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4 years ago

Which of the following illustrates the law of demand?

Business

1 answer:

Tanzania [10]4 years ago

4 0

Answer:

The right answer is, C. Consumers buy more personal computers because prices have fallen.

Explanation:

the price and demand are indirectly proportional, that is, if the price of a good or service increases, therefore its demand will decrease and if the price decreases its demand will increase.

So the point that most illustrates this market activity is point C.

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In the circular flow of income and spending, financial institutions …

sweet-ann [11.9K]

Answer:

1] act as an intermediary between those who have surplus funds and those who have deficit funds.

Explanation:

4 0

3 years ago

g Because of the downward sloping demand curve, a monopolist can increase its revenue is by ________. Group of answer choices on

guapka [62]

Answer:

only increasing price on its goods

Explanation:

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.

An example of a monopoly is a utility company

A natural monopoly occurs due to the high start-up costs or a large economies of scale.

Natural monopolies are usually the only company providing a service in a particular region

Because the demand curve for a monopoly is downward sloping, marginal revenue is less than price. As prices fall, more units of the product are bought.

In a monopoly When the average cost is falling, the marginal cost lies below the average cost. If the government sets price to be equal to marginal cost, which lies below the average cost, the monopoly would incur losses

5 0

3 years ago

The CPI tends to A. estimate inflation correctly. B. underestimate the extent of inflation when prices increase rapidly. C. over

CaHeK987 [17]

Answer:

d. overestimate the extent of inflation because it uses fixed weights and ignores substitution of lower priced items for higher priced items

Explanation:

The CPI tends to overestimate the extent of inflation because it uses fixed weights and ignores substitution of lower priced items for higher priced items

7 0

3 years ago

Sara’s Salsa Company produces its condiments in two types: Extra Fine for restaurant customers and Family Style for home use. Sa

Len [333]

Answer:

1.$4.29 per cases

2. Extra Fine $14.29

Family Style $13.29

3a. Extra Fine $4.71

Family Style $0.29

3b. What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit which may may inturn make make the company to stop the production of the product in a situation where either the cost are not reduced or where the price.

Explanation:

1. Computation for the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa using Plantwide overhead rate

Using this formula

Overhead cost=Total overhead cost/Total volume

Let plug in the formula

First step is to calculate the Total overhead cost

Total overhead cost = $130,800 + $349,000 +$206,000

Total overhead cost =$685,800

Second step is to calculate the Total volume

Total volume= 35,000 + 125,000 cases

Total volume=160,000 cases

Now let calculate the Overhead cost

Overhead cost=$685,800/160,000 cases

Overhead cost=$4.29 per cases (rounded)

Therefore since we are making use of plantwide rate which means that same overhead cost of the amount of $4.29 per cases will be assigned to each of the two case .

2. Calculation to determine the total cost per case for the two products

Extra Fine Family Style

Direct materials + Direct Labor $ 10.00 $ 9.00

Add Overhead $4.29 $4.29

Manufacturing cost per case $ 14.29 $ 13.39

Therefore the the total cost per case for the two products will be:

Extra Fine $14.29

Family Style $13.29

3-A Calculation to determine the gross profit per case for each product.

Extra Fine Family Style

Selling price per case $ 19.00 $ 13.00

Less Manufacturing cost per case $14.29 $13.29

Gross profit (loss) per case $ 4.71. $ (0.29 )

Therefore the gross profit per case for each product will be ;

Extra Fine $4.71

Family Style $0.29

3-b. Based on the above Calculation What might the management conclude about the Family Style Salsa product line is that Family Style salsa are not yielding profit which may may inturn make make the company to stop the production of the product in a situation where either the cost are not reduced or where the price.

3 0

3 years ago

Houston Pumps recently reported $220,000 of sales, $140,500 of operating costs other than depreciation, and $9,250 of depreciati

GenaCL600 [577]

Answer:

The free cash flow for the firm would be $32,812

Explanation:

In this question we have been given the

total sales = $220,000

operating cost ( without deprecation) = $140,500

depreciation cost = $9250

income tax rate = 35%

capital expenditure(amount invested in fixed asset) = $15,250

investment made in net working capital = $6850

Here our first step should be to calculate the EBIT which is the earnings before interest and tax, for calculating this we will subtract the operating and depreciation cost from the total sales of the company,

EBIT = total sales - operating cost - depreciation

= $220,000 - $140,500 - $9250

= $70,250

After this we will subtract the federal plus income tax from this EBIT to get EBAT,

EBAT = $70,250 - 35% x $70,250

= $70,250 - $24,588 ( the original amount was $24587.5 but we

took approximate)

= $ 45,662

Now we will add back the depreciation in it and subtract the investment made in capital expenditure and net operating working capital cost(OWCC)

FREE CASH FLOW = EBAT + Depreciation - Capital expenditure - OWCC

= $45,662 + $9250 - $15,250 - $ 6850

= $32,812

5 0

4 years ago

Read 2 more answers