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kow [346]
3 years ago
10

What determines the number and prices of goods and services that will be

Business
2 answers:
KengaRu [80]3 years ago
7 0

Answer:

D. The law of supply and demand

Explanation:

A market economy is an economy that exists in a perfect market. The economy is controlled by the forces of demand and supply. This means that no party controls or determines the price nor the quantity in the market, but the law of demand and supply.

Troyanec [42]3 years ago
4 0

Answer:

D. The law of demand and supply

Explanation:

The law of supply states that all things being equal the higher the price the higher the quantity of a commodity that will be supplied. The law states that when the price of a commodity is high in the market, more of it will be made available to consumers and vice versa

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Emily wants to open a chain of hair styling salons and hopes to attract investors to help finance growth. She considered forming
attashe74 [19]

Answer: A Limited liability company

Explanation:

The best option for Emily would be to form a limited liability company, the limited liability company would: still give her a larger control of the business, have little liability on the investors and there would be no double taxing on her.

A limited liability company is a form of business owned by one or more individuals, where there is limited liability, no double taxing therefore no taxing on the company but the owner is taxed by income, income must not necessarily be shared equally among business owners.

7 0
3 years ago
Assume that the risk-free rate is 6% and the market risk premium is 8%.
valkas [14]

Answer:

r or expected rate of return - market = 0.14 or 14%

r or expected rate of return - stock = 0.2120 or 21.20%

Explanation:

Using the CAPM, we can calculate the required/expected rate of return on a stock. This is the minimum return required by the investors to invest in a stock based on its systematic risk, the market's risk premium and the risk free rate.  

The formula for required rate of return under CAPM is,

r = rRF + Beta * rpM

Where,

  • rRF is the risk free rate
  • rpM is the market risk premium

Under CAPM, the assumption follows that the beta of the market is always equal to 1.

So, expected return on the stock market will be,

r or expected rate of return - market = 0.06 + 1 * 0.08

r or expected rate of return - market = 0.14 or 14%

The beta of the stock is given. We calculate the required rate of return on the stock to be,

r or expected rate of return - stock = 0.06 + 1.9 * 0.08

r or expected rate of return - stock = 0.2120 or 21.20%

4 0
3 years ago
Lakeside Inc. produces a product that currently sells for $64.80 per unit. Current production costs per unit include direct mate
iren [92.7K]

Answer:

a. Incremental costs = (Direct materials + Direct labor) * 20%

Incremental costs = ($26 + $28) * 20%

Incremental costs = $54 * 20%

Incremental costs = $10.8

Incremental selling price = $72 - $64.8 = $7.2

Incremental profit (loss) = Incremental selling price - Incremental costs = $7.2 - $10.8 = $(3.6)

b. No. As there is Incremental loss, it should not be processed further

5 0
2 years ago
Mcmurtry corporation sells a product for $180 per unit. the product's current sales are 12,900 units and its break-even sales ar
Sedaia [141]

14%

Margin of Safety:

[(current sales - break even)/current sales] * 100

(12900-11094)/12900] *100

(1806/12900)*100

.14*100 = 14%

6 0
3 years ago
Which of the following is a microeconomic topic? A) the unemployment rate of the United. States economy as a whole. B) the rate
NikAS [45]

Answer:

The correct answer is C, the advertising strategy of a particular company.

Explanation:

Option is about the rate of prices increase in Brazil as whole,hence that involves the households,the businesses and the government, it is a macroeconomic topic

The increase in the national income of the United States over the past three months is also a macroeconomic topic as it involves the activities of the government of US as well as businesses and private individuals.

The unemployment rate focused on the proportion of the able population who are not gainfully employed in the economy as a whole is also a macroeconomic topic

8 0
3 years ago
Read 2 more answers
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