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Lelechka [254]
3 years ago
7

Suppose that, in a competitive market without government regulations, the equilibrium price of hamburgers is $7 each. Indicate t

he followings whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
a. The government has instituted a legal minimum price of $5 each for hamburgers.
b. The government prohibits fast-food restaurants from selling hamburgers for more than $5 each.
c. Due to new regulations, fast-food restaurants that would like to pay better wages in order to hire more workers are prohibited from doing so.
Business
1 answer:
Monica [59]3 years ago
5 0

Answer:

Price floor non binding

Price ceiling binding

Price ceiling binding

Explanation:

A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.

Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.

A. The minimum price is less than the equilibrium price, thus it is a non binding price floor

b. The maximum price is less than the equilibrium price, thus it is a binding price floor

c. Restaurants that would want to pay better wages are unable to do so. This means that there is a binding price maximum in place

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tresset_1 [31]

Answer:

The correct answer is 0.4%.

Explanation:

According to the scenario, the computation for the given data are as follows:

If no debt, then required return can be calculated by using following formula:

Required return ( no debt) = Risk free rate + Unlevered Beta × Market risk premium

= 6% + 1 × 4%

= 0.06 + 0.04

= 0.10 or 10%

If debt, then required return can be calculated by using following formula:

Required return ( with debt) = Risk free rate + levered Beta × Market risk premium

= 6% + 1.1 × 4%

= 0.06 + 0.044

= 0.104 or 10.4%

So, extra premium required = 10.4% - 10% = 0.4%

6 0
3 years ago
If the signaling theory of education is correct;
Snezhnost [94]

Answer:

C. workers with more years of formal schooling are less likely to be affected by ability, effort, and chance.

Explanation:

The <em>signalling theory in education</em> tells us that employees send "signals" to their employees regarding their education. In other words, employers are willing to pay higher wages to employees with additional years of formal schooling.

This means these qualified workers have their wage primarily defined by their education level, which does not always reflect their true skill-set (the output of ability and effort).

5 0
3 years ago
The BRS Corporation makes collections on sales according to the following schedule:
RideAnS [48]

Answer:

$110,300

Explanation:

June collections will comprise of

25% of June sales

71% of May sales

4% of April sales

<u>25% of June sales </u>

=25/100 x 100,000

=$25,000

<u>71% of may sales</u>

=71/100 x $110,00

=$78,100

<u>4% of April sales</u>

=4/100 x $180,000

=$7,200

Total June collections

=$25,000 + $78,100 +$7,200

=$110,300

5 0
3 years ago
Why is it important to understand money behavior is 80% and you have with your money and 20% is knowledge
musickatia [10]

Answer:

because it is always good to have money and understand and then save it and spend it wisely

Explanation:

7 0
3 years ago
the country of doomsville is currently in a recession. the government of doomsville, in an effort to maintain its tax revenues i
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Answer:

This policy would likely make Doomsville's recession worse.

Explanation:

Hope this helps, Have a great morning/night! :D

6 0
3 years ago
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