Answer:
recessionary gap = 8 billion
so correct option is c) $8 billion
Explanation:
given data
MPC = 0.80
GDP = $40 billion
to find out
the size of the recessionary gap
solution
we get here first Multiplier that is
Multiplier = 
..................1
Multiplier = 
Multiplier = 5
so recessionary gap will be
recessionary gap = 
................2
recessionary gap = 
recessionary gap = 8 billion
so correct option is c) $8 billion
Answer:
Pine Street should sell finished bookcases because they have a higher contribution margin.
Explanation:
We compare the contribution margin of the two categories to find out whether Pine Street should sell unfinished or finished bookcases.
Pine Street Inc.
Unfinished bookcases
Contribution Margin
Sales Price $58.10
Less Production costs
Variable Costs $37.49
<u>Fixed Costs $10.50 (47.99)</u>
<u>Contribution Margin $ 10.11</u>
Pine Street should sell finished bookcases because they have a higher contribution margin. It is almost double of the unfinished book cases contribution margin.
Pine Street Inc.
Finished bookcases
CONTRIBUTION MARGIN
Sales Price $74.91
Less Production costs
Variable Costs $37.49 + $5.79 = $ 43.28
<u>Fixed Costs $10.50 $ (53.78)</u>
<u>Contribution Margin $ 21.13</u>
Answer:
The correct option here is A) marginal cost exceeds marginal revenue
Explanation:
When a company is producing more goods and services, it becomes a bad move because at this point company's marginal cost starts exceeding the marginal revenue , which means with each additional units a company is producing it is losing profit on that unit, so it is better for a company to produce less and try to find that level of output where its marginal cost and revenue are equal because at that level, company would be able to make optimal profits.
Answer:
harassment
Explanation:
Based on the information provided within the question it can be said that this large magnitude of solicitation attempts classifies as harassment. This is because you are aggressively pressuring the potential buyer towards buying the product or service that you are offering through a large quantity of different advertisement methods.
Answer:
12.6%
Explanation:
Using the Capital Market Pricing Model (CAPM) to compute the expected rate of return on Dee's Fashion stock.
Expected rate of return = 
Where R(f) = risk free rate of return, or market return less risk premium = 12.6% - 8.7% = 3.9%
= the risk of the stock relative to the market risk. In this case, beta = 1, since the company is equally as risky as the market (as noted in the question)
R(m) = return of the stock market = 12.6%
Therefore, the expected rate of return on the stock
= 3.9% + 1 * (12.6% - 3.9%)
= 3.9% + 8.7%
= 12.6%.
The return is the same as the stock market return because the stock is equally as risky as the market.
