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3 years ago

An increase in price causes an increase in total revenue when demand is

Business

1 answer:

nadezda [96]3 years ago

7 0

Answer:

elasticity of demand will be inelastic

Explanation:

Here in the question it is provided in the statement that with an increase in price there is an increase in total revenue

Therefore,

change in price and change in revenue will be positive

Mathematically,

$\frac{dR}{dP}$ > 0

Now,

When,

$\frac{dR}{dP}$ > 0

then,

the elasticity of demand will be Ed will be < 1

which means the elasticity of demand will be inelastic

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What has the biggest impact on whether a 4 year university is affordable?

Yuki888 [10]

Answer: Federal aid

Explanation:

Federal aid helps students with the cost of tuition for everyone. It allows for students to keep out of major debt.

4 0

3 years ago

The management of Truelove Corporation is considering a project that would require an initial investment of $321,000 and would l

Art [367]

Answer:

2.6 years

The appropriate response to carry out the project if the payback period is within the acceptable payback period of the company

Explanation:

Payback period calculates the amount of the time it takes to recover the amount invested in a project from its cumulative cash flows.

Payback period = amount invested / cash flow

Cash flows is used in calculating the payback period.

To derive the payback period from net income, add depreciation to net income

$82,000 + $42,000 = $124,000

$321,000 / $124,000 = 2.6 years

I hope my answer helps you

4 0

3 years ago

Fusaro Corporation uses a predetermined overhead rate base on machine-hours that it recalculates at the beginning of each year.

andrew-mc [135]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

Fusaro Corporation uses a predetermined overhead rate base on machine-hours.

Estimated total fixed manufacturing overhead= $684,000

Estimated activity level= 40,000 machine-hours

Actual activity level 37,700 machine-hours

First, we need to calculate the predetermined overhead rate:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= 684,000/40,000= $17.1 per machine hour

Now, we can allocate the manufacturing overhead:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 17.1* 37,700= $644,670

5 0

3 years ago

if a person is highly risk averse, the marginal utility associated with a negative outcome outweighs the marginal utility from a

Ratling [72]

If a person is highly risk averse, the higher marginal utility associated with a negative outcome outweighs the lower marginal utility from a positive outcome.

<h3>What is marginal utility?</h3>

The extra satisfaction which a consumer receives from possessing one more unit of an item or service is known as marginal utility.

The concept of marginal utility is helps in describing how customers make decisions to get the most out of their limited budgets. In general, until the marginal utility exceeds the marginal cost, consumers will keep buying more of a good.

There are three types of Marginal utility:

Positive Marginal Utility: When having more of something provides you more happiness, you have positive marginal utility. Assume you regularly eat a piece of cake, however a second piece would bring you even more joy. Then the marginal utility from cake consumption is positive.
Zero Marginal Utility: It occurs when using more of an item provides no additional measure of satisfaction. For instance, you might feel reasonably full after 2 pieces of cake but not significantly better after a third slice. Your marginal utility on eating cake is 0 in this situation.
Negative Marginal Utility: It occurs when you have an abundance of an item, and ingesting more is really hazardous. After eating three slices of cake, the fourth piece of cake may potentially make you sick.

To know more about Marginal utility, check out:

brainly.com/question/15050855

#SPJ4

6 0

1 year ago

To maximize profit, a perfectly competitive firm:_____.

dmitriy555 [2]

Answer:

Explanation:

A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.

In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.

Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.

Profit is maximised where marginal cost equals marginal revenue.

3 0

3 years ago