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2 years ago

Assume an economy with two rms. Firm A produces wheat and rm B produces bread. In a given year, rm A produces

Business

1 answer:

andrey2020 [161]2 years ago

8 0

Answer:

(a) Product approach;

The value of Firm A’s production 50,000 *$3=$150,000.

The value of Firm B’s production 50,000 * $2= $100,000.

Firm B pays $60,000 to firm A for 20,000 bushels of wheat, which is an intermediate input. Firm B’s value added is therefore $40,000. GDP is therefore equal to $190,000.

(b) Expenditure approach:

Consumers buy 50,000*$2/loaf and 15,000*$1/loaf.

Consumption spending is therefore equal to $100,000 + $15,000 = $115,000.

Firm A adds 5,000 bushels* $3= $15,000.

Firm A exports 25,000 * $3= $75,000.

Consumers import 15,000 * $1=$15,000.

Net exports are equal to $75,000- $15,000 = $60,000. There is no government spending. GDP is equal to consumption ($115,000) plus 3 investment ($15,000) plus net exports ($60,000). G

DP =$190,000.

Firm A pays $50,000 in wages+ Firm B pays $20,000 in wages= $70,000. Firm A produce $150,000 - $50,000 in wages=. $100,000 profits.

Firm B produces $100,000 -$20,000 in wages- $60,000 to Firm A for wheat=$20,000 profits

Total profit income in the economy equals $100,000+ $20, 000 = $120,000. Total wage income ($70,000) plus profit income ($120,000) equals $190,000. GDP is therefore $190,000.

Explanation:

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A firm that successfully differentiates its product or lowers its average cost of production creates A. a perfectly inelastic de

zhenek [66]

Answer:

The correct answer is D. value for its customers.

Explanation:

Generating value for the client means giving something in which he feels really grateful, having fulfilled what was expected or, even better, having fulfilled what was needed and what was wanted.

For example, the delivery of the product on the agreed date, the ease of the process of both buying and using the product or service, the attitude of the team when it comes to serving the customer, solving a problem in an effective way, making a conversation enjoyable at the time it is paid, etc.

Generating added value for the customer is not about magic. It is simply that the customer perceives a positive difference. Let him see that it is a different place and concerned about the most important details for the benefit of the client.

The key to giving value to your customers is in the small details, so it is time to start with the business to offer it.

5 0

3 years ago

dditional Information Accrued sales salaries amount to $2,400. Prepaid selling expenses of $2,100 have expired. A physical count

saul85 [17]

Answer:

A) Adjusting entries:

Dr Sales salaries expense 2,400

Cr Sales salaries payable 2,400

Dr Selling expenses 2,100

Cr Prepaid selling expenses 2,100

Dr Cost of goods sold 3,700

Dr Merchandise inventory 3,700

B) prepare the closing entries

Dr Sales revenue 550,900 (net = $557,000 - $19,900 - $6,200)

Cr Income summary 550,900

Dr Income summary 484,200

Cr Cost of goods sold 239,700 (net = $236,000 + $3,700)

Cr Sales salaries expense 62,400 (net = $60,000 + $2,400)

Cr Selling expense 44,100 (net = $42,000 + $2,100)

Cr Utilities expense 21,000

Cr Administrative expense 117,000

Dr Income summary 66,700 (= $550,900 - $484,200)

Cr Retained earnings 66,700

Dr Retained earnings 45,000

Cr Dividends 45,000

7 0

3 years ago

Explain the different management tasks.

zysi [14]

Answer:

planing

organizin

controlling

leading

5 0

2 years ago

Internet access to use online banking costs you $39.99 per month. A book of checks costs you $17.95 per 100. Your bank charges y

algol [13]

Answer:

$21.9275

Explanation:

The cost of online banking is $39.99

The cost of checks books is $17.95 per 100. The cost associated with 25 checks

= $17.25/100 x 25

=0.1725 x 25

=$4.3125

The cost of a stamp is 50 cents, which is $0.50

for 25 checks

=$0.50 x 25

=$12.5

The writing fee

=$0.05 x 25

=$1.25

Total cost of using checks

= $4.3125 + $12.5 +$1.25

=$18.0625

the difference between online banking and checks

= $39.99 - $18.0625

=$21.9275

6 0

3 years ago

You are trying to explain to your friends the importance of using real GDP to measure economic health over time, but some of the

Yuri [45]

Answer: $15,909.09

Explanation:

Nominal GDP is the value of goods and services that is calculated on the basis of current year prices whereas Real GDP is the value of goods and services that is determined on the basis of Base year prices. If we are using the identical price for both the years for calculating GDP then we can see the increment in the current year GDP from the last year. This means that the quantity of goods produced in the current year is larger than the last year. That's why it is important to use Real GDP rather than Nominal GDP.

Given that,

Nominal GDP (millions of dollars) = $14000

Price level (GDP deflator) = 88

$\text{GDP dflator}=\frac{Nominal\ GDP}{Real\ GDP}\times100$

$\text{88}=\frac{14,000}{Real\ GDP}\times100$

Real GDP = 159.09 × 100

= $15,909.09

Hence, Real GDP = $15,909.09.

Therefore, Real GDP is greater than Nominal GDP hence we can say that the amount of good produced is worth more than $14,000.

3 0

3 years ago