Answer:
Option (D) is correct.
Explanation:
There are two kinds of effect:
(1) Substitution effect : It is related to the relative price changes.
(2) Income effect: It is related to the change in purchasing power.
The substitution effect refers to the change in the consumption of a good with any change in the relative price of the good. If there in an increase in the price of one good then as a result the demand for that good decreases and the demand for other substitute good increases because of the lower price.
Answer: The opportunity cost ratio for Jedidiah Schlepp per week is 1.2 gizmos per unit of whatsit or 1.2:1.
Jedidiah Schlepp can produce a maximum of either 24 gizmos or 20 whatsits in a week.
So,
24 gizmos = 20 whatsits
Since we need to express the opportunity cost ratio as number of gizmos to one unit of whatsit, we divide both sides of the equation by 20.
We get,
Answer:
Credit cost of goods sold $100.
Debit merchandise inventory $100.
Credit accounts receivable $400.
Debit sales returns and allowances $400.
Explanation:
These are the demonstrate required journal entries of Dogs R US to record the return.
Credit cost of goods sold $100.
Debit merchandise inventory $100.
Credit accounts receivable $400.
Debit sales returns and allowances $400.
A) Accounting profits dont take implicit costs into account, only "real" or quantifiable costs.
Thus the present value of a 120,000 lease at 5% for three years with explicit costs of $40,000 maintenance is:
PV = [ FV/(1+r)^n ] - (Explicit Cost)
PV = 120000/(1.05^3) - (40000*3)
B) same thing but add implicit costs ...
PV = 120000/(1.05^3) - (40000*3) - (55000*3)
Answer: he partnership may be sued as well as the partners, and the partners' liability is unlimited (D)
Explanation:
