False it is not a true statement.
Answer:
True
Explanation:
Firm A is operating at full capacity, if its sales keep increasing, then t will need to invest to expand its production capacity. Since firm B is operating below full capacity level, if its sales keep increasing it will have some spare production capacity it can use before operating at full capacity.
Therefore firm A will need to invest in an expansion of its production capacity while firm B can keep operating without new investments.
Answer:
$735 billion
Explanation:
Calculation to determine the national saving
Using this formula
National saving =Gross domestic product-Consumption expenditure-Government expenditure
Let plug in the formula
National saving=$2,450 billion-$1,390 billion- $325 billion
National saving=$735 billion
Therefore the national saving is $735 billion
Answer:
a) he equilibrum quantity is 95 million pounds of butter and the equilbrum price is $1.20 per pound. At this level, both demand and supply is 95 million.
b) 0 or no surplus.
Explanation:
The question is in three parts
a) a. In the butter market, the monthly equilibrium quantity is million pounds and the equilibrium price is $ per pound
The equilibrum price and quantity refers to that point in sales where the quantity demanded = the quantity supplied.
Looking at the schedule, the equilibrum quantity is 95 million pounds of butter and the equilbrum price is $1.20 per pound. At this level, both demand and supply is 95 million.
b) What is the monthly surplus created in the wholesale butter market due to the price support (price floor) program?
First, what is the price floor fixed by the government = $1.00 per pound and at this rate, the demanded quantity is 101 million and the quantity supplied is 79 million pounds.
Hence, the monthly surplus = 79 million pounds - 101 million pounds = -22 million pounds
At this price, there is no surplus
Answer:
Allocated MOH= $180,000
Explanation:
Giving the following information:
Manufacturing overhead is applied to jobs based on direct labor costs using a predetermined overhead rate.
The estimated manufacturing overhead costs are $360,000 and direct labor costs $400,000.
First, we need to calculate the MOH rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 360000/400000= $0.9 per direct labor dollar.
The actual manufacturing labor costs for job 3 are $200,000.
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 0.9*200000= $180,000
