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adelina 88 [10]
3 years ago
5

If Jacques's Fire Engines were a competitive firm instead and $80,000 were the market price for an engine, decreasing its price

from $80,000 to $60,000 would result in a decrease in the production quantity, but an increase in total revenue.
a) true
b) false
Business
1 answer:
Anna35 [415]3 years ago
3 0

Answer:

The correct answer is:

false (b)

Explanation:

Reduction in the price of a good or service in a competitive market leads to an increase in quantity demanded, which in turn leads to an increase in the production quantity, to cater for the increase in the volume of demand. Hence the reduction in the price of Jacques's fire engines will increase demand and in effect increase the production quantity. With respect to the total revenue, depending on the extent of demand increase, the total revenue might increase or even decrease. If the total demand exceeds the previous demand to make up for the reduction in price, the total revenue will increase, if not so, the total revenue will decrease.  

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Currently, you owe the bank $9,800 for a car loan. The loan has an interest rate of 7.75 percent and monthly payments of $310. Y
Ostrovityanka [42]

Answer:

It will extend the loan for 15.83 months = 16 more months.

Explanation:

We need to calcualte the difference in time between one option and another:

Original Loan:

C \times \frac{1-(1+r)^{-time} }{rate} = PV\\

C  $310.00

time n

rate 0.0064583 (0.0775annual rate / 12 month per year)

PV $9,800

310 \times \frac{1-(1+0.0064583)^{-n} }{0.0064583} = 9800\\

We rearrenge and solve as much as we can:

(1+0.0064583)^{-n}= 1-\frac{9800\times0.0064583}{310}

(1+0.0064583)^{-n} = 0.79583439

Now, we solve using logarithmics properties:

-n= \frac{log0.795834387096774}{log(1+0.0064583)}

35.47385568

Now we calcualte with the new terms:

C  $225.00

225 \times \frac{1-(1+0.0064583)^{-n} }{0.0064583} = 9800\\

(1+0.0064583)^{-n}= 1-\frac{9800\times0.0064583}{225}

(1+0.0064583)^{-n}= 0.71870516

-n= \frac{log0.718705155555555}{log(1+0.0064583)}

51.30909653

Last step, we solve for the difference:

51.30 - 35.47 = 15.83 = 16 more months

7 0
3 years ago
What type of business sells to the end consumer
Shtirlitz [24]

Answer:

business-to- consumer (B2C)

Explanation:

Commerce is a business model which typically involves the buying and selling of goods or products at a given price.

Generally, commerce comprises of four (4) business models and these are;

1. Business to Business (B2B).

2. Consumer to Consumer (C2C).

3. Business to Government (B2G).

4. Business to Consumer (B2C).

A Business to Consumer (B2C) can be defined as a market which typically involves businesses selling their goods and services directly to the end consumers for their personal use.

Hence, the type of business that sells to the end consumer is known as business-to- consumer (B2C).

Some examples of companies that engage in the Business to Consumer (B2C) business model are; Amazon, Goo-gle, Walmart, Alibaba, Uber, LinkedIn, etc.

4 0
3 years ago
A golf ball manufacturer gives us its data for the year: WIP Inventory, January 1 Units started Units completed and transferred
N76 [4]

Answer:

c. $10,106 if taken separately for Direct Material or Conversion Costs

Or None of these as total cost is $ 10,779+$ 10,081= $20860 for units transferred out

Explanation:

                                         

                                              Units         % of                       Eq. Units

                                                              Completion      D.M          Conversion

Units completed and

transferred out                 6,400 units         100%            6400           6400

WIP Inventory,                  3,100 units         90%,60%       2790           1860

December 31

<u>Total Units to account for                                                 9190             8260</u>

Direct materials            $15,478

Direct labor                    $7,400

Manufacturing Overhead  $5,611

Direct Material Cost per unit= $ 15478/9190= $ 1.684

Conversion Cost per unit=   $13011 / 8260= 1.575=$ 1.58

Direct Material Cost for Completed units = 6400 * $1.684= $ 10,779

Conversion Cost for Completed units = 6400 *1.575= $ 10,081

6 0
3 years ago
When firms purchase new capital we call this _____
tatuchka [14]

Answer:

Business fixed investment

Explanation:

The <u><em>purchase by firms of new capital goods</em></u> such as machinery, factories, and office buildings. (Remember that for the purposes of calculating GDP, long-lived capital goods are treated as final goods rather than as intermediate goods.) Firms buy capital goods to increase their capacity to produce.

6 0
3 years ago
Read 2 more answers
A company sells goods for $150,000 that cost $54,000 to manufacture. Which statement is true? a. The company will recognize sale
kirza4 [7]

Answer:

The correct answer is C

Explanation:

Finished goods are those goods which have been finished or completed through the process of the manufacturing or purchased or bought in the completed form, but not sold yet to the customers.

The finished goods cost or expense is considered to be a asset which is short term in nature, which is expected to be sold in less than a year or period.

So, when the company sold the goods that worth $54,000 to the manufacture for $150,000, this will lead to decrease in the finished goods of the company which worth $54,000.

7 0
4 years ago
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