Answer:
Maximum total profit = $4,800
Explanation:
When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that it maximizes the contribution per unit of the scare resource.
Therefore the Company should allocate the budget cost to maximize the profit per production cost. This is done as follows:
Calculate the profit per budget cost and rank the product
Gasoline Heating oil
Profit per product cost 3/6=0.5 4/8= 0.5
The two products produce the same profit per dollar of cost which is $0.5. So, they are equally ranked.
So the total profit= the budget cost × profit per budget
= 9,600× $0.5 =$4,800
Maximum total profit = $4,800
Increasing and decreasing money supply
Answer:
a.the price level is higher than expected making production more profitable.
Explanation:
The sticky wages shows that the output increases if the price level is higher because an increase in price level increases the profitability and the increased profitability increases output.
Answer:
The statement is FALSE.
Explanation:
Concrete terms are referred to those objects and events that are available to the five senses of human. However, these terms can be used in an abstract or symbolic way. A word is concrete in a specific context, but becomes a symbol of an abstract idea in a different context depending on the author's intent. This is possible because that symbol is not used in a literal meaning, but is used to represent an idea which usually means something else. Henche the given statement is wrong.
Answer:
A is the correct answer
Explanation:
Most small businesses use a simple organizational structure. In this, decision making is centralized with the owner. It doesn't have any formal departments and layers. There are both advantages and disadvantages of running the company with this structure. It enables the owner to keep tight control over the company's operation. No decisions can be made without the owner's approval and the owners of aware of every decision made. These companies make decisions quickly as there are no layers of management where the request needs to climb before approval.
