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Vinvika [58]
3 years ago
5

The market for land is competitive and in equilibrium at the rental rate of $500 per acre and the supply of land is perfectly in

elastic at 1000 acres. If the demand for land falls and the rental rate falls to $400 per acre, the total economic rent on this land _____ by _____.
Business
1 answer:
Elina [12.6K]3 years ago
5 0

Answer:

Falls by $100,000

Explanation:

In this question, we are asked to calculate and state what happens when demand for land falls and as a result, there is also a fall in rental rate.

Firstly, we cost the total of 1000 acres. The price of 1000 acres is simply the multiplication of the 1000 acres by the $500 unit price= 500 * 1,000 = $500,000

We now calculate the price or worth of the land when demand falls

This is mathematically equal to 400 * 1000 = $400,000

Now, the net economic rent fall would be $500,00 - $400,000 = $100,000

Hence, there would be a fall of $100,000 as the demand for land falls

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Assume Intel Corporation (INTC) and Texas Instruments (TXN) report the following information. Intel Corp Texas Instruments ($ mi
KATRIN_1 [288]

Answer:

d. INTC: 2.36 TXN: 3.43

Explanation:

The property , plant equipment turnover is the ratio of sales divided by the amount of PPE as shown below:

PPE turnover=sales/(beginning PPE+ending PPE)/2

Intel Corporation (INTC):

PPE turnover=$38,826/($15,768+$17,111)/2

PPE turnover=$38,826/$16,439.50  

PPE turnover=2.36 times

Texas Instruments (TXN):

PPE turnover=$13,392/( $3,918+$3,899)/2

PPE turnover=$13,392/$3,908.50

PPE turnover=3.43 times

The correct option is D

3 0
3 years ago
Current operating income for Bay Area Cycles Co. is $34,000. Selling price per unit is $100, the contribution margin ratio is 25
leonid [27]

Answer:

break even point in unit =5440 units

break even point in sales = $544000

total sale = $680000

Explanation:

given data

Current operating income = $34,000

Selling price = $100

margin ratio = 25%

to find out

Bay Area Cycle’s break even point in units and total sales dollars

solution

we get here first break even point that is express as

break even point in unit =  \frac{fixed\ cost}{contribution\ per\ unit}   ..................1

break even point in unit =  \frac{136000}{100*0.25}

break even point in unit =5440 units

so

break even point in sales =  \frac{fixed\ cost}{margin\ ratio}   ..................2

break even point in sales = \frac{136000}{0.25}

break even point in sales = $544000

and

total sales will be

total sale =  \frac{operating\ income+ fixed\ expense}{margin\ ratio}   ..................3

total sale =  \frac{34000+136000}{0.25}

total sale = $680000

3 0
3 years ago
Organizations in the United States such as the National Association for the Advancement of Colored People (NAACP) and the Nation
insens350 [35]

Answer: B. classification is a political issue—these groups fear that their political clout will decline if their numbers go down

Explanation:

These organisations fear that their numbers will go down because should a multiracial category be added, they will have less people classified as the races their organisation caters for. More numbers in an organisation means greater power and influence and we've seen this when large trade unions hold entire companies hostage simply because they have the numbers.

A great example would be the Ikwere people of Southern Nigeria. They share a common ancestry with the Igbos of Eastern Nigeria and generally have very similar customs. Even the language is similar and they had always been considered Igbo until after the Civil War in Nigeria broke out with the Igbos being the main rebels. With the Civil war concluded, the Federal Government officially recognized the Ikwere as an ethic group independent of the Igbo. The Ikwere occupied crude oil rich areas and this recognition therefore robbed the Igbo of valuable lands and political clout.

Whilst not strictly the same as these organisations losing people to the multiracial category, it shows what can happen to an organisation should their numbers decrease

6 0
3 years ago
You have gathered the following information on your investments. What is the expected return on the portfolio?
Minchanka [31]

Answer:

The correct option is <u>a. 11.27%</u>.

Explanation:

Note: See the attached excel file for the computation of the e expected return on the portfolio.

The expected return on the portfolio is the addition of the products of weight of each asset in the portfolio and the expected return of each asset.

From the attached excel file, the expected return on the portfolio is <u>11.27%</u>. Therefore, the correct option is <u>a. 11.27%</u>.

Download xlsx
7 0
3 years ago
Consider a retail firm with a net profit margin of ​, a total asset turnover of ​, total assets of ​million, and a book value of
natima [27]

Answer:

a. 15.62%

b. 17.79%

c. 21.53%

Explanation:

a. The Dupont formula for calculating Return on Equity is useful here;

ROE = Net Profit margin * Asset Turnover * Assets / Equity

ROE = 3.6% * 1.88 * ( 43.4/18.8)

ROE = 15.62%

b. ROE = Net Profit margin * Asset Turnover * Assets / Equity

= 4.1% * 1.88 * ( 43.4/18.8)

= 17.79%

c. As a result of the increase in revenues, the asset turnover will increase by;

= Asset turnover * ( 1 + increase in revenue)

= 1.88 ( 1 + 21%)

= 2.2748‬

ROE = 4.1% * 2.2748 * ( 43.4/18.8)

= 21.53%

7 0
3 years ago
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