Answer:
(a) $61.11
(b) $54.44
Explanation:
1)
Value of Stock = Benchmark price-sales ratio × Stock's sales
= 5.5 × 1,500,000
= $8,250,000
Thus,
Price of stock = Value of Stock ÷ shares outstanding
= 8,250,000 ÷ 135,000
= $61.11
Thus, I would pay $61.11 for the stock.
2)
Value of Stock = Benchmark price-sales ratio × Stock's sales
= 4.9 × 1,500,000
= $7,350,000
Thus,
Price of stock = Value of Stock ÷ shares outstanding
= $7,350,000 ÷ 135,000
= $54.44
Thus, I would pay $54.44 for the stock.
If the opportunity cost of producing extra units of one good (expressed in terms of the amount of another good given up) remains constant, then the shape of the production possibilities curve is a straight down sloping line.
<u>Explanation:</u>
The cumulative production output of two products with a given input value is determined by the production potential curve. Every point in the curve indicates how much of every good is generated as resources transfer from more than one good to lesser. The input is a mixture of the four means of production.
The type of a PPF is generally derived from the source as a function of an additional cost of production and a better value. As the PPF is shifted from the top left to both the lower right corner of the PPF, MRT is therefore decreased in absolute size.
Answer:
d. reduce interest rates to shift aggregate demand right.
Explanation:
If the Federal Reserve supports the incumbent, they would want that she wins the election. In order to do so they may want to stimulate the economy.
To do so, they may reduce interest rates. This increases the opportunity cost of saving, and thus people instead of saving, will take their money out and spend it. Which in turns shifts the aggregate demand curve to the right.
During 1970, the "year of the environment," all of the following occurred except<u>__the Clean Water Act was enacted_</u><u>[</u><u>enacted</u><u> </u><u>on</u><u> </u><u>1</u><u>9</u><u>7</u><u>2</u><u>]</u><u>.</u><u />
Answer:
20 is the socially optimal number
Explanation:
In this question, we are asked to calculate the socially optimal number of clean streets given the marginal cost of cleaning them.
To solve this problem, we employ a mathematical approach as follows:
Market demand = Sum of Individual demand
Magaret demand = p = (50-Q)/2 = 25-0.5Q
Thomas demand = P = 40-Q
Market demand = 25-0.5Q + 40-Q = 65-1.5Q
MC = 35
Socially optimal number = MC = Market demand
35 = 65-1.5Q
30 = 1.5Q
Q = 20
