Answer:
$21,000
Explanation:
initial investment $25,000
we need to determine the expected value of every possibility:
- $15,000 loss ⇒ 20% x $10,000 = $2,000
- $29,000 loss ⇒ 15% x $5,000 = $750
- $40,000 gain ⇒ 5% x $65,000 = $3,250
- break even ⇒ 60% x $25,000 = $15,000
total expected value = $21,000
Answer: As the firm produces more of a good, the cost of producing each additional unit increases this implies that the marginal cost of producing a good increases as it makes more of that good.
Explanation: Marginal cost of a producer refers to the addition in total cost when one more unit of a good is produced.
It is given by
Refers to the following situations,
MC increases when adding output increases TC or Total Cost
MC decreases when adding output decreases TC
MC remains constant when adding output does not change TC
The supply curve of the firm is an upward sloping curve, which shows that quantity increases as price increases.
So, in relation to this, it means that MC will also increase as quantity increases.
Answer:
c. shoe leather cost.
Explanation:
During times of high inflation, interest rates usually go up. Money in the banks earns higher interest compared to when inflation is low. When the inflation rate is high, the prices of goods and services increase rapidly, resulting in a reduction in currency's purchasing power.
Individuals and firms opt to keep as little cash in hand as possible. Holding a lot of cash at such times is not prudent as banks offer high-interest rates. Keeping cash become costly due to currency depreciation. As firms and households keep most of the money in banks, they incur a lot of transport costs and time going to banks to withdraw cash for normal expenses. The time and transport costs incurred are referred to as shoe leather costs.
131 x 12= 1,572
500 + 1,572 + 640 (20% of 3,200)
= 2,712$
Answer:
The price elasticity of demand is -3.7
Explanation:
Price Elasticity of demand measure the responsiveness of demand against the change in price of the product.
Simple percentage method calculate the price elasticity by taking ratio of percentage change in Demand to percentage change in price of the product.
Percentage change in Demand = ( Revised demand - Initial demand ) / Initial demand
Percentage change in Demand = ( 182 riders - 472 riders ) / 472 riders = -0.6144 = -61.44%
Percentage change in Price = ( Revised Price - Initial Price ) / Initial Price
Percentage change in Price = ( $0.78 - $0.67 ) / $0.67 = 0.1642 = 16.42%
Price Elasticity = Percentage change in Demand / Percentage change in price
Price Elasticity = -61.44% / 16.42% = -3.74 = -3.7