrepreneurial income+Bond at 10% interest per annum)

Let plug in the formula

Implicit cost=$220,000-[$45,000+$5,000+($100,000+10%*$100,000)]

Implicit cost=$220,000-[$45,000+$5,000+($100,000+$10,000)]

Implicit cost=$220,000-($45,000+$5,000+$110,000)

Implicit cost=$220,000-$160,000

Implicit cost=$60,000

Therefore The implicit costs of Harvey's firm in the first year were $60,000

3 0

3 years ago

The Laresen Company uses the machine hour method of applying factory overhead to production. The budgeted factory overhead last

Pani-rosa [81]

Answer:

Total cost= $1,375

Explanation:

Giving the following information:

The budgeted factory overhead last year was $200,000, and there were 40,000 machine hours budgeted.

Job 84:

Direct materials= $900

direct labor hours= 25

Direct labor cost= $350.

First, we need to calculate the manufacturing overhead rate based on direct labor hours:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 200,000/40,000= $5 per direct labor hour

Now, we can calculate the total cost:

Total cost= direct material + direct labor + allocated overhead

Total cost= 900 + 350 + 5*25= $1,375

6 0

3 years ago

Q 5.7: Hale Company sells merchandise on account for $1,000 to Long Company with credit terms of 2/10, n/30. Long Company return

Ghella [55]

Answer:

Ans. The amount of the check is $784

Explanation:

Hi, from the initial balance of $1,000, we have to substract the returned merchandise, which was $200, therefore, Long Company owes Hale Company, $800 if Long Company pays within day 11th to 30th of the day of purchase. Since Long Company plans to pay within the first 10 days from the date of purchase, they would be granted a 2% discount on their remaining balance, therefore, the amount that Long Company has to write the check for is:

$Check=Remaining Balance*(1-Discount)$