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Answer:
A. rose 60% from the cost of the market basket in the base year.
Explanation:
The base year of 1982-1984 represents a 100 value for the index, and anything above it, is an over 100 value.
A 60% rise in 12 years (1984 to 1996) represents an average inflation rate of 5% every year, a bit high, but still within a moderate range.
The formula to find the adjusted consumer price index is:
Adjusted CPI = (CPIn / CPIb) - 1
Where:
CPIn = consumer price index in selected year (in this case 1996)
CPIb = consumer price index in base year (in this case 1982-1984)
Answer:
D some firms leave the industry and the existing firms slowly adjust their production to reach their minimum efficient scale.
Explanation:
In a perfectly competitive industry at starting there is a short-run equilibrium in which all the firm is earning zero economic profit but these firm operated below the minimum efficient scale or we can say minimum requirement i.e lowering the average cost for the long run
By going through the options the option is correct as few firms leave the industry and other existing firms try to adjust the production in a slowly way so that they could reach their minimum efficient scale
Hence, the option d is correct
Answer: 55,200 pounds
Explanation:
The required direct material for the second quarter is:
= 19,000 * 3
= 57,000 pounds
The Beginning inventory for the second quarter is 30% of what is required:
= 30% * 57,000
= 17,100
The ending inventory is 30% of the next quarter's requirement:
= 30% * (17,000 * 3)
= 15,300
Purchases for the second quarter = Direct materials required for production in Quarter 2 + Desired ending inventory for Quarter 2 - Beginning inventory for Quarter 2
= 57,000 + 15,300 - 17,100
= 55,200 pounds
A) 227,700
Depreciation per year = (Cost - Residual value) / Useful life
Depreciation per year = ($850,000 - $91,000 ) / 5 = $151,800
Depreciation provided in the books = $151,800 Ãâ€" 2 years = $303,600
<span>Revised depreciation for the year 2018 = ($850,000 - $303,600 - $91,000 ) / 2 = $227,700</span>