Answer:
(c) $5
Explanation:
Remember, To calculate marginal cost, we divide the change in production costs by the change in quantity.
In this example, the change in production cost is $200 (for hiring an additional worker) while the change in quantity of taco is 40 (increase in marginal productivity).
The marginal cost= $200/40
we get $5 as the marginal cost.
Answer:
$1,545,000
Explanation:
The formula to compute the cost of the building equal to
Rate of return = (Rental income - expenses) ÷ (cost of building
)
where,
Rate of return = 8%
Rental income equals to
= ($600 × 4 units + $750 × 4 units + $725 × 4 units + $800 × 4 units) × 12 months
= $138,000
Total expense
= $1,200 × 12 month
= $14,400
Now the cost of building would be
8% = ($138,000 - $14,400) ÷ (cost of building
)
8% = $123,600
So, the cost of building equal to $1,545,000
Answer:
Holly; more
Explanation:
In this secanrio we have two firm Holly Inc and Molly inc. Holly inc is interested in acquiring a company in Thailand that produces computers and sells them within Thailand.
Molly Inc on the other hand wants to acquire a Thailand company that will produce computers and export them.
Holly Inc is more sensitive to the economic conditions of Thailand because they want to contribute to the country's GDP and growth by selling computers in Thailand.
Molly Inc however is using Thailand for its production and exporting the computers. It does not contribute to the Thailand economy.
- Companies buyback shares for a variety of reasons, including firm consolidation, increased equity value, and to appear more financially appealing.
-The disadvantage of buybacks is that they are frequently financed with debt, putting a burden on cash flow.
-Stock repurchases can have a modestly favorable impact on the economy as a whole.
Base on my research, the gap that is stated in the problem is the inflationary gap. This is the amount of the real GDP go beyond potential full-employment GDP. Upon eliminating this gap the government forms a policy that will allow the potential GDP to be equal to the real GDP and higher the price level.