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Mashcka [7]
3 years ago
11

Suppose the number of firms you compete with has recently increased. You estimated that as a result of the increased competition

, the demand elasticity has increased from –2 to –3, i.e., you face more elastic demand. You are currently charging $10 for your product. If demand elasticity is -3, you should charge [x].
Business
1 answer:
marysya [2.9K]3 years ago
3 0

Answer and Explanation:

An increase in the number of firms increases the demand elasticity. As the demand elasticity increases from 2 to 3 it means you could encounter less demand if product prices are increased. At a demand elasticity of -3, it is regarded as inelastic demand and a change in price will not affect the demand for the product as customers are still likely to patronize the product example gasoline. Due to its high demand, an increase in price will not readily affect the demand for it. Therefore if you are to change the price from $10 at 2 to 3 demand elasticity increase, the percentage of increase from 2 to 3 is given as.

3-2/2 X 100 = 50%

The new charge (x) at -3 demand elasticity = 50%/3 = 0.66666666

The increase in the new charge is therefore $10 + $10x = $10 + $10(0.166666) = $11.67

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Guinan Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direc
Tresset [83]

Answer:

$4,200 over applied

Explanation:

For computing the over applied overhead, first we have to find out the predetermined overhead rate which is shown below:

Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)

= $327,080 ÷ 14,800 hours

= $22.1

Now we have to find the actual overhead which equal to

= Actual direct labor-hours × predetermined overhead rate

= 13,900 hours × $22.1

= $307,190

So, the overhead over applied would be

= Actual manufacturing overhead - applied overhead

= $302,990 - $307,190

= $4,200 over applied

7 0
3 years ago
Bonds from the U. S. Treasury are selling at 102. 293, bonds from Alachua County are selling at 85. 681, and bonds from the city
fgiga [73]

The security market is filled with many different types of marketable securities like shares debentures and bonds which can be traded via different trading platforms available in the securities market.

<h3>What are bonds ?</h3>

  • Bonds are the securities in the documented form which can be traded and exchanged containing a maturity date and the principle amount to be paid at maturity.

  • These are instruments of fixed income because the bearer of bonds can be said as a creditor to the issuer and will be paid the fixed amount as per the face value of the bond.

  • Bonds can be issued by government , municipality or a company.

The par value is a value which is equal to the face value of an instrument and which does not contain any  element of premium or discount.

Therefore the bonds from U.S. Treasury, from Alachua County, and from the city of Northfield will be considered to be purchased on the par value of $1,000 from each of the following irrespective of the fact that what price they are being sold in the market.

<h3>Calculation</h3>

\rm Total\:cost\:= U.S. \: tresury\: bond \:+ Alachua\:county\:bond \:+ Northfield\:bond\\&#10;\\&#10;\rm\:Total\:cost\:= \$1,000\:+\$1,000\:+\$1,000\\&#10;\\&#10;\rm\:Total\:cost\:= \$ 3,000

Hence the total cost for Lana if she purchase 1 bond from each of the following at a par value of $1,000 will be $3,000 and OPTION A is correct as per the question.

Learn more about bonds here:

brainly.com/question/19069574

5 0
3 years ago
Tanning Company analyzes its receivables to estimate bad debt expense. The accounts receivable balance is $354,000 and credit sa
Dmitry_Shevchenko [17]

Answer:

Dr Bad Debt Expense $12,760

Cr Allowance for Doubtful Accounts $12,760

Explanation:

Based on the information given the adjusting journal entry that Tanning Company will make if the Allowance for Doubtful Accounts has a credit balance of the amount of $1,400 before adjustment will be :

Dr Bad Debt Expense $12,760

Cr Allowance for Doubtful Accounts $12,760

[(4%*$354,000)-$1,400]

4 0
3 years ago
When the engineers from fm global (factory mutual) conduct inspections at industrial facilities, whose interests are they hired
WINSTONCH [101]

When the engineers from FM Global (factory mutual) conduct inspections at industrial facilities, the interest they hired is to protect the companies that insure the properties.

FM Global is one of the global's biggest commercial and business assets coverage and chance management agencies, focusing on assets safety. we've currently ranked #447 on the Fortune 500 list of America's largest companies.

Malcolm C. Roberts is responsible for the strategic and operational direction of FM Global, one of the world's largest industrial property insurers and which insures nearly US$10.2 trillion in business belongings in greater than a hundred thirty international locations.

"FM international" is the communicative name of the organization, while the felony call is "manufacturing facility Mutual coverage organization". FM international has been named the "first-rate property Insurer inside the international” by means of Euromoney mag.

Learn more about FM Global here brainly.com/question/8304017

#SPJ4

4 0
2 years ago
The main elements of market structure are _____. perfect competition, monopolistic competition, monopoly, and oligopoly perfect
Bess [88]

Answer:

First one:

perfect competition, monopolistic competition, monopoly, and oligopoly

Explanation:

Hope this helps!!:)

6 0
2 years ago
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