Answer:
Producers experience lower costs than society
Explanation:
In the case when the market excess produce the goods that contains the external cost so it should be because of producers would have less cost as compared to the society that means the private equilibrium cost should be less than the social equilibrium cost
So as per the given situation, the above statement should be true
Answer:
DR. CR.
Inventory Premium $6,880
Cash $
6,880
Cash $
339,200
Sales $
339,200
Premium Expense $3,464
Inventory Premium $3,464
Premium Expense $1,624
Premium Liability $1,624
Explanation:
Inventory Premium = 8,600 x $0.80 = $6,880
Sales = 106,000 unit x $3.20 = $339,200
Premium Expense = (43,300/10) x $0.8 = $3,464
Premium Liability = (((106,000 x 60%) - 43,300) / 10) x $0.8 = $1,624
Answer: Expansionary monetary policy to prevent real GDP from falling below potential real GDP would cause the inflation rate to be relatively higher and real GDP to be relatively higher.
Explanation: The expansionary monetary policy - a central bank uses their tools to stimulate the economy. A central bank pay increase the supply of money, lower interest rate and help increase demand. Real GDP (gross domestic product) is adjusted for inflation to show the value of all goods and services that an economy produced in any given year.
Answer: Option (B)
Explanation:
This is because under this scenario the holder in due time of the negotiable instrument tends to have the priority over the early perfected known security interest, also the best known way in order to perfect the security interest under an negotiable instrument is done by taking possession of the instrument, since doing so prevents the later individual from adapting to the holder in due time.
Answer:
200 standard scooters and 600 standard scooters
Explanation:
The computation of the each type of scooter to break even is shown below:
As we know that
Contribution margin per unit = Selling price per unit - variable cost per unit
So for standard scooter, it is
= $55 - $30
= $25
And, for chrome scooter, it is
= $70 - $40
= $30
Plus, it is given that the ratio between standard scooter and chrome scooter = 1 : 3
Now the weighted average contribution margin per unit is
= $25 × 1 ÷ 4 + $30 × 3 ÷ 4
= $6.25 + $22.50
= $28.75
So,
Break even units = Fixed costs ÷ weighted average contribution margin per unit
= $23,000 ÷ $28.75
= 800 units
So for standard scooter, it is
= 800 × 1 ÷ 4
= 200 standard scooters
And for chrome scooter, it is
= 800 × 3 ÷ 4
= 600 chrome scooters