What are the options to choose from?
Answer:
The correct option here is D) $450,000.
Explanation:
The differential revenue from the acceptance offer is the additional amount of revenue that will be generated without affecting the revenue generated from the domestic sales in the normal course of operations.
The differential revenue from acceptance of offer can be calculated as -
= Selling price per unit per offer x number of units per offer
= $15 x 30,000
= $450,000
Therefore $450,000 is the differential revenue from the acceptance of offer.
Answer:
Paying more cash to its creditors and stockholders than the amount it received from them (1)
Explanation:
Stockholders are the primary owners of the company who have invested their money in the company's shares i.e equity holders and expect a reasonable returns higher than their investment.
Creditors are money lenders like banks i.e debt holders who have given loan or bank overdraft to the company and expecting the company to pay back at an agreed date with interest.
A firm creates value by being able to invest money sourced from various investors into a viable project that guaranteed greater returns than the weighted average cost of capital.
Answer:
c. The equilibrium wage will rise, and the equilibrium quantity of labor will fall
Explanation:
Because of the emigration of workers from the Northern Minnesota to Southern Canada, the equilibrium wage rates will rise and quantity of labor will fall.
This happens because the workers that left have already created a vacuum that will be eager to be filled by their employers who will be willing to increase wages for incoming workers to serve two purposes:
1. To entice them to work for the company and fill the vacuum
2. To try to make sure they stay and not leave another vacuum.
The reason the quantity of labour will fall is because of that vacuum created by the departed workers. It's this drop in labor that will make the equilibrium wages to increase.
The best answer for this question would be:
<span>b. domestic producers of jet skis are worse off, domestic consumers of jet skis are better off, and the economic well-being of the country rises.
Because originally the jet skis came from the country they originated from so the quality is original and more trusted to the consumers. </span>
