Answer:
The business manager should assume that the building expense is fixed.
Explanation:
Fixed costs are not correlated with the revenue levels. Within the relevant range, fixed costs remain constant. They do not vary with the activity levels as variable costs do. For example, a manufacturer must pay for rent, repairs and maintenance, and utility bills irrespective of the revenue levels at which it is operating. This is why the business manager always discovers that the building expense each month does not correlate with the revenue levels, unlike the product's variable costs.
Answer:
$700,000
Explanation:
The portion of the long term note payable that is due within one year must be reported as current portion of long term debt (CPLTD) and must be included under current assets. In this case, the current portion of the long term debt is $100,000, so the portion that must be reported as long term debt is $800,000 - $100,000 = $700,000.
Answer:
A monopsony is market where there is only one buyer, e.g. the government is the sole buyer for nuclear submarines in the US.
The demand curve of a monopsony is similar to the demand curve of any other type of market, i.e. it is downward sloping. Since there is only 1 buyer, the demand curve is also the supply curve. If the monopsonist wants to increase the quantity demanded at a lower price, the supplier (or suppliers) must be able to lower its costs and that generally results in lower labor costs.
Answer:
It would be C. If this question has more than one answer, then it would be C & E
Explanation:
Answer:
Price elasticity of demand shows how much a 1% change in the price of a good or services changes the quantity demanded.
In the short run, a 10% increase in price decreases quantity demanded by 4%
PED short run = % change in price / % change in quantity = 4% / 10% = 0.4
PED long run = % change in price / % change in quantity = 7.5% / 10% = 0.75
Both PEDs are inelastic since they are less than 1, which means that an increase in price will result in a proportionally smaller decrease in the quantity demanded. But the PED in the long run is less inelastic, which means that an increase in price will decrease the quantity demanded more in the long than in the short run.
This happens because smokes consider that cigarettes are a basic necessity, so they are willing to purchase them even if the price increases. But as time passes (long run), more smokers will consider that it is not worth paying that much for cigarettes and will probably quit smoking or at least reduce the number of cigarettes they smoke per day.
