Answer:
D) The extra energy benefits Patrick gets from another can are no longer worth the cost. MB/MC (S)
Explanation:
The optimal quantity for Patrick to consume is 5 cans of GreenCow.
This is the quantity where MARGINAL BENEFIT EQUALS MARGINAL COST. For all quantities up to the 5th, the marginal benefit is higher than the marginal cost. This means that Patrick's net benefit is increasing, and consuming all units up to this point make him better off.
If Patrick were to consume any more than 5 cans of GreenCow, the cost of each additional can would be higher than the additional benefit (because the marginal cost curve is higher than the marginal benefit curve). Consuming any cans beyond the 5th, therefore, makes him worse off.
Answer: B
Explanation: There is an unlimited amount of wants but limited amount of resources
1) Answer: When the required return is equal to the coupon rate, the bond value is equal to the par value,
2) if the required return is less than the coupon rate the bond will sell at a premium.
Explanation:
1) The reason for this that the required return is the market or investors required rate of return for a particular bond, when the required rate and coupon rate are equal it means that the investor is getting the return he wants in coupon payments, therefore the investor will be willing to buy the bond on par value, as he is getting his required return in the form of coupon payments.
2) When the required return is less than the coupon rate the investor is getting more in coupons than he required from the bond so the bonds price will be higher than par so that the return from the coupons become equal to the required rate of return. Thats why when a bonds required return is less than the coupon it sells on a premium.
Answer:
$60000
Explanation:
Given: Sales = $300000.
Cost of goods available for sale= $270000.
The gross profit ratio= 30%
First finding the gross profit out of total sales.
Gross profit=
Gross profit=
∴ Cost of goods sold=
Cost of goods sold=
Cost of goods sold=
Hence, cost of goods sold=
Now, finding estimated cost of the ending inventory.
Cost of ending inventory=
⇒ Cost of ending inventory=
∴ Cost of ending inventory=
Hence, estimated cost of the ending inventory under the gross profit method would be $60000.