Answer:
See explaination for the details of the answer.
Explanation:
1) Increase
As business is optimistic about its future, such business will start capacity expansion to cater for consumer demand.
2) Decrease
Higher real interest rate simply means borrowing cost is higher for the firms and so that they will reduce the investment in respose to that.
3) Decrease
A lower tax means higher profits and firms can pass these benefits to consumers with lower prices, to employees with higher wages and to the government with tax on profit. However, if the rate of tax itself has been increased then in that case corporates will see higher tax as a dampener in sentiments and they might curtail investment plans.
4) Decrease
A recession means there will be lesser economic activity overall and demand will be lower so as the consumption. In such case, planned investment will be reduced.
Answer: Dynamic of need
Explanation: There are two words of importance here. Dynamic and need.
Dynamic: when a person, place, or thing is energetic and active, this is know as being dynamic.
When something is dynamic it goes through a lot of process. Example: Someone with a dynamic personality is usually funny.
Need: to require something because it’s important or very essential.
Dynamic of need is when you have a active need of things, this things can be information which are very essential.
Answer:
a. 8,000 + 1,000 + 3.2Q
b. 27,000 + 3.2Q
c. 15,000 Units
Explanation:
a. The accounting cost function is shown below:-
Accounting cost function = Fixed Leasing and insurance cost + material cost and supplied cost
= 8,000 + 1,000 + 3.2Q
b. The economic cost function is shown below:-
Economic cost function = Accounting cost + Opportunity cost
= 9,000 + 3.2Q + 3*6,000
=27,000 + 3.2Q
c. The computation of break even point is shown below:-
Break even Point = Total Fixed Cost ÷ Price - Average Variable cost
= 27,000 ÷ 5 - 3.2
= 15,000 Units
Answer:
C. 120
Explanation:
The computation is shown below:
(L × K)
<u>Labor L Capital K Quantity of Output Q Total cost TC</u>
1 2 2 $40
2 4 8 $80
(2 × $20 + 4 × $10)
3 6 18 $120
(3 × $20 + 6 × $10)
4 8 32 $160
(4 × $20 + 8 × $10)
As we can see that if we considered 3 units of labor so the total cost is $120
Hence, the correct option is c.
Answer:
Because he is able to cover the variable cots, he should keep going in the short run. He must increase the number of walks to cover the fixed costs.
Explanation:
Giving the following information:
Kay walks dogs for $7.50 each. Her total cost each day is $45—she spends $35 a day on gas driving to different neighborhoods, and her liability insurance and other fixed costs average out to $10 per day.
Kay walks five dogs a day.
Income= 7.5*5= $37.5
Total cost= 45
Loss= (7.5)
Because he is able to cover the variable cots, he should keep going in the short run. He must increase the number of walks to cover the fixed costs.
