This Question is not complete.
Complete Question:
Refer to Exhibit 23-9. Assume that demand increases from D1 to D2; in the new long run equilibrium, price settles at a level between P1 and P2 This means that the industry in question is a(n) __________-cost industry.
a. Decreasing
b. Increasing
c. Constant
d. Marginal
e. Low
Answer:
b. Increasing
Explanation:
An increasing cost industry is an industry where the cost of producing goods increases, due to the emergence of new industries.
As the entrance of new industries continue to increases, raw materials and supplies become very scarce, this causes the competition between the companies to increase.
An Increasing cost industry is an examples of a perfectively competitive industry. One of the major factors that can cause the emergence on an increasing cost industry is the increase in the demand of goods which results in the increase in production cost.
Examples of Increasing cost industries are industries that produce:
a. Gold
b. Copper
c. Silver
The supply of raw materials required for production by an increasing cost company is going to be available in small quantities and also very scarce therefore we can say the supply of raw materials is finite or limited.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Selling and administrative expenses consist of $400,000 in annual fixed expenses and $2 per unit in variable selling and administrative expenses. The company's product cost of $30 per unit is computed as follows. Direct materials $ 4 per unit Direct labor $ 16 per unit Variable overhead $ 4 per unit Fixed overhead ($600,000 / 100,000 units) $ 6 per unit.
We don't have the information of selling price and units sold.
Income statement:
Sales
Variable costs:
Direct material
Direct labor
Variable manufacturing overhead
Total variable cost (-)
Contribution margin
Fixed costs (-)
Net operating income
Answer: A- few product lines with many items in each
Explanation: A company with shallow product line depth and broad product line breadth would have few product lines with many items in each.
This means that a shallow product line depth is a few product lines. The company has limited variety of product.
While the broad product line breadth means that the company has many items available.
Answer:
magine that you work for a life insurance company. You are setting premiums for insurance based on life expectancy. Assuming you charge a higher premium for people expected to have shorter lives, you know that ____older people____ will generally pay more for life insurance than ___younger people_____.
Explanation:
Setting life insurance premiums take into consideration the age of the insured (insurance policyholder). Other factors considered in setting premiums are gender, medical history, hobby, and career. Insurance premiums are periodic payments which the insured is expected to make to the insurance company (insurer) to cover the cost of the financial service being rendered and contribute to the defined benefits that will be paid upon expiration or in the event of the risk occurring.
Answer:
- $1,099,890 billion.
Explanation:
Marginal propensity to consume (MPC) = 0.990
Tax multiplier = - MPC ÷ (1 - MPC)
= - 0.990 ÷ (1 - 0.990)
= - 9
9
change in GDP = Change in taxes × Tax multiplier
= $11110 × (-99)
= - $1,099,890
the minus sign shows a decrease
Hence, the change in equilibrium GDP is - $1,099,890 billion.
