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Sauron [17]
3 years ago
15

The short-run aggregate supply curve is most likely to shift to the right if _____. rev: 06_12_2018 Multiple Choice productivity

decreases input prices decrease sales taxes increase wages increase

Business
1 answer:
kvv77 [185]3 years ago
6 0

Answer:

input prices decrease.

Explanation:

Aggregate supply is also called domestic final supply is the total supply of goods and services that is made available in an economy in a given period of time. It looks at the national supply of all goods and services.

If there is a decrease in input prices, supplier's cost of doing business reduces and he will have more money to engage in more production. This will result in increased production and a shift of aggregate supply curve to the right.

This is illustrated in the attached diagram.

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Osage Corporation issued 3,350 shares of stock. Prepare the entry for the issuance under the following assumptions. (Credit acco
PilotLPTM [1.2K]

Answer: Please refer to Explanation

Explanation:

a)

DR Cash $ 50,000

CR Common Stock $23,450

CR Paid in Capital in Excess of Par $26,550

(To record issuance of common stock)

Common Stock = 3,350 shares * $7

= $23,450

Paid in Capital in Excess of Stock = 50,000 - 23,450

= $26,550

b)

DR Cash $ 50,000

CR Common Stock $23,450

CR Paid in Capital in Excess of Stated Value $26,550

(To record issuance of common stock)

Common Stock = 3,350 shares * $7

= $23,450

Paid in Capital in Excess of Stated Value = 50,000 - 23,450

= $26,550

c)

DR Cash $50,000

CR Common Stock $50,000

(To record Issuance of Stock)

d) DR Organizational Expense $ 50,000

CR Common Stock $23,450

CR Paid in Capital in Excess of Par $26,550

(To record payment of Organization Expense with stock)

Common Stock = 3,350 shares * $7

= $23,450

Paid in Capital in Excess of Par = 50,000 - 23,450

= $26,550

e) DR Land $ 50,000

CR Common Stock $23,450

CR Paid in Capital in Excess of Par $26,550

(To record issuance of common stock in Exchange of land)

Common Stock = 3,350 shares * $7

= $23,450

Paid in Capital in Excess of Par = 50,000 - 23,450

= $26,550

5 0
3 years ago
Explain why to maximize profits a firm needs to produce an output at a level where marginal revenue
Orlov [11]

Answer:

Rest of question:

... equals marginal cost.

Firms will maximize profits at the point where marginal revenue equals marginal cost because producing after this point means that no profits will be made.

As long as the Marginal revenue exceeds marginal cost, there will be profits made because the company is making more than it is spending so they should keep producing. When it gets to a point in production where the marginal revenue equals marginal cost, the company should not produce further than that.

This is because, as earlier mentioned, any further production would result in the marginal cost being larger than the marginal revenue which means that a loss will be made. The company should therefore stop at the point where MR = MC so as not to let MC get larger than MR so that no losses will be made.

8 0
2 years ago
I need this right now.
mamaluj [8]

Answer:

Sorry cant help with this

Explanation:

4 0
2 years ago
Read 2 more answers
Assume that the interest rate on borrowings in south korea is 1 percent, but the interest rate on deposits in british banks is 7
Vikentia [17]

<u>The trader involved is in carry trade. </u>

<u> </u>

Further Explanation:

Carry Trade: It is defined as a strategy that is used in trading which involves borrowing money at a lower rate of interest and investing in an asset that gives a higher rate of return. It involves borrowing money in a currency that is having a low rate of interest and convert the borrowed sum of money into other currency. The amount is then placed in a deposit in the currency that offers a high-interest rate. It invests in the assets like bonds, stocks, real estate, or commodities that are designated in the other currency.

The two risks that are involved in carry trade are the risk of decline in the price of the assets in which investment is made and exchange risk. This is common in the Foreign exchange market.

<u> Therefore, the trader is involved in carry trade. </u>

<u> </u>

Learn more:

1. Share of medical costs in GDP of US

brainly.com/question/6002864

2. Minimum wage rate

brainly.com/question/8729856

3. Basic right while investigating

brainly.com/question/10185359

Answer details:

Grade: High School

Subject: Economics

Chapter: Types of trade

 

Keywords: the interest rate, South Korea, 1 percent, deposits in British banks, 7 percent, a trader, 1 million South Korean won, British pounds, deposits in a British bank, carry trade, trade involved in, FX market.

5 0
3 years ago
Ramble On Co. wishes to maintain a growth rate of 8 percent a year, a debt-equity ratio of 0.37, and a dividend payout ratio of
Delvig [45]

Answer: 16.55%

Explanation:

Profit margin is the amount of earnings that a company has left when every expenses and costs have been deducted.

From the information given, firstly, we calculate the return on equity. This will be:

= Growth rate /(1 + Growth rate) × Retention ratio

= 8% / (1 + 8%) × 46%

= 0.08/(1 + 0.08) × 0.46

= 0.08/1.08 × 0.46

= 0.08/0.4968

= 0.1610

= 16.10%

Return on equity, ROE = 16.10%

We then calculate the profit margin. This will be:

= ROE / Asset turnover × Equity Multiplier

where,

Equity Multiplier = 1 + debt-equity ratio

= 1 + 0.37 = 1.37

Profit margin = ROE / Asset turnover × Equity Multiplier

= 16.10% / {(1/1.41) × 1.37}

= 16.10% / 0.71 × 1.37

= 0.1610 / 0.9727

= 0.1655

Profit margin = 16.55%

6 0
3 years ago
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