If the government raises the excise tax of the product then supply curve tends to shift leftwards. Therefore, The above statement is false.
<h3>What is Supply Curve?</h3>
The supply curve refers to the graphical representation of the supply and the prices of the commodity. It tells how the supply of the commodity affects the prices of the product.
The complete question is attached below.
According to the above situation, when government increases the taxes of the gallon of gasoline then the supply curve will shift leftwards as the supply decreases.
It will lead to the increment in the level of the prices as the demand of the product will fall. Therefore, the above statement is false.
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Answer:
(C) Joss should charge Iris $500 and Daphne $800, that way economic surplus is maximized.
Explanation:
Assuming information asymmetries in the market, and Iris and Daphne are incapable of compare their willingness to pay against the average price of the market for this type of service, C is true since Joss maximize the economic surplus by increasing his productivity using the time better than his opportunity cost.
Answer:
C)debit Rent Expense, $3,000; credit Prepaid Rent, $3,000.
Explanation:
The amount $18,000 is good for 6 months. That means that the monthly rent would be $3,000 (which is 18,000/6).
On July 31, one month of this prepaid rent has been used and should be recognized as a "Rent Expense" for one month which is $3,000
The credit would be "Prepaid Rent" since the balance of $18,000 should decrease by $3,000, which is the used portion of the prepaid rent.
Answer:
14%
Explanation:
Data provided as per the question
Face value = $1,000
Present value = $690
Nper = 10
PMT = $80
The computation of yield to maturity. is shown below:-
YTM = Rate(Nper,PMT,PV,FV)
= Rate(10,80,690,1000)
= 14%
Therefore for computing the yield to maturity we simply applied the formula and put it into an excel sheet.
Answer: Over-diversification
Explanation:
According to the given question, the Over-diversification is one of the concept in the business in which the an organization make a large number of investment of the different types of asset where the expectation of the marginal cost become high.
Greg is one of the leading company CEO and for the growth of the company he has decided for acquiring some small chemical firms for increase the productivity but the shareholder are not happy with this due to the over-diversification concept.
The over-diversification also increase the risk in the investment process but there is always high possibility of marginal benefit in the business. Therefore, Over-diversification is the correct answer.
