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Blizzard [7]
3 years ago
14

You and your college roommate eat three packages of Ramen noodles each week. After graduation last month, both of you were hired

at several times your college income. You still enjoy Ramen noodles very much and buy even more, but your roommate plans to buy fewer Ramen noodles in favor of foods she prefers more. When looking at income elasticity of demand for Ramen noodles, yours woulda. be negative, and your roommate's would be positive b. be positive, and your roommate's would be negative c. be zero, and your roommate's would approach infinity d. approach infinity, and your roommate's would be zero.
Business
1 answer:
My name is Ann [436]3 years ago
3 0

Answer:

yours would be positive and your roommate's would be negative.

Explanation:

Income elasticity of demand is defined as the change in quantity demanded as a result of changes in income earned by an individual. It is calculated by finding a ratio of percentage change in quantity demanded to percentage change in price.

Since there is an increase in the noodles I take with increase in income the numerator of this ratio will be positive, and the denominator will be positive indicating income increase. So the ratio will be positive.

On the other hand my roommate buys less of Ramen noodles so the numerator will be negative. The denominator will be positive to indicate increased income. The result of the income elasticity in this case will be negative.

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Suppose that the production function faced by a 30-weight ball bearing producer is given by Q- 4KL, where MP = 2K2 and MP = 2K L
Delicious77 [7]

Answer and Explanation:

The answer is attached below

6 0
3 years ago
Mallory Furniture buys two products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 1
Ghella [55]

Answer:

The answer is D

Explanation:

Solution:

Recall that:

Malloy Furniture purchases two products: Big shelves B and Medium shelves M

The cost of big shelf is =$500

The space required = 100 cubic feet

The cost of each medium shelf is =$300

Storage space = 90 cubic feet,

Now,

Since the values 100 and  90 is greater than 18000 cubic feet available for storage, what is required would be 100 big shelves and 100 medium shelves

5 0
3 years ago
the graph to the right depicts the per unit cost curves and demand curve facing a shirt manufacturer in a competitive industry 2
natulia [17]

The firm will exit or leave the industry as its not making any profits.

<h3><u>CALCULATION OF THE PROFITS</u></h3>

According to the Question,

The firm produces at P = MC

Where we know,

Q = 55 units

P = $4.78

ATC or Average Total Cost = 6.76

AVC or Average Valuable Cost = 3

P > AVC so the firm produces to minimize losses at the MC = P.

Profit = ( P - ATC ) × Q

=( 4.78 - 6.76 ) × 55

= - 108.9

The profit is - 108.9 dollars per minute.

As the firm in the industry is making losses ( a negative profit ) so it  will exit the industry in the long run.

To know more about competitive firms, check the given link.

brainly.com/question/28104159

#SPJ4

8 0
2 years ago
Mr. Boyd and Ms. Tuck decide to form a new corporation named BT Inc. Mr. Boyd transfers $10,000 cash and business inventory ($20
kicyunya [14]

Answer:

1. Mr Boyd's share = 400, Ms Tuck = 800

2. Mr Boyd's realised gain = $16,800, recognized gain = $0, basis = $13200

Ms Tuck's realized gain = $18500, gain recognized = 0, basis = $41500

Explanation:

1.

Total share = $1200

Cash received from Mr Boyd = 10000

FMV from him = 20000

Total value = 30000

FMV of equipment from Ms Tuck = 60000

Total value from both of them = 60000 + 30000 = $90000

Number of share Mr Boyd is to receive = 1200x(30000/90000)

= 400

Number of share Ms Tuck is to receive

= 1200x(60000/90000)

= 800

2.

<u>Mr Boyd's gains</u>

Cash received = 10000

FMV = 20000

Total = 30000

Adjusted basis = 3200

Total tax basis = 10000+3200

Gain realized = 30000-13200

= 16800

Gain realized = 0 because it is a non taxable exchange.

Mr Boyd's realised gain = $16800, recognised gain = $0, basis = $13200

<u>Ms Tuck</u>

FMV = 60000

Adjusted tax basis = 41500

Gain realized = 60000-41500

= 18500

Gain recognized = 0(non taxable exchange)

Ms Tuck's realized gain = $18500, recognized gain = $0, basis = $41500

3

the FMV basis of inventory = 20000

carryover basis = 3200

equipment basis FMV = 60000

carryover basis = 41500

note that no gain if equal to or more than 80 percent of the ownership of the stock in a non taxable exchange.

6 0
3 years ago
Nce managers of The Grecian Urn have decided on their product concept and marketing strategy, they can evaluate the business att
Nataliya [291]

Answer:

2. feasibility study

Explanation:

A feasibility study is done to analyse whether for example a school should or not expand the building open new sections and so on. the study also evaluates for labor and work in progress. It is an analysis of a proposed project to determine whether it is feasible and should go further. Feasibility is further divided into different categories such as economical , technical, operational etc. It aims to check the competitiveness of the business in the market and check its economic growth.

6 0
3 years ago
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