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This is a kind of economic policy used to contest inflation which includes decreasing the money supply in order to raise the cost of borrowing which in order decreases GDP and reduces inflation. This leads to disinflation and creates the short-run Phillips curve move to the left. So the answer is A.
Answer:
PW = 2,911
FW = 5,856
Since both PW and FW are positive project may be accepted
Explanation:
the file attached below shows the full explanation
Answer:
Sell before assembly, The company will be better off by $4 Per Unit
Explanation:
Calculation to determine what decision should Vaughn make
PROFIT BEFORE ASSEMBLY
Profit = Sale price - Cost price
Profit= $51 - $24
Profit= $27 Per Unit
PROFIT AFTER ASSEMBLY
First step is calculate the Cost of Assembled Product
Cost of Assembled Product =$24 + $14
Cost of Assembled Product= $38 Per Unit
Now let determine the profit
Profit = Sale price - Cost price
Profit= $61 - $38
Profit = $23 Per Unit
Now let Determine what decision should Vaughn make
Hence, the Profit by selling assembled product is LOWER than selling the Unassembled product by :
$27 Per Unit - $23 Per Unit
= $4 Per Unit
Therefore the decision that Vaughn should make is: Sell before assembly, The company will be better off by $4 Per Unit
