Answer: $14,985
Explanation:
Using the Units-of-Production method means that the asset is depreciated based on how many times it is used.
The formula is;
= ( Cost - Salvage Value)/Total Usage
= (67,600 - 1,000) / 200
= $333 per concert
Equipment depreciates by $333 per concert.
First year has 45 concerts;
= 333 * 45
= $14,985
Answer:
A) decrease MPC, increase MPS, and decrease the multiplier so that changes in planned investment will have a smaller impact on equilibrium output.
Explanation:
When you receive money, e.g. get paid by your employer, the first thing you do is pay for your basic necessities which are classified as autonomous spending. Then hopefully you will have some money left which is classified as disposable income. You can do two things with your disposable income, either spend it or save it.
The proportion that you spend is called the marginal propensity to consume (MPC) and the remaining part that you save is called the marginal propensity to save (MPS). If the MPS was 1% in 2007 and increased to 5% in 2009, then the MPC was 0.99 in 2007 and 0.95 in 2009.
The formula to calculate the economic multiplier is 1 / MPS:
- the economic multiplier in 2007 = 1 / 1% = 100
- the economic multiplier in 2009 = 1 / 5% = 20
The best answer for this question would be:
<span>c. cost-push inflation
This is a situation in inflation that causes the general prices to rise because that cost of the wages and the raw materials used in the production.And this happens due to the production costs getting higher which decreases in the supply of the economy.</span>
The method that was adopted by the Chinese manufacturers who instead of creating a new product, adopted a different strategy is: Lean manufacturing initiative.
Lean manufacturing initiative is a form of manufacturing where the producer identifies non-value adding activities and initiates measures to systematically eliminate these.
The process is gradual. Most manufacturing organizations adopt this process.
This is the same with the Chinese industries who instead of immediately creating a new product, adopt the strategy of introducing competing products.
Learn more about lean manufacturing initiative here:
brainly.com/question/24155857
Answer:
D) Annuity B has both a higher present value and a higher future value than Annuity A
Explanation:
An annuity which pays a fixed sum at the beginning of the period for a number of years is referred to as Annuity Due.
Whereas, an annuity that pays a fixed sum at the end of a period for a number of years is called Deferred Annuity.
Present value of an annuity due is given by:
Present Value = Amount ×
× (1 + r)
In case of an annuity due, the present value would be more since no discounting is required for the first installment and secondly since the number of years of installments get reduced by 1 unlike in the case of a deferred annuity.
Future Value = Amount of annuity (in case of equal amounts )× Cumulative annuity factor at r% invested for n years.
Thus, in the given case, Annuity B will have both higher present value and a higher future value.