Answer:
The problem with the argument that infant industries need to be protected from foreign competitions are as follows:
1, Fall in standard of living
2. Barrier to free trade
3. Invitation to trade wars
4. Protection of inefficient industries
5. Distortion of free market actors
Explanation:
1. Fall in Standard of Living - Consumers are not forced to patronize producers of substandard products due to the barriers to suppliers of high quality imported goods.
2. Barrier to Free Trade- Trade protection is a barrier to free international trade, the gains of the principles of comparative cost advantage upon which international trade is established will be lost.
3. Invitation to Trade Wars - Other countries may take retaliatory measures
which may eventually lead to trade war between or among trade partners.
4. Protection of Inefficient Industries - The incentive to perform better is not there when infant industries are protected from foreign competitors.
5. Distortion of free market actors - Protection leads to distortion in market equilibrium which will lead to market failure.
Answer:
elastic
16%
32%
decrease
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Answer:
The options do not match the case, since Sandi proposed the corporation and Walter is having second thoughts about it due to corporate taxes.
Walter might be right or wrong depending on the type of corporation that they choose to form. If they choose to form a S corporation they will not be double taxed, since S corporations are pass through entities. But if they choose to form a C corporation, then they will be subject to double taxation since the C corporation will have to pay income taxes and Sandi and Walter will also be required to pay income taxes.
Both C and S corporations provide their stockholders limited liability, so neither Sandi or Walter will be personally liable for any obligation that the corporation may acquire or be imposed to (e.g. lawsuits).
Answer:
Joannie contributes $2,000 to her record. 50% of the venture is coordinated by the business, that is $1,000 is contributed. The normal yearly return is 4%. The period is 20 years. The tax rate is 39.6%.
Compute the immediate return.
Immediate return = Tax savings + Employer matching contribution
Immediate return = ($2,000 × 39.6%) + ($2,000 × 50%)
Immediate return = $792 + $1,000
Immediate return = $1,792
Compute the return on investment.
Return on investment = Immediate return / Amount invested by Joannie
Return on investment = $1,792 / $2,000
Return on investment = 0.896 or 89.6%
Answer and Explanation:
The computation is shown below;
a.
Particulars Comp A Comp B Comp C
cash revenue $61,000 $61,000 $61,000
Less: depreciation $16,250 $36,000 $21,775
($72,000 - $7000) ÷4] {$72,000 × (25%× 2)] ($72,000 - $7,000) × $67,000 ÷ $200,000)
net income $44750 $25,000 $39225
b. As it can be seen that the net income for the company A is considered to be the highest and the same is to be considered