Answer:
A. its operating income for the period will be higher than under absorption costing
Explanation:
As we know that
Under absorption costing, the fixed cost is divided on the number of units produced
And under the variable costing, the fixed cost is considered as a cost selling of goods so the absorption costing method will be lower than the value of finished goods.
As per the question, the started finished goods will help and sell the whole production and starting balance that means under absorption costing of goods which is to be sold is much than variable costing.
Answer:
0.75, 0.25
Explanation:
With an increase in disposable income marginal propensity to consume increase. Similarly, with an increase in disposable income marginal propensity to save increases. Marginal propensity to save is the amount of money saved or kept after a fraction increase in overall disposable income.
MPC = 300/400=0.75
MPS = 100/400=0.25
Marginal propensity to consume is 0.75
Marginal propensity to save is 0.25
Answer:
B) Project B has below-average risk and an IRR = 8.5 percent.
Explanation:
Since the evaluation is based on IRR, use IRR rule that says you accept a project if its IRR > Cost of capital(WACC in this case)
Project A's IRR of 9% is < 10% WACC for average risk projects hence reject it.
Project B's IRR of 8.5% is > 8% WACC for below- average risk projects hence accept it.
Project C's IRR of 11% is < 12% WACC for above- average risk projects hence reject it.
Answer:
D. Cournot model.
Explanation:
This is explained to be a model pattern wherever 2 companies in most cases that are in duopoly are seen to provide a sort of product at the same time meeting a needed amount and most importantly severally as a kind of competition. As seen above, that was the case of the two firns in the above question. Founding economist fathers has explained that if a game contains a continuous strategy set then it's not forever simple to depict the strategic kind and outcome matrix is an in depth kind as a tree. so as to gift Cournot game, new notation are going to be helpful if a game contains a continuous strategy.
Answer: The explanation is provided below
Explanation:
Below article is the summary of the acceleration of inflation in the emerging markets that was published in 2018.
According to the article, inflation in an economy is caused by an adverse supply shock or as a result of the expansionary fiscal policy or the expansionary monetary policy.
In an adverse supply shock, total quantity of basic goods will reduce drastically causing the aggregate demand to rise exponentially and therefore, push prices higher and then gradually lead to inflation.
Also, the continous and eventual implementation of the expansionary fiscal or monetary policy through continous tax cuts or by increasing government spending or reducting interest rates, lead into significant increase in the aggregate demand and as a result, prices rise eventually resulting in hyperinflation in the economy. This will also lead to increase in the real GDP of the economy.
Different tools in the monetary policy framework can be used to control inflation such as government securities,
the cash reserve ratio, interest rates. To reduce recession, government utilize automatic stabilizer in order to boost the economy.
