Answer:
a. iii. Too little
b. i. The industry's supply of cashews will exceed Q1 and the price of cashews will equal P1.
Explanation:
Allocative efficiency refers to the point in production where Marginal Revenue equals Marginal cost. As this is a perfectly competitive market, marginal revenue is the same as price which as shown in the question, exceeds Marginal cost. The firms are therefore producing too little to achieve allocative efficiency and need to produce more to make price and marginal cost equal.
In the long run, the firms will produce more such that supply would exceed the original quantity supplied of Q1. This will lead to the price falling back to P1 as there is now less scarcity.
Answer:
I think it easier in person
Explanation:
This is due to the fact that I can see the people and can understand if people are paying attention or if I need to alter the material a bit.
Answer: Option A
Explanation: In simple words, substitution effect refers to the economic phenomenon which states that when price of one good rises the demand for the alternative of that particular good also rises. For example - coke and pepsi.
On the other hand, income effect states that when the price of a commodity rises, a number of consumers might find it hard to purchase due to the price exceeding their income power which further results in lower demand.
Hence from the above we can conclude that the correct option is A.
Answer:
Motivation
Explanation:
<em>Motivation in work is when employees are incentivized due to their good performance</em>, this happens when they provide the company a greater value. There are two kinds of motivation:
- Internal: it includes emotions and thoughts, <em>in the exercise given this internal motivation is letting the team know that they are doing good</em>
- External: includes salary and work environment, <em>in the case given the bonuses are the external motivation</em>
I hope you find this information is useful and interesting! Good luck!
Answer:
Present value of interest is $5,062 and future value is $5,796
Explanation:
The formula for finding the Present value of the interest reported as revenue is calculated as under:
Present Value of $40,000 receivable in 2 years = $40,000 / (1+7%)^2
Present Value of $40,000 receivable in 2 years = $34,938
The difference of the future value receivable and present value of the future amount receivable is the interest's present value which is given as under:
Interest Present value = $40,000 - $34,938 = $5,062
Using the compounding formula, the future value of the interest that will be recorded in the financial statement will be = $5,062 * (1 + 7%)^2 years
Future value of interest = $5796