If an entrepreneur can establish a strong and trustworthy management team, then the

sdas [7]

Answer:

B. decreases the equilibrium quantity of land below the efficient level and creates a deadweight loss

Explanation:

An efficient economy is one whose equilibrium between supply and demand for land is due to endogenous factors via price. Under the law of supply and demand, price will be the adjustment vector that will balance the land market.

When the government introduces a tax, the price parameter changes, introducing an inefficiency called deadweight. Deadweight is a term widely used in economics to designate efficiency losses in markets when a tax is introduced. Thus, the economy will move from its natural equilibrium to a new artificial equilibrium, where the amount traded will be smaller than before.

3 0

3 years ago

The cost of goods sold computations for Alpha Company and Omega Company are shown below. Alpha Company Omega Company Beginning i

olya-2409 [2.1K]

Answer:

Alpha Company:

inventory turnover ratio = 3.62
days in inventory = 101 days

Omega Company

inventory turnover ratio = 4.13
days in inventory = 89 days

Explanation:

Alpha Company Omega Company

Beginning inventory $49,500 $71,000

Cost of goods purchased $200,000 $299,000

Cost of goods available

for sale $249,500 $370,000

Ending inventory $57,000 $73,000

Cost of goods sold $192,500 $297,000

inventory turnover rate = cost of goods sold / the average inventory

average inventory = (beginning inventory + ending inventory) / 2

days in inventory = 365 days / inventory turnover ratio

Alpha Company Omega Company

average inventory $53,250 $72,000

inventory turnover $192,500 / $53,250 $297,000 / $72,000

= 3.62 = 4.13

days in inventory 365 / 3.62 365 / 4.13

= 100.83 ≈ 101 days = 88.38 ≈ 89 days

6 0

2 years ago

Suppose the demand for good X is given by Qd x = 10 - 2Px + Py + M. The price of good X is $1, the price of good Y is $10, and i

tekilochka [14]

Answer:

Option D.

Explanation:

The demand function for good X is

$Q_x^d=10-2P_X+P_Y+M$

where, $P_X$ is price of good X, $P_Y$ is price of good Y and M is income.

It is given that the price of good X is $1, the price of good Y is $10, and income is $100.

Substitute $P_X=1$ , $P_Y=10$ and M = 100 in the given function.

$Q_x^d=10-2(1)+(10)+(100)$

$Q_x^d=10-2+110$

$Q_x^d=118$

None of the statements associated with this question are correct.

Therefore, the correct option is D.

3 0

3 years ago

The Quorum Company has a prospective 6-year project that requires initial fixed assets costing $962,000, annual fixed costs of $

diamong [38]

Answer:

5375

Explanation:

Given that:

Initial Fixed assets costing = $962000

Annual fixed costs = $403400

Variable cost per unit = $123.60

Sales price per unit = $249.00

Discount rate = 14%

Tax rate = 21%

The contribution per unit = Sales price - Variable cost

= $(249.00 - 123.60)

= $125.40

The present value break-even point(BEP) is the region of sales level where the net present value (NPV) equals zero.

Assuming that the sales level = p

i.e.

NPV = PV(of inflows - of outflows)

Inflows = (p * contribution per unit - annual fixed cost)( 1- tax rate) + depreciation * tax rate

= (p * 125.4 - 403400) ( 1 - 0.21) + depreciation * tax rate

where;

depreciation = initial fixed assest cost/ lifetime of the project

= (125.4p - 403400)*0.79 + (962000/6)*0.21

= (125.4p - 403400)*0.79 + (160333.33)*0.21

= (125.4p - 403400)*0.79 + 33670

Now, the PV of the inflows =PV factor(6 years, 14%) * inflows

$= inflows * \dfrac{( 1-(1.14)^{-6})}{0.14}$

$= inflows * 3.8887$

Replacing the value for inflows, we have:

$=((125.4p - 403400)*0.79 + 33670)* 3.8887$

The PV of the outflows = Initial Fixed asset cost = $962000

∴

Equating both together using:

PV(of inflows - of outflows) = 0

((125.4p - 403400)*0.79 + 33670)* 3.8887 - 962000 = 0

((125.4p - 403400)*0.79 + 33670)* 3.8887 = 962000

(99.066p - 318686 + 33670) * 3.8887 = 962000

(99.066p - 285016) * 3.8887 = 962000

385.24p - 1108341.72 = 962000

385.24p= 962000 + 1108341.72

385.24p= 2070341.72

p = 2070341.72 / 385.24

p ≅ 5375

6 0

2 years ago

Calculate the gross margin in both dollars and percentage for this swim department if net sales are $1,150,000 and cost of goods

yawa3891 [41]

The gross margin ratio is also known as the gross profit margin or the gross profit percentage.

The gross margin ratio is computed by dividing the company's gross profit dollars by its net sales dollars.

swim department net sales--------------------- $1,150,000

cost of goods sold -------------------------------- $638,400

This means its gross profit is $511,600 (net sales of $1,150,000 minus its cost of goods sold of $638,400) and its gross margin ratio is 44% (gross profit of $511,600 divided by net sales of $1,150,000).

6 0

3 years ago