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3 years ago

When the current price of an item is greater than the item's market clearing price:_________.

Business

1 answer:

irina1246 [14]3 years ago

4 0

Answer:

C) quantity supplied is greater than the quantity demanded.

Explanation:

We need not be confused, the market-clearing price is referring to the equilibrium price. Thus, if the current price is above the market-clearing price (that is, the price at which quantity demanded equals quantity supplied), it means the quantity supplied is greater than the quantity demanded of the item.

For example, at a price of $1 per orange, there's an equal amount in quantity demanded and quantity supplied of orange. However, the price increases to $2 per orange; which makes the current price of an orange greater than the market-clearing price of $1.

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Marston Manufacturing Company is considering a project that requires an investment in new equipment of $3,600,000, with an addit

Lorico [155]

Answer:

These are the missing multiple choices:

a. $3,780,000, b. $4,212,000, c. $720,000

The correct option is A,$3,780,000

Explanation:

The total cost of Martson's new equipment comprises of the invoice price of the equipment of $3,600,000 plus the cost of installation and shipping costs of $180,000.

The rationale for the shipping and installation is that costs of asset should include costs incurred in bringing the asset to its present location and condition such as installation and shipping costs.

The costs of the assets is $3,780,000($3,600,000+$180,000)

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3 years ago

Let's say there's a company that can fully tax deduct the interest on its loans. If this company borrows more, then the discount

umka21 [38]

Answer:

High

Low

Explanation:

When a company borrows funds it has opportunity to avail tax shield on the interest amount of the borrowing fund. If the company borrows more fund then the discounted value of tax shield will increase while the financial distress cost will decrease.

5 0

3 years ago

3. Categories of expenditures Edison and Hilary Girard live in Swarthmore, PA. Hilary's father, Kevin, lives in Sweden. For each

Ksivusya [100]

Answer:

Explanation:

1. Hilary's father in Sweden orders a bottle of Vermont maple syrup from the producer's website: included in U.S exports (X) account because it produced in the U.S soil.

2. Hilary gets a new video camera made in the United States: included in Consumption (C) account.

3. Edison's employer upgrades all of its computer systems using U.S.-made parts: included in the Investment (I) account because it is capital expenditure.

4.The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore: included in government purchases (G) account because Pennsylvania repaves are paid by the state of Pennsylvania.

5 .Edison buys a sweater made in Guatemala: included in Imports (M) account because it is consumed in U.S soil but not produced there.

8 0

3 years ago

It is estimated that the maintenance cost on a new car will be $500 the first year. Each subsequent year, this cost is expected

Vsevolod [243]

Answer:

$-8,609

Explanation:

Calculation for How much would you need to set aside

Year Cashflows PVF 5% Present values

1 -500 *0.952381 =-476.19

2 -650(500+150) *0.907029 =-589.569

3 -800(650+150) *0.863838 =-691.07

4 -950(800+150) *0.822702 =-781.567

5 -1100(950+150) *0.783526 =-861.879

6 -1250(1100+150) *0.746215 =-932.769

7 -1400(1250+150) *0.710681 =-994.954

8 -1550(1400+150) *0.676839 =-1049.1

9 -1700(1550+150) *0.644609 =-1095.84

10 -1850(1700+150) *0.613913 =-1135.74

PV=Present value $-8,609

Therefore the amount you will need to set aside is $-8,609

7 0

3 years ago

The Good Chocolate Company makes a variety of chocolate candies, including a 12-ounce chocolate bar (340 grams) and a box of six

joja [24]

Answer:

A) ≈ 3.509 grams

B) The process is not capable because the lowest Cpk which is 1.89 ≈ 1.9 is far from the ideal 1.33 capability index number ( NO )

c) 1.051 ounces

Explanation:

A) The largest standard deviation ( in grams)

This can be calculated applying the capability index formula and according to the capability index formula the value at which a process is capable is at : 1.33

hence the largest standard deviation = upper limit - lower limit / 6 * 1.33

( 354 - 326 ) / 7.98 = 3.5087 ≈ 3.509 grams

B) we first calculate the process mean and std of the box

standard deviation = $\sqrt{variance }$

std of the six-bar box = $\sqrt{6*0.86^2}$ = 2.106

process mean = 6 * ( 1.03 * 28.33) = 175.079

the mean is not centered between the upper specification and the lower specification hence we will apply the formulae used in calculating the capability index for an uncentered process

Cpk = (upper value - process mean) / (3 * std of box),

= (187 - 175.079) / ( 3 * 2.106) = 11.921 / 6.318 = 1.89

Cpk = (process mean - lower value ) / (3*std of box)

= ( 175.079 - 153 ) / (3 * 2.106) = 22.079 / 6.318 = 3.49

The process is not capable because the lowest Cpk which is 1.89 ≈ 1.9 is far from the ideal 1.33 capability index number ( N0 )

c ) lowest setting

calculate the value of the mean using capability index of 1.33

Cpk = (upper value - mean ) / 3 * std

mean = 187 - 1.33 * 3 * 2.106

= 187 - 8.40 = 178.60 grams

Cpk = ( process mean - lower value ) / 3 * std

mean = 1.33 * 3 * 2.106 + 153

= 8.40 + 153 = 161.40 grams

the lowest setting in ounces

= 178.60 / ( 6 bar * 28 .33)

= 178.60 / 169.98 = 1.051 ounces

5 0

3 years ago