Answer:
C. because it does not produce enough oil.
Explanation:
Although, the United States is one of the leading producers of oil, yet still import oil because it does not produce enough oil to meet the demand of its citizens. In other words, the United States consumes more than what she can produce.
Another reason is that most refineries in the United State are created basically for heavy crude whereas most of what she produce are light crude oil. The United States import the oil she is able to process while she export to other countries to complete the setup process.
The remedy to the above situation is when new refineries are built which are somewhat expensive or the existing refineries are upgraded to meet with the demand.
The supply curve shifts to the left when crabs disappear (their price rises) and shift to the right when they reappear (their price declines).
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Explanation:</u></h3>
When the demand of any product remains constant the shifting of the supply curve will be positive and the shift will be towards the right. This will cause the prices of that product to get reduced and there will be an increase in the quantity of the product.
A change which is negative in supply curve happens causing the supply curve to move towards the left thereby causing the prices to raise and the quantity will be reduced. In the example give, the situation that bets describes the market of King crab market will be the supply curve shifts to the left when crabs disappear (their price rises) and shift to the right when they reappear (their price declines).
First, you'll want to break down each item:
Sale price of a bear - $35
Fixed cost - $1,500
Variable cost of a bear - $24
If she sells 275 bears next month we will determine:
Margin of safety in units
Margin of safety in sales dollars
Margin of safety as a percentage of sales
Next, we will determine the dollar amount of sales and costs by multiplying the units sold by the price sold/cost of good
275 x $35 = $9,625
275 x $24 = $6,600
Fixed costs = $1,500
To find the margin of safety as a percentage of sales we will subtract the breakeven point from the current sales level and then divide by the current sales level
(Current sales level - breakeven point)/current sales level
$9,625 - $8,100 (fixed costs + cost of good)/ $9,625 =
15.84% is the margin of safety as a percentage
To find the margin of safety in unites we will subtract the breakeven point from the current sales level and then divide by the price per unit sold
$9,625 - $8,100 / 35 = 43.57 units is the margin of safety as a unit
To find the margin of safety in sales dollars we will subtract the breakeven sales from actual sales
$9,625 - $8,100 = $1,525 is the margin of safety in sales dollars
You can also find the margin on sales as a percentage after finding the margin of safety in sales dollars by taking the margin of safety in sales dollars and dividing it by the actual sales and then multiplying it by 100.
$1,525/$9,625 = 0.1584 x 100 = 15.84%
Answer:
$78.35
Explanation:
Given:
Future value = $750
Maturity time = 5 years
Annual rate = 5%
Now,
Future value = P × ( 1 + r )ⁿ
Where, P is the present value of the bonds
r is the rate of interest
n is number of periods
on substituting the values, we get
$100 = P × ( 1 + 5% )⁵
or
$100 = P × ( 1.05 )⁵
or
P = $78.35
Hence, the state should sell its bond at a price of $78.35