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3 years ago

Under which conditions is price elasticity of supply relatively elastic or relatively inelastic?

Business

1 answer:

Ulleksa [173]3 years ago

6 0

Answer:

1. Firms are operating in the short run - relatively inelastic

2. Firms would have a hard time storing their goods - relatively inelastic

3. Firms have a large amount of excess capacity - relatively elastic

4. Firms can easily relocate from one location to another - relatively elastic.

Explanation:

The price elasticity of supply is less in the short run than in the long run. In the short run supplier does not have enough time to adjust the production level so supply is inelastic. The firms facing hard to store their goods then the supply is inelastic. If the firm has spare capacity available then the supply is relatively elastic because supplier can produce more if the demand is greater. The mobility factor also effects elasticity, if firm can easily relocate itself then the supply is elastic.

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Cash outflows for McKinney Publishing in 2020 included:________. $347,000 in salaries to authors. $180,000 in fees to contracted

Marat540 [252]

Answer: $527,000

Explanation:

Salaries to authors = $347,000

Fees to contracted editors = $180,000

Copyrights obtained = $83,000

Purchase of a new printing warehouse = 1.3 million

Upgrade of current printing equipment = $560,000

McKinney Enterprises expense will be:

= Salaries to authors + Fees to contracted editors

= $347,000 + $180,000

= $527,000

4 0

2 years ago

Square Hammer Corp. shows the following information on its 2018 income statement: Sales = $206,000; Costs = $123,000; Other expe

EastWind [94]

Answer:

a. What is the 2018 operating cash flow?

$31,200 + $14,000 = $45,200

b. What is the 2018 cash flow to creditors?

-$13,100 - $3,100 = -$16,200 (it is negative since interests and principal were paid to creditors)

c. What is the 2018 cash flow to stockholders?

-$10,000 + $4,600 = -$5,400 (it is negative since more dividends were paid to stockholders than new equity raised)

d. If net fixed assets increased by $22,000 during the year, what was the addition to NWC?

net capital spending = depreciation + increase in fixed assets = $14,000 + $22,000 = $36,000

cash flow from assets = cash flow to creditors + cash flow to stockholders = -$16,200 - $5,400 = -$21,600

change in net working capital = operating cash flow + cash flow from assets - net capital spending = $45,200 - $21,600 - $36,000 = $12,400

Explanation:

net income = $206,000 - $123,000 - $7,900 - $14,000 - $13,100 - $16,800 = $31,200

8 0

3 years ago

13. Assume that Cane’s customers would buy a maximum of 80,000 units of Alpha and 60,000 units of Beta. Also assume that the raw

timurjin [86]

Answer:

80000 unit of Alpha

Explanation:

This is a Limiting factor/resource constraint question. In certain situations entities suffer from shortage of necessary resources (e.g: shortage of material, labor hours, machine hours), in such circumstances entities strive to allocate the constraint resources to the production of those products which generate the highest contribution per limiting factor and help maximize total contribution. In this case the limiting factor for Cane is Raw material.

Lets suppose that each unit of Alpha and Beta sell for $120 and $80 respectively and variable cost per unit of Alpha and Beta is $69 and $20 respectively. Each unit of Alpha and Beta require 2 and 5 pounds of raw material for production respectively.

Now that we have supposed the data we have to compute contribution per unit and then contribution per limiting factor and based on the ranking (i.e highest first) of contribution per limiting factor we decide which product should be given priority for resource allocation.

Lets calculate contribution per unit.

Alpha:

Contribution per unit= SP-VC

Where, SP stands for selling price and VC stands for variable cost.

CPU= 120-69

CPU=$51

Beta:

Contribution per unit= 80-40

CPU=$40

Now, lets calculate contribution per limiting factor.

Alpha:

CLF: $51÷2

CLF: $25.5 1st Rank

Beta:

CLF: $40÷5

CLF: $8 2nd Rank

So clearly Alpha has a greater contribution per limiting factor and it implies that Alpha will earn the highest contribution margin therefore Cane should produce and allocate resources to Alpha first and then Beta if there remains any?

Profit maximizing output:

It requires 2 pounds of raw material to produce one unit of Alpha (i.e 80000×2=160000) Therefore Cane should produce 80000 units of Alpha only in order to maximize its profits.

3 0

3 years ago

Squirrel tree services reports the following amounts on december 31, 2021.Assets Liabilities and Stockholders’ EquityCash $9,500

fiasKO [112]

Answer and Explanation:

1. The preparation of the balance sheet is presented below:

Squirrel tree services

Balance sheet

For the year ended December, 31, 2021

Liabilities Amount Assets Amount

and stockholder equity

Liabilities

Account payable $15,100 Cash $9,500

Salaries payable $5,300 Supplies $3,600

Note payable $38,000 Prepaid insurance $5,300

Total liabilities $58,400 Building $90,000

Equity

Common stock $40,000

Retained earnings $10,000

Total equity $50,000

Total liabilities & equity $108,400 Total assets $108,400

2. The preparation of the cash flow statement is presented below:

Squirrel tree services

Cash flow statement

For the year ended December, 31, 2021

Particulars Amount ($) Amount ($)

Cash flow from operating activities-

Cash inflows customers 96,000

Cash outflows salaries (40,000)

Cash outflows supplies (22,000)

Net Cash flow from operating activities (A) 34,000

Cash flow from investing activities-

Sale of investments 35,800

Purchase of building (98,000)

Net Cash flow from investing activities (B) (62,200)

Cash flow from financing activities

Borrowed from bank 38,000

Dividends (15,500)

Net Cash flow from financing activities (C) 22,500

Net increase in cash (A+B+C) (5,700)

Add: Cash at beginning of year 15,200

Cash at end of year 9,500

7 0

3 years ago

For many years, de beers of south africa essentially operated as a monopoly. what made this company a monopoly? de beers of sout

zzz [600]

It had almost exclusive control of the world's supply of diamond deposited, utilized to make diamond jewelry.

<h3>What is Monopoly?</h3>

A scenario known as monopoly occurs when there is only one seller in the market. The monopoly case is viewed as the polar opposite of perfect competition in conventional economic analysis. The industry's downward-sloping demand curve is, by definition, the demand curve that the monopolist faces.

A monopoly is described as a single producer or seller who forbids rivals from offering the same product. A monopoly has the power to set prices and makes it difficult for rivals to enter the market. A market arrangement known as a monopoly consists of a single seller who has complete authority over a good or service. The prefix polein, which comes from Greek and means "to sell," and the word mono both indicate single or one.

Hence, It had almost exclusive control of the world's supply of diamond deposited, utilized to make diamond jewelry.

To learn more about Monopoly refer to:

brainly.com/question/13113415

#SPJ4

5 0

2 years ago