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Neporo4naja [7]
3 years ago
5

For the population of firms in the chemical industry, let rd denote annual expenditures on research and development, and let sal

es denote annual sales (both are in millions of dollars).
a. Write down a model (not an estimated equation) that implies a constant elasticity between rd and sales. Which parameter is the elasticity?
b. Write out the estimated equation in the usual form. What is the estimated elasticity of rd with respect to sales? Explain in words what this elasticity means.

Business
1 answer:
Dmitry_Shevchenko [17]3 years ago
6 0

Answer:

See the attached pictures for detailed answer.

Explanation:

See the attached pictures for explanation.

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Iris Company has provided the following information regarding two of its items of inventory at year-end: There are 160 units of
maw [93]

Answer:

$7,840

Explanation:

The inventory of Items A and B should be valued at the lower of cost and the net realizable value.

The cost is the invoice price at time of purchase ,while the net realizable value is the selling price less to sell

Products              Cost          Selling price cost to sell NRV    unit value

   A                         $18               $22                $6     $16             $16

   B                          $48              $54                $4    $50             $48

Item A is valued at $16 each i.e $16*160=$2,560

Item B is valued at $48 each i.e $48*110=$5,280

total value of inventory                             =$7,840

The ending inventory valued at the lower of cost or net realizable value is worth $7,840

6 0
3 years ago
LMN Company produces a product that sells for $1. The company has production costs of $600,000, half of which are fixed costs. A
madam [21]

Answer:

Unitary Contribution margin= $0.6

Explanation:

Giving the following information:

LMN Company produces a product that sells for $1. The company has production costs of $600,000, half of which are fixed costs. Assuming the production and sales of 750,000 units.

Variable cost= 600,000/2= $300,000

Unitary variable cost= 300,000/750,000= $0.4

Unitary Contribution margin= 1 - 0.4= $0.6

Total contribution margin= $450,000

8 0
3 years ago
When you are considering changing careers, it is important to manage the process to achieve your desired outcome.
Svetach [21]
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8 0
3 years ago
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Which of the following is not a function of prices in a market system? Group of answer choices Prices send signals to buyers and
Sedaia [141]

Answer:

Prices ensure an equal distribution of goods and services among consumers.

Explanation:

The price mechanism helps in the efficient allocation of resources. There are a number of functions performed by the price mechanism. Prices send signals regarding resources. An increase and decrease in prices reflect surplus and deficit.  

Price balances the demand and supply of a product. Price is inversely related to demand and positively related to the supply of a product. It is determined by the interaction of demand and supply and helps in balancing supply and demand.  

For instance, an increase in demand would increase the price, this higher price will motivate the suppliers to increase quantity supplied thus balancing demand and supply.  

Price helps in coordinating economic activities and helps buyers and sellers in decision making. However, they do not help in equal distribution of goods and services among consumers.

6 0
3 years ago
PC​ Bell, a computer manufacturer that sells computer systems directly to​ customers, buys a computer chip for ​$150​, software
Stella [2.4K]

Answer:

The price is $1,540      

Explanation:

The reason is that the profit share is $1,100 and the cost includes computer chip, software and printer which are worth $150, $250 and $40.

The price can be calculated using the following formula:

Price - Cost = Profit

Here profit is $1100 and cost is $440 (150+250+40)

By putting the values we have:

Price - $440 = $1100

Price = $1100 + $440 = $1540

6 0
3 years ago
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