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3 years ago

As capital investment levels off business spending decreases and leads to a possible contraction to the economy. True or False?

Business

2 answers:

notka56 [123]3 years ago

8 0

Answer:

TRUE

Explanation:

GDP counts consumption, investments, public spending and trade balance. All of these variables affect economic activity. When capital investment decreases, it means that less money will circulate in the economy, which represents a decrease in economic transactions and consequently leads to a cooling of the economy and GDP. An economy with a drop in investment is a recessive bias economy!

k0ka [10]3 years ago

7 0

It is a true statement that as <span>capital investment levels off business spending decreases and leads to a possible contraction to the economy. The correct option among all the options that are given in the question is the first option. I hope that this is the answer that has actually come to your help.</span>

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Tulip Co. owns 100% of Daisy Co.'s outstanding common stock. Tulip's cost of goods sold for the year totals $600,000 and Daisy's

dsp73

Answer:

Amount to be reported as cost of goods sold in the consolidated financial statement = $900,000

Explanation:

When a company holds 100% shares or more than 50% shares of another company that is common stock, they establish a holding subsidiary relationship in which equity method is to be followed.

As per equity method all the cost of goods sold by that of subsidiary is to be added to financial statements of holding while making consolidated financial statements.

In this if there are any sales or purchase between holding and subsidiary then such profit is not be added up till that inventory is further sold to third party.

In case the inventory is sold to third party then entire profit that is inclusive of holding to subsidiary is to be included as part of consolidated financial statements.

Therefore in the above case since Daisy has sold the inventory purchased from Tulip, entire cost of goods sold shall form part of consolidated financial statements.

Here amount to be reported as cost of goods sold in the consolidated financial statement = $600,000 + $400,000 = $1,000,000

Further the cost of goods sold is included 2 times, first in Tulip's account for $60,000 and then the same in Daisy's account for $100,000. In consolidated statement double amount should not be added, thus net cost of goods sold = $1,000,000 - $100,000 = $900,000

6 0

3 years ago

Marginal revenue product is the: a. change in total output resulting from a unit change in the quantity of a variable input. b.

VMariaS [17]

Answer:

An apple, potato, and onion all taste the same if you eat them with your nose plugged

Explanation:

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3 years ago

Brainliest and 40 pts!!! Does my answer work for this question?

anyanavicka [17]

You don't need to cha Change a thing, that will be the best move if I were to be in your position

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2 years ago

Nico is buying a home for $625,000. His earnest money deposit is 8%. He wants to avoid private mortgage insurance (PMI) on his c

qaws [65]

Answer: $106,250

Explanation: Conventional loans often require 20% down to avoid PMI ($125,000), and Nico has paid a $50,000 deposit ($625,000 x .08). Closing costs are $31,250 ($625,000 x .05).

He needs $106,250 to close ([$125,000 - $50,000] + $31,250).

4 0

3 years ago

Cully Furniture buys two products for resale: king beds (K) and queen beds (Q). Each king bed costs $500 and requires 100 cubic

lana66690 [7]

Answer:

1) 500K + 250Q ≤ 80,000

100K+80Q≤ 30,000

K≥0

Q≥0

P= 400K + 200Q

2) zero king beds and 320 queen beds

or zero queen beds and 160 king beds

3) surplus variable

surplus variable is storage space

values of surplus variable is 14,000 cubic feet if zero queen beds and 160 king beds

value of surplus variable is 4,400 cubic feet if zero king beds and 320 queen beds.

surplus is the extra amount available after all resources have been utilized to theri maximum.

4) none of the resources will be completely used. There will be surplus of both

Explanation:

1) Implicit variables: K≥0 ; Q ≥ 0

Explicit variables:

500K + 250Q ≤ 80,000-------------------------- from investment constraint

100K+80Q≤ 30,000 ---------------------- from storage space constraint

LP: P= 400K + 200Q

2) See the attachment for profit maximization graph

3) From graph in the attachment, it can be inferred that storage space is the surplus variable since graph of that equation lies completely outside of optimal area.

Also,

if K=160 and Q=0, the inequality of investment gives

500(160) + 250(0)= 80,000

if K=0 and Q=320, the inequality of investment gives

500(0)+ 250(320) =80,000

if K=0 and Q = 320, the inequality of space gives

100(0) + 80(320)= 25,600

surplus= 30,000- 25,600= 4,400

if K=160 and Q=0, the inequality of space gives

100(160) +250(0)= 16000

surplus= 30000-16000= 14000

4) K=0 and Q=300

investment inequality gives

500(0) + 250(300) ≤ 80,000

75,000≤ 80,000

space inequality gives

100(0) + 80(300) ≤ 30,000

24,000≤ 30,000

Both space and investment are in surplus

6 0

3 years ago