Answer:
The appropriate answer is "$9,300".
Explanation:
The given values are:
FMV,
= $31,000
Adjusted basis,
= $15,500
Encumbered mortgage,
= $9,300
Now,
The Gerald's outside basis will be:
= 
On substituting the given values, we get
= 
= 
= 
= 
($)
Answer:
(a)70 years
(b)23.33 years
(c)8.75 years
Explanation:
According to the Rule of 70, for a given interest rate x, funds double in 
years.
(a)For a savings account earning 1% interest per year,
The number of years it will take the fund to double= 
=70 years
(b)For a U.S. Treasury bond mutual fund earning 3% interest per year.
The number of years it will take the fund to double= 
=23.33 years
(c)For a stock market mutual fund earning 8% interest per year.
The number of years it will take the fund to double= 
=8.75 years
Many people believe that pure monopolies charge any price they want to without affecting sales. Instead, the output level for a profit-maximizing pure monopoly occurs where
D. marginal revenue equals marginal cost
Explanation:
- Many people believe that pure monopolies charge any price they want to without affecting sales. Instead, the output level for a profit-maximizing pure monopoly occurs where
- D. marginal revenue equals marginal cost
- In business, the production is done at the level where marginal revenue is equals to marginal cost to maximize the output.
- When the marginal revenue is greater than the marginal cost, it pays you more.
- Each unit added which is sold will add more to revenue than to costs.
- Marginal cost is the cost which occurs due to the increase in cost a company incurs by producing one extra unit of goods or services.
Answer:
See attached pictures.
Explanation:
See attached pictures for explanation.
Answer:
They have increased the importance of production economies of scale.
Explanation:
Flexible production allows the manufacture of different types of products in the same industrial production line. This makes companies lower costs by avoiding tool change, time savings, and industry structure.
This type of economy fits into the description of economies of scale. Economies of scale are those where the increase in production results in a decrease in the average cost of the product. Increasing production - by including more products on the production line - without a proportional increase in the factory's installed capacity leads to a reduction in the average cost of production, ie it is an economy of scale.
