Answer:
d. A credit to Prepaid Insurance for $680.
Explanation:
The computation of the prepaid insurance is shown below:
Given that
Four month prepaid insurance = $2,720
For one month, the prepaid insurance is
= $2,720 ÷ 4 months
= $680
Since we have to record the prepaid expenses for 1 month, we divided the total prepaid insurance by the 4 months due to that it decreases by $680 and that's why we credited this account
Answer:
Firms may be inclined to keep their workers’ wages above the equilibrium level.
Explanation:
The efficiency wage theory states that if an employer increases the wage of his/her employees, they will be motivated and their productivity will increase. The increase in productivity should offset the increased labor costs. So the costs of higher wages should be recouped through increased productivity. Higher wages also reduce worker turnover, reducing hiring and training costs.
<span>For a producer surplus of $180 coming from sales of 12 units, this would be the result from (180 / 12), or $15 per purse. Taking the cost she has to pay for each unit, $35, and adding the $15 surplus to each, this leads to a sale price of (35 + 15), or $50 per purse.</span>
He believed that by helping business, he was also helping individuals