C. increase in the interest rate
Answer:
1) The correct answer is letter "C": spending on goods to be used in future production.
2) The correct answer is letter "B": is considered unsold inventory and counted as a part of investment in current GDP.
Explanation:
1) The Gross Domestic Product (GDP) considers four (4) components: <em>Consumption, Investment, Government, </em>and <em>Net Exports</em> (exports-imports). Investments refer to all goods that are purchased to produce other goods in the future. Final goods to be used or to replace others do not fall into this category.
2) The output of a company is computed within the GDP. Even if the output is not sold after production but it is recorded as part of an organization's inventory, it will be considered in the calculation of the GDP of the year when the production of the good took place.
Answer:
See explanation Section
Explanation:
Culver Corporation
Balance Sheet (Current Asset only)
As at December 31, 2017
Particulars $ $
Cash $8,220
Accounts Receivable $97,530
Less: Allowance for
<u>Doubtful Accounts (4,520) </u> $93,010
Prepaid Insurance $6,040
Inventory $34,900
<u>Equity Investments $13,510</u>
Current Assets $155,680
Note: As equity investment will be sold in the next year, it is shown as current assets. Land and patents are property, plant, and equipment.
Answer:
The correct answer is D. equal to both average revenue and marginal revenue.
Explanation:
A perfectly competitive market or market of perfect competition is that market in which two characteristics are fulfilled:
1) there is a large number of buyers and sellers in such a way that the influence they individually exert on prices is negligible;
2) the goods or services that are exchanged are the same. [Supply and demand] Perfect competition is the situation of a market where companies lack the power to manipulate the price (price-acceptors), and there is a maximization of well-being.
This results in an ideal situation of the goods and services markets, where the interaction of supply and demand determines the price. A perfectly competitive market has the following characteristics: There are many buyers and sellers in the market. The goods offered by different vendors are largely identical. Companies can freely enter and exit the market.
Answer:
Proposal A: $185,714.29
Proposal B: $160,000
Explanation:
Giving the following information:
$10,000 for installations to be completed.
The revenue generated by each unit is $ 20.00
Proposal A:
Fixed costs= 55,000
The variable cost is $13.00
Proposal B:
Fixed costs= 70,000
The variable cost is $10.00
Break-even point (dollars)= fixed costs/ contribution margin ratio
Proposal A: (55,000+10,000)/[(20-13)/20]= $185,714.29
Proposal B: (70,000 + 10,000)/[(20-10)/20]= $160,000