Answer:
True
Explanation:
Exceptionally good weather will guarantee a good yield in crops. This will lead to an increase in supply of produce to the market, and when supply increases, the supply curve shifts to the right.
This is simply because there are more products and more sellers, and this will result in more supply.
Answer:
2040.
Explanation:
To reach the total manufacturing cost we need to calculate machining and assembling overhead rate first, in order to calculate the rate we need to divide manufacturing overhead cost on number of hours
Machining OH rate = 280000 / 50000 = 5.60
Assembling OH rate = 360000/40000 = 9.00
manufacturing cost:
machine Assembly Total
Material 425 175 600
labor 275 300 575
Overhead 865
(50*5.60) 280
(65*9) 585
Total cost 2040
Answer:
Price =[PVF15%,1*D1]+[PVF15%,2*D2]+[PVF15%,3*D3]+[PVF15%,4*D4]+[PVF15%,4*Terminal value at year4 ]
60 = [.86957* 1.3]+[.75614*1.69]+[.65752*2.197]+[.57175*2.8561]+[.57175*TV]
= 1.1304+ 1.2779+ 1.4446+ 1.6330+ .57175TV
60 = 5.4859+.57175TV
Terminal value = [60-5.4859]/.57175
= 54.5141/.57175
= $ 95.3460
Terminal value=D4(1+g)/(Rs-g)
95.3460 =2.8561(1+g)/(.15-g)
95.3460(.15-g)= 2.8561-2.8561g
14.3019- 95.3460g = 2.8561-2.8561g
95.3460g-2.8561g = 14.3019-2.8561
92.4899 g = 11.4458
g = 11.4458/92.4899
= .1238 or 12.38%
Growth after year4 = 12.38%
**D1 =1(1+.30)=1.3
D2 =1.3(1+.3)=1.69
D3 = 1.69(1+.3)= 2.197
D4= 2.197(1+.3)= 2.8561
Answer: Option A
Explanation: In simple words, elasticity refers to the change in demand for a product due to change in its price.
If the price for the gasoline remains high in the long run then at one point substitution effect will come into play and consumers will shift their demand to the alternatives available.
However the product like gasoline will not show decrease in demand in the short run due to price as it more of an essential good to daily life.
Thus, the correct option is A.
Answer: infant industry argument
Explanation:
The infant industry argument simply means that the new industries in a particular economy should be protected at all cost from the multinationals or already developed foreign firms so that they themselves can grow and that the foreign firms will not hinder their progress and growth.
This usually applies to small and newly established firms. One of the main reason for taxation is to help protect such industries from competition thqt can hinder them.
