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mihalych1998 [28]

3 years ago

7

In 1975, interest rates were 7.85 % and the rate of inflation was 12.3 % in the united states. what was the real interest rate

in 1975?

1 answer:

asambeis [7]3 years ago

3 0

-4.45%

Real interest rate is the nominal interest rate minus the rate of inflation:

7.85-12.3 = -4.45%

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3 years ago

Consider the following scenario:Suppose that Sharon has just finished smoking a cigarette and is thinking about throwing the cig

BlackZzzverrR [31]

Answer:

Moral codes and social sanctions

Explanation:

Externality is when the actions of a producer or consumer have an effect on third parties not involved in production or consumption.

Externality can be positive or negative.

Postive externality is when the benefits of economic activities to third parties exceeds the costs.

Negative externality is when the costs of economic activities to third parties exceeds the benefits.

Smoking and littering the environment with cigeratte butts is an example of an activity that generates negative externality.

Sharon's morals and sense of judgement cautioned her against littering with her cigarette butts because she knows such activity is frowned against by the society. So, in this case she is guided by her moral codes.

This is one of the solutions to externality.

Other solutions include:

Taxation

Integration of different types of businesses through merger or acquisition

Contracts

Charities

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3 0

3 years ago

Milano Company has an average overhead cost per hour of $10.50 at 3,500 machine hours, and at 3,000 hours it is $11.25. The comp

Tasya [4]

Answer:

c) VOH/hr = $6 per hour

a) Fixed overhead cost = $ 15,750

Explanation:

Overhead cost is the total of all indirect costs. Indirect costs are those which are not specifically for a particular product. They include indirect material cost, indirect labour cost and indirect expenses.

Variable overhead cost is the portion of the total overhead cost which changes with activity level changes. For example, when more machine hours are worked, more kilowatts of power would be consumed and therefore increase the power cost.

Fixed overhead costs are those which remain on change within a given level of activity.

To separate the fixed overhead from the variable, we use the following relationships below:

VOH/hr = <u>Total [email protected] high activity- Total Overhead @low activity</u>

High activity - Low activity

Fixed Overhead = Total overhead @ high act. - (VOH/hr × High activity)

Note that activity level level is measured in machine hours in this question.

Total overhead = Average cost per hour × Number of hours

Now we can determine the variable overheads per machine hour (VOH/hr)

VOH/hr = <u>(3500× $10.50) - (3,000× $11.25)</u>

3,500 - 3,000 machine hours

= <u>$ (36,750 - 33750)</u>

500 hrs

= $6 per hour

Fixed overhead cost = ( 3500 ×10.50) - ($6 × 3500)

=$ 15,750

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