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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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Answer:

d. $1,875 unfavorable

Explanation:

Direct material quantity variance is computed as;

= (AQ - SQ) × SP

AQ = Actual quantity = 6,300 units

SQ = Standard quantity = 14,200 / 2 = 7,300 units

SP = Standard price = $0.80

Direct material quantity variance

= (6,300 - 7,300) × 0.80

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Old Camp Company manufactures awnings for its own line of tents. The company is currently operating at capacity and has received
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Answer:

It is more convenient to continue the production in house.

Explanation:

Giving the following information:

The company is currently operating at capacity and has received an offer from one of its suppliers to make the 12,000 awnings it needs for $25 each. Old Camp’s costs to make the awning are $12 in direct materials and $7 in direct labor. Variable manufacturing overhead is 70 percent of direct labor. If Old Camp accepts the offer, $42,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines.

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3 years ago
Which statement correctly describes the current state of instant messaging in the workplace? Multiple Choice It is an establishe
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Answer:

It is a relatively new, undeveloped form of communication in the workplace, and attitudes toward it vary.

Explanation:

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Answer:

agreeableness

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I hope my answer helps you

6 0
3 years ago
Read 2 more answers
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