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3 years ago

Which is true regarding elasticity of supply ?

Business

1 answer:

sergij07 [2.7K]3 years ago

6 0

Answer:

A factor in supply elasticity is production difficulty

Explanation:

The quantitative relation between price of products and its commodity is established by the elasticity of supply. The longer the time period that an organization is allowed to adjust its production targets, the more the supply price becomes elastic. Availability of resources is one of the factor, because the resource will become increasing expensive which consequently increase the price of the products and its production.

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An argument for trade tariffs is that it protects infant industries.

3241004551 [841]

Answer:

The infant industry argument is an economic rationale for trade protectionism. The core of the argument is that nascent industries often do not have the economies of scale that their older competitors from other countries may have, and thus need to be protected until they can attain similar economies of scale.

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2 years ago

Identify the trade-restraining practice that this example demonstrates. Two retailers decide that they will both sell no more th

Sav [38]

Answer:

The right approach is "Controlling output".

Explanation:

Correlation between these two retailers starts deciding that they would rather whether to sell no upwards of hundred TV premium increases for every month throughout order to ensure the highest TV appearance.
This seems to be essentially successful when something is necessary to maintain this same inventory but instead influence the suitable provision including its corporation as well as to create pricing power by offering to buy a small share of the economy.

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3 years ago

Mortar Corporation acquired 80 percent of Granite Corporation's voting common stock on January 1, 20X7. On December 31, 20X8, Mo

Lubov Fominskaja [6]

Answer:

The debit adjustment to equipment would be $30,000.

Explanation:

Amount received for the equipment by Mortar from Granite - $370,000

Purchase price of the equipment = $400,000

Debit adjustment to equipment = Purchase price of the equipment - Amount received for the equipment by Mortar from Granite = $400,000 - $370,000 = $30,000

Therefore, the debit adjustment to equipment would be $30,000.

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3 years ago

Scarbrough Corp. factored $600,000 of accounts receivable to Duff Corp. on October 1, year 2. Control was surrendered by Scarbro

Virty [35]

Answer:

Scarbrough will receive and record cash of $538,685

The journal entry to record this transaction would be:

Debit Credit

Cash $2,900,300

Interest Expense $89,700

Notes Payable $2,990,000

Debit Cash for $2900300, debit Interest Expense for $89700, and credit Notes Payable for $2990000

Explanation:

In order to calculate the amount Scarbrough will receive and record cash we would have to make the following calculation:

Scarbrough will receive and record cash=Receivables-Amount of the hold back-Withheld as fee income-Less: Withheld as interest expense

Receivables= $600,000

Amount of the hold back=$600,000 x 5%=$30,000

Withheld as fee income=$600,000 x 3%=$18,000

Withheld as interest expense=$600,000 × 15% × 54/365=$13,315

Therefore, Scarbrough will receive and record cash=$600,000- $30,000-$18,000-$13,315=$538,685

Scarbrough will receive and record cash of $538,685

According to the given data to journal entry to record this transaction would be the following:

Debit Credit

Cash $2,900,300

Interest Expense $89,700

Notes Payable $2,990,000

Interest Expense=$2,990,000 x 3%=$89,700

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3 years ago

you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar)

timama [110]

Question

you are a consultant to a firm evaluating an expansion of its current business. The cash flow forecasts (in millions of dollar) for the project as follows:

Year cashflow

0 -100

1-10 15

0n the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.30. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 15% what is the net present value of the project

Answer:

NPV= -$32.58

Explanation:

The net present value of the investment is the cash inflow from the investment discounted at required rate of return. The required rate of return can be determined using the the formula below:

Ke= Rf +β(Rm-Rf)

Ke =? , Rf- 5%,, Rm-15%, β- 1.30

Ke=5% + 1.30× (15-5)= 18%

The NPV = Present value of cash inflow - initial cost

= A×(1-(1+r)^(-10)/r - initial cost

A- 15, r-18%

NPV = 15× (1-1.18^(-10)/0.18 - 100= -32.58

NPV = -$32.58

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3 years ago