Answer:
c. The market equilibrium price for televisions maximizes the total welfare of television buyers and sellers.
Explanation:
Welfare economics by definition , is the study of how various allocation of resources affects economic well-being of buyers, seller and community at large. This study seeks to evaluate economic policies and determines their effects on the well-being of buyers and sellers. It assumes that an efficient allocation can be attained by a competitive equilibrium, given the market mechanisms that cause redistribution. However, the tools of welfare economics are not reliable when markets are inefficient.
Answer:
the company should enter into a forward contract.
Explanation:
Based on the information provided within the question it can be said that the in order to achieve this the company should enter into a forward contract. This is a type of contract entered by two parties in which one is obligated to buy while the other is obligated to sell at a fixed price and at a future date regardless of changes in circumstances or economy. Therefore reducing the market risk that they buyer is exposed to.
Answer: (B) The school of ethical universalism
Explanation:
The ethical universalism is on of the type of ethical based concept in which their is one of the common moral agreement about the right and the wrong action on the basis of the given behavior across the various types of countries.
The importance of the ethical universalism is to provide the justice of equal right among all the people in the society and each person are treated in equal manner.
According to the given question, the school of ethical universalism is one of the common ethical standards which is used to judge the different types of cultural circumstances and the variety of markets. Therefore, The given cultural circumstances is basically defining the beliefs of the ethical universalism.
Therefore, Option (B) is correct answer.
Answer:
the process of deciding which project to do to increase the firm’s value.
Explanation:
Some of the Capital budgeting methods include:
1. internal rate of return- internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
2. Cash pay back period- it is the period it takes to recover the amount invested in a project from its cummulative cash flows.
3. Net present value: net present value is the present value of after tax cash flows from an investment less the amount invested.
I hope my answer helps you
Answer:
The net income of the firm for the year is $531,960
Explanation:
Income before tax of Sandifer Manufacturing Co. (taxable income) = Revenues - Cost of goods sold - Operating expenses = $4,580,000 - $3,321,000 - $453,000 = $806,000
Tax liability equal to 34 percent of the firm's taxable income.
The amount of tax the firm had to pay = $806,000 x 34% = $274,040
Net income = Income before tax - Tax liability = $806,000 - $274,040 = $531,960
