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oksian1 [2.3K]
4 years ago
10

Adam Smith, the father of

Business
1 answer:
Nonamiya [84]4 years ago
3 0

Answer:

The "diamond-water" paradox.

Explanation:

Adam Smith in his book <em>The wealth of nations</em> posted a question consisting the comparison between the price of diamond and water.

His idea was that why the price of diamond is so high as it has no importance in human life, and why the price of water is so low when it is highly significant for human life. One cannot die, if he doesn't have a diamond under his pillow although he will die if water is not given to him for days.

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On a shopping​ trip, Melanie decided to buy a light blue coat made from woven fabric. A tag on the coat stated that the price wa
ra1l [238]

Answer:

Consumer surplus is $15.99.

Explanation:

Melanie decided to buy a coat priced $79.95.  

When she brought a coat to the sales clerk, she found out that it is on a 20% discount and she has to $15.99 less than the original price.  

This means that her consumer surplus is at least $15.99.  

The consumer surplus is the difference between the maximum price a consumer is willing to pay and the price it actually pays.  

Melanie was willing to pay $79.95. But she actually paid $63.96. The difference between the two is $15.99.  

6 0
3 years ago
An appraiser has been hired to prepare an appraisal on a property that includes an elegant old mansion that is now used as an in
padilas [110]

Answer:

<em>c. gross rent multiplier approach </em>

Explanation:

Gross Rent Multiplier (GRM) is the cost ratio of an investment in immovable property to its annual rental income before paying for costs such as property taxes, insurance and utilities. It is the number of years that the estate will take to pay itself in gross rent.

<em>Simply multiply the Gross Rent Multiplier (GRM) by the gross rents of the property to calculate the value of a commercial property using the Gross Rent Multiplier valuation approach.</em>

Divide the selling price or value of an estate by the gross rents of the land of the subject to determine the Gross Rent Multiplier.

6 0
3 years ago
Sometimes bonds currently sell for ghs 1,150. they have a 6.75% annual coupon rate and a 15-year maturity and are callable in 6
ipn [44]

The rate of return should an investor expect to earn if he or she purchases these bonds is 4.81%

<h3>What is rate of return?</h3>

A return in finance is a profit on an investment. It includes any change in the investment's value and/or cash flows received by the investor, such as interest payments, coupons, cash dividends, stock dividends, or the payoff from a derivative or structured product.

Annual Rate of Return: Definition and Calculation

For example, if an investment is worth $70 at the end of the year and was purchased for $60 at the start of the year, the annual rate of return is 16.66%.

A good return on investment is generally thought to be around 7% per year. Based on the historical average return of the S&amp;P 500 after correcting for inflation, this is the barometer that many investors utilize.

(complete solution in attached image)

To know more about rate of return follow the link:

brainly.com/question/24301559

#SPJ4

4 0
1 year ago
A study was done to determine the average commute time per week to and from class for an spc student attending a lecture class.
Blababa [14]

All SPC students who attend lecture classes

6 0
3 years ago
During the first month of operations ended July 31, YoSan Inc. manufactured 2,400 flat panel televisions, of which 2,000 were so
soldi70 [24.7K]

Answer:

1) YoSan Inc.

Income Statement

For the month ended July 31, 202x

Sales revenue                            $2,150,000

<u>- Cost of goods sold                  $1,520,000</u>

Gross profit                                  $630,000

<u>- S & A expenses                        $300,000</u>

Operating profit                          $330,000

2) YoSan Inc.

Income Statement

For the month ended July 31, 202x

Sales revenue                                                    $2,150,000

- Variable costs:

  • Direct materials $800,000
  • Direct labor $350,000
  • Variable manufacturing cost $130,000
  • Variable S & A expenses $170,000        <u>$1,450,000  </u>

Contribution margin                                            $700,000

- Period costs:

  • Fixed manufacturing cost $288,000
  • Fixed S & A expenses $96,000               <u> $384,000  </u>

Operating profit                                                   $316,000

3) When you prepare a variable costing income statement, the ending inventory of finished goods and WIP only includes variables costs. All fixed or period expenses are included during the period that they occur and are not carried over to the next period. I.e. the ending inventory (400 units) for next month will be lower under variable costing.

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