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Answer
Investment equals B) $500
Explanation:
We first lay out the national income identity in this form:
Y-C-G = I + NX
Where:
Y-C-G = National Saving
I = Investment
NX = Net exports (when NX is posivite, the economy is running a trade surplus).
National Saving = Private Saving + Public Saving (Tax revenue minus Government spending ($400 - $300))
National Saving = $500 million + $ 100 million
National Saving = $600 million
Now we plug the amounts into the identity =
$ 600 million = I + $ 100 million
We rearrange terms
$600 million - $100 million = I
$500 million = I
So, Investment is $500 million
Answer:
Yankee = 66,900 units
Zoro = 156,100 units
Explanation:
<em>Break Even Point = Fixed Costs / Contribution per unit</em>
= $23,415,000 / ((3×$175) + (7×$75))
= $23,415,000 / $1,050
= 22,300
Yankee = 22,300×3
= 66,900
Zoro = 22,300×7
= 156,100
Answer:
$16,400
Explanation:
Depreciation for 2020 is calculated as;
= (Cost - Nill value) × 50% × 6/12[July to December)
Given that ;
Cost = $65,600
Depreciation = ($65,600 - 0) × 0.5 × 6/12
Depreciation = $16,400
Therefore, depreciation for 2020 is $16,400.
Answer:
Option E : $9.75
Explanation:
As per the data given in the question,
The standard reaction function of industry = a-Cb ÷ 2b - 1 ÷ 2 × Qa
P = 30 - (Qa + Qb)
Here, a= 30
b= 1
C = 3
Leader's output (Qa) =( a + Cb - 2Ca ) ÷2b
= (30 + 3 × 1 - 2 × 30) ÷ 2×1
= 13.5 units
Reaction function of industry B,
Qb = 13.5 - 1 ÷ 2 × 13.5
Qb = 6.75 units
P = 30 - (13.5+6.75)
= $9.75
Hence Option E is answer.
