The value created by firms in the form of goods and services are distributed among various economic entities that consume them such as private consumers, government etc. But a closed circular flow diagram does not depict the other external values created. For example, a private college is a firm that produces education or provides education as a service to individuals who pay for it. This has a positive externality on society since these students can later teach others in society. Also firms produce under certain conditions and surveillance.
Firms can gain a certain control over society by studying the elasticities of demand. Also, firms generate certain expectations regarding wages and other social benefits. On the other hand, firms are controlled by governmental policies such as minimum wage laws, pricing laws etc. Such policies bind the full potential output if the potential output is not in confluence with social goals or maximization of social welfare.
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I think it’s only debtors allowance
Answer:
The correct answer is C.
Explanation:
Giving the following information:
Free Spirit Industries Inc. is considering a project that will have fixed costs of $10,000,000. The product will be sold for $37.50 per unit and will incur a variable cost of $10.75 per unit. The firm will be able to sell only about 200,000 units.
Price= ?
We need to calculate the price using the break-even formula:
Break-even point= fixed costs/ contribution margin
200,000= 10,000,000/ (P - 10.75)
200,000P - 2,150,000 = 10,000,000
P= 12,150,000/200,000
P= $60.75 per unit
Answer:
Money to be paid by each partner individually is $112,500
Explanation:
Let A and B are partners of a share amount Z
If A's amount is x and share of B's amount is y, then share of A is calculated as
x / (x + y) * z
Number of partners in Pizzarie is 6 with all having equal shares
Value of business is $675,000
Damage to be paid is $1.2 million
Hence, the money to be paid by each partners individually is:
= $675,000 / 6
= $112,500
Therefore, money to be paid by each partner individually is $112,500