The most cost effective way for John to buy a house in the suburbs is:
a.Move to the suburbs and rent a house for one year before purchasing a home.
This is to test the waters. During this time, he has to acclimatize himself into living in a new environment. He has to discover the pros and cons of living in the suburbs compared to living in the city like travel time in going to work, etc.
If after a year, he finds its more beneficial to live in the suburbs, then he can buy a house there. On the other hand, if he finds it costly to live in the suburbs compared to living in the city, he simply has to pay the necessary rent and utility bills, pack up his bags, and go home.
Answer:
The company should print the 3,000 units of Tennessee as they will yield a gain for 3,000 dollars.
Because it faces economies of scale it should sale for as much as it can from a given pattern
Explanation:
Profit: revenue - variable cost - fixed cost
Profit = 15*Q - 8*Q - 18,000
Profit = 7Q- 18,000
3,000 Tennessee shirts x $7 contribution per shirt - 18,000 setup cost
profit: 21,000 - 18,000 = 3,000
Profit maximization: Marginal revenue = marginal cost
Total Revenue: 15 x Q
dTR' /dQ = 15
dTR''/dQ = 0
cost function: 18,000 + 7Q
dC'/dQ = 7
dC''/dQ = 0
Sport Tee faces a economie of scale their cost do not increase over time. Sport Tee should sale as many shirt as it possible can
Answer:
depreciation rate per unit $0.34
Explanation:
To calculate the depreciation cost per unit we divide the amount subject to depreciation by the estimated untis production over its useful life:
depreciable amount:
$41,000 - $3,600 = $ 37,400
depreciation rate:
$37,400 / 110,000 units = $0.34
Steel-frame construction relies on the creation of a sound foundation to sustain the weight of the building, because without that all our buildings we have now would suffer from erosion causing the building to shift or even collapse.;
Answer:
The correct answer is: amount consumed out of an additional dollar of income.
Explanation:
The marginal propensity to consume is a measure to show the increase in consumption of goods and services due to an increase in the disposable income of the consumer.
It is measured by the ratio of change in consumption and change in income. It can also be calculated as 1 - MPS, where MPS is the marginal propensity to save. In other words, MPS is the ratio of change in savings and change in income.
