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Rina8888 [55]
3 years ago
11

"If Jason receives his quarterly bonus of $3,000 and spends $2,100 on a computer and puts the rest in his savings account, what

is Jason’s MPC and MPS?"
Business
1 answer:
snow_lady [41]3 years ago
7 0

Answer: 0.70; 0.30

Explanation:

Marginal propensity to consume(MPC) is the additional spending by an economic agent due to a rise in income while the marginal propensity to save is the additional saving by someone due to rise in income.

Increase in income = $3,000

Increase in spending = $2,100

Increase in savings = $3,000 - $2,100 = $900

MPC = $2,100/$3,000

= 0.70

MPS = $900/$3,000

= 0.30

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When a person returns to work after a period of total disability but cannot earn as much as he or she did before the disability,
andriy [413]
Loss in the situation after a time
5 0
3 years ago
Fixed overhead​ costs: A. never have any unused capacity B. should be unitized for planning purposes C. are unaffected by the de
d1i1m1o1n [39]

Answer:

C. are unaffected by the degree of operating efficiency in a given budget period.

Explanation:

Fixed over head costs or indirect costs are cost that do not vary with the level of out put. They are essential cost required to manage a business.

These costs are the same months by Months and are needed for the smooth running of the business. They are also unaffected by the degree of operating efficiency in a given budget period.

Examples of fixed overhead are rents, salaries, depreciation , insurance and taxes. It should however be noted that if there is an increase in sales compared to the budgeted sales of the company, there could be an increase in fixed overhead cost due to additional employees and administrative staff.

4 0
3 years ago
The following table contains statements that provide some analysis of policies that address smoking, lung cancer, and cigarette
liubo4ka [24]

Answer:

Positive Statements: 1st & 2nd ; Normative Statements: 3rd & 4th

Explanation:

Positive Economics is <u>objective</u> & <u>facts</u> based <u>actual</u> economic issue description , explaining verifiable phenomenas (causal relationships).

Normative Economics is <u>subjective</u> & opinion based conclusive <u>solutions</u> to economic issues, including '<u>ought to be</u>' unverifiable suggestions.

1. Lung cancer kills millions of people each year: reflects actual objective verifiable fact about an economic (health) issue.

2. Too many people smoke: denotes another actual objective variable fact connected to (potential cause of) the above economic (health) issue.

So , these two are Positive Statements.

3. If the government were to increase taxes on cigarettes, fewer people would smoke : Is subjective opinion based probable solution to the above economic (health) issue.

4. The government should increase taxes on cigarettes : Is an 'ought to' suggestion for an economic participant (govt) to solve the above economic (health) issue.

So , these two are Normative Statements

5 0
3 years ago
Bargeron corporation has a target capital structure of 64 percent common stock, 9 percent preferred stock, and 27 percent debt.
dalvyx [7]

a.

WACC is calculated as –

WACC = (Weight of common stock X Cost of common stock) + (Weight of preferred stock X Cost of preferred stock) + (Weight of debt X After tax cost of debt)

WACC = (64% X 13.4%) + (9% X 6.4%) + (27% X ((1- 40%)*8.1%))

WACC = 10.46%

b. After tax cost of debt is calculated as –

After tax cost of debt = (1- tax rate) X cost of debt pre-tax

After tax cost of debt = ((1- 40%)*8.1%))

After tax cost of debt = 4.86%

6 0
3 years ago
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 16% and a standard devi
ElenaW [278]

The proportion of the optimal risky portfolio that should be invested in stock A is 0%.

Using this formula

Stock A optimal risky portfolio=[(Wa-RFR )×SDB²]-[(Wb-RFR)×SDA×SDB×CC] ÷ [(Wa-RFR )×SDB²+(Wb-RFR)SDA²]- [(Wa-RFR +Wb-RFR )×SDA×SDB×CC]

Where:

Stock A Expected Return  (Wa) =16%

Stock A Standard Deviation (SDA)= 18.0%

Stock B Expected Return  (Wb)= 12%

Stock B Standard Deviation(SDB) = 3%  

Correlation Coefficient for Stock A and B (CC) = 0.50  

Risk Free rate of return(RFR) = 10%

Let plug in the formula

Stock A optimal risky portfolio=[(.16-.10)×.03²]-[(.12-.10)×.18×.03×0.50]÷ [(.16-.10 )×.03²+(.12-.10)×.18²]- [(.16-.10 +.12-.10 )×.18×.03×0.50]

Stock A optimal risky portfolio=(0.000054-0.000054)÷(0.000702-0.000216)

Stock A optimal risky portfolio=0÷0.000486×100%

Stock A optimal risky portfolio=0%

Inconclusion the proportion of the optimal risky portfolio that should be invested in stock A is 0%.

Learn more here:

brainly.com/question/21273560

6 0
2 years ago
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