Answer: When a market price allocates resources, everyone who is able to pay the price gets the resource.
Explanation:
The market allocates prices to goods and services based on the scarcity of the said goods and services. This means that regardless of how scarce a good is, you can get it if you are willing to pay the price that it is being offered at.
For instance, if the price of tomatoes suddenly went up from $4 to $12 per pack, it means that tomatoes are now more scarce and not many people can afford it. If you can afford that $12 however, you will be able to get the tomatoes despite how scarce it is.
Answer:
$1,839.45
Explanation:
PV = P * [1-(1+r)^-n / r]
n = 30*12=360 months, r = 6.37%/12 = 0.5308% (monthly)
295,000 = P*[1 - (1+0.005308)^-360 / 0.005308}
295,000 = P * $160.3739
P = $295,000 / $160.3739
P = $1,839.45
So, the monthly mortgage payments is $1,839.45.
Answer:
Financial advantage $159,000
Explanation:
unit variable cost = 15 + 12 + 8 + (25%×8) = $37
Note the selling variable cost is now 25% of the initial cost before the special order because of the 75% savings
The fixed cost were not considered in the analysis because they are not relevant. They would be incurred either way, whether the order is accepted or not
Financial advantage of the special order
$
Sales revenue from special order = (6,000× $65) = 390,000
Variable cost ( 6000× $37
) = (222,000
)
Cost of special machine <u>( 9,000)</u>
Financial advantage <u> 159,000</u>
Answer:
<h2>The Average cost usually decreases as the output expands.Hence,the answer in this case would be option c. or will always decrease as output expands.</h2>
Explanation:
- Fixed costs or expenses of production refers to those that are fixed or constant through out the production process or does not depend on the changes or adjustments in the actual output or production level.
- Some of the common examples of fixed cost of production include building rent,utility bills,land rent,insurance and interest payments.Note that these costs and expenses are fixed and unchanged and any firm or company has to pay them regardless of the production or output level.
- Now,since the average fixed cost of production is calculated by dividing the total fixed cost of production by the quantity of output produced by the firm at any particular period of time,the average fixed cost of production will decrease.As the output expands the denominator of the average fixed cost formula will increase but note that the numerator of the formula or the total fixed cost of production will always remain constant.Therefore,the average cost of production keeps decreasing with an increase in output or production level,signifying economies of scale.
Answer:
C) For; they are available to all eligible taxpayers, not just those that itemize deductions
Explanation:
Any individual's adjusted gross income is equal to the individual's total gross income minus certain specific deductions, e.g. health savings account, contributions to retirement accounts, student loan interest, etc.
An individual's taxes are calculated using the adjusted gross income as basis, not simply the gross income.
