1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Asset management ratios are used to measure how effectively a firm manages its assets, by relating the amount a firm has investe
gtnhenbr [62]

Answer:

Crawford Construction

1. Crawford Construction sold and replaced its inventory:

a. 4.14 x

2. With Construction Industry Inventory Turnover Ratio as 4.55x, Crawford Construction:

b. Crawford Construction is holding more inventory per dollar of sales compared to the industry average

Explanation:

a) Data and Calculations:

Quick ratio = 2.00x,

Cash = $36,225

Accounts receivable = $20,125

Inventory = x

x= $80,500 - 36,225 - 20,125 = $24,150

Total current assets = $80,500

Total current liabilities = $28,175

Annual sales = $100,000

Using annual sales instead of cost of goods sold to calculate the inventory turnover, = Turnover/Inventory = $100,000/$24,150 = 4.14x

b) Quick ratio equals (Current assets - Inventory)/Current Liabilities.  Computing the quick ratio in place of the current ratio can be used to identify how Crawford Construction can meet its current (short-term) debts without selling inventory and recovering funds from the sale.

c) The Inventory Turnover Ratio divides the cost of goods sold by the average inventory.  The Sales value can approximate the cost of goods sold.  The ratio shows the efficiency of Crawford Construction in handling its inventory.  The higher the value of the ratio, the better, showing that Crawford is more efficient when it gets a higher turnover ratio.

7 0
2 years ago
Dybala Corporation's produces and sells a single product. Data concerning that product appear below The company is currently sel
CaHeK987 [17]

Answer: Increase of $8,200

Explanation:

Currently, the company is making a net operating income of;

= Contribution Margin - Fixed expenses

= (90 * 6,700) - 547,700

= $55,300

If the company advertises, net operating income becomes;

= Contribution margin with increase in sales - Fixed expenses including advertisements

= (90 * (6,700 + 170)) - (547,700 + 7,100)

= $63,500

Increase in operating income = 63,500 - 55,300

= $8,200

6 0
3 years ago
All of the following are examples of fiscal policy except __________.
timama [110]

The given options are all examples of fiscal policy enacted by government except d. lowering the interest rate.

<h3>What is fiscal policy?</h3>

Fiscal policy refers to actions by the government that are meant to improve or constrict economic activity.

They do so by either spending, reducing spending, or altering tax rates. Fiscal policy does not directly influence interest rates as this is done by monetary policy.

Find out more on fiscal policy at brainly.com/question/6583917.

3 0
2 years ago
Which of the following is an example of an unsought good? A. Cameron purchases a new bike. B. Jordan buys paper towels. C. Taylo
NikAS [45]

Answer:

D. Riley buys new windshield wipers for her car.

Explanation:

By definition unsought goods are those which are not purchased out of want or desire, but the purchases of which arise due to any of the following circumstances:

  • danger - for example a fire extinguishers sought in the incident of a fire
  • fear - for example the fear of crashing into another car (in this case)
  • unexpected events - for example funeral services sought at the time of death

4 0
3 years ago
Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, in Cartar,
Volgvan

Answer:

c higher in Aire than in Cartar, and it is higher in Cartar than in Bovina.

Explanation:

As we know that,

Money supply = Saving amount + consumption amount

And, the saving rate would be

= (Saving amount ÷ money supply) × 100

So

For Aire, the saving rate would be

= ($4,000 ÷ $16,000) × 100

= 25%

For Bovina, the saving rate would be

= ($3,000 ÷ $27,000) × 100

= 11.11%

For Cartar, the saving rate would be

= ($10,000 ÷ $60,000) × 100

= 16.66%

5 0
2 years ago
Other questions:
  • Sports Bar and Tasty Bakery are adjacent businesses with adjoining parking lots. Sports Bar offers Tasty a discount on purchases
    15·1 answer
  • The ____ of startup ventures depends heavily on the entrepreneur's personal resources
    5·1 answer
  • Requirement 3. How much manufacturing overhead was incurred during the​ year? Is manufacturing overhead underallocated or overal
    15·1 answer
  • You and your best friend have decided to start a small coffee shop together while in college. Though you have been friends since
    12·1 answer
  • In 1896, the first Green Jacket Golf Championship was held. The winner’s prize money was $160. In 2015, the winner’s check was $
    11·1 answer
  • Livebinders is an example of​ a(n) _______________.
    15·1 answer
  • Accrued sales salaries amount to $1,700. Prepaid selling expenses of $3,000 have expired. A physical count of year-end merchandi
    10·2 answers
  • Our Lady of the Lake Hospital has assembled a group of employees to engage in planning activities. If the group comprises top ex
    8·1 answer
  • Mark, a project manager for a bottling company, has a $500,000 budget. As of today's date, $100,000 has been spent on the projec
    5·1 answer
  • Blissful Blankets' target profit is $520,000. Each blanket has a contribution margin of $21. Fixed costs are $320,000. The numbe
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!