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3 years ago

A firm run by a rational entrepreneur would want to hold inventories. True False

1 answer:

4 0

True
Because having inventories would mean the following:
1. Holding Inventory avoids loss of sales
2. Holding Inventory gains quantity discount
3. Holding Inventory reduces order cost 4. Achieve efficient production runs by holding inventory
5. Holding Inventory reduces risk of production shortages

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An increase in the demand for loanable funds will occur if there is A. an increase in the real interest rate. B. an increase in

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Answer:

C, a decrease in the real interest rate

Explanation:

When factors such as changes in expectation, technology, demands for goods and services, etc cause in shift in the demand curve for capital, interest rates act as the determinant of the capital demand.

If the interest rates of loans are high, capital demand will be reduced but in the event that interest rates are low, capital demand is high or increases.

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3 years ago

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Mary-Jo owns a theater. She purchased a new computer to run the accounting software and lighting for the theater. The computer c

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Answer:

The depreciation for 2020 is $233.33

Explanation:

Under the MACRS, computer useful life is 5 years.

The depreciation rate for every year, applying double declining method is: 100% / 5 = 20%. So, depreciation expenses for first year of the computer is calculated as: Cost of the computer x 20% = = 2,000 x 20% = $400.

As the computer is purchased in May, the year 2020 would only account for 7 month out of the first year of depreciation. Thus 2020 depreciation expenses = First year depreciation x 7/12 = 400 x 7/12 = $233.33

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3 years ago

In 2009, Modern Electronics, Inc. produced 60,000 calculators, employing 80 workers, each of whom worked 8 hours per day. In 201

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Answer:

a. Production decreased by 4 percent

Explanation:

In 2009, production: 60,000 units

Hours worked per day: 80x8= 640 hours

Productivity= 60,000/640 hours =93.75 units per day

In 2010: production: 76 500 units

Hours worked per day= 85x10= 850 hours

productivity= 76,500/850= 90 units per day

In 2010, production decreased by 3.75 per day. (93.75-90.00)

percentage decrease= (3.75/93.75) x 100=4

In 2010 production decreased by 4 percent

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3 years ago

Holding other things constant, an increase in the inflation rate in the US compared to China may cause the demand for dollar to

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