Answer: Option D
Explanation: Accounting profit is always equals to or greater than the economic profit of an entity. This is due to the fact that, while computing accounting profit the accountant do no take implicit cost into consideration.
Whereas, economic profit is the amount of profit remaining after deducting both explicit and implicit cost.
Implicit cost refers to the cost of loosing profits by choosing one alternative over other.
The money multiplier is the amount of money that is generated from the reserves of a bank:
$100/0.10 - $100 = $900 billion
The money supply is
$100/0.10 = $1000 billion of $1 trillion
If the reserves is changed to 20%, the money multiplier and money supply will decrease
If the LRATC curve is falling, economies of scale are present.
<h3>What is LRATC?</h3>
- A business indicator known as long-run average total cost (LRATC) shows the average cost per unit of output over a lengthy period of time when all inputs are assumed to be erratic and the production scale is flexible.
- The long-run average cost curve displays the long-run total cost of production at the lowest level of output.
- Because businesses can adjust major parts of their operations, like factories, over a lengthy period of time to attain maximum efficiency, long-term unit costs are typically lower than short-term unit costs.
- Identifying the lower boundaries of LRATC is a goal shared by investors and firm management.
- If the LRATC curve is falling, economies of scale are present.
To learn more about LRTAC refer to:
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Answer:
0.5.
Explanation:
Assets - Liabilities = Owner's Equity.
As the name states, the debt to equity ratio is simply obtained by dividing total debt (liabilities) by the total equity, total assets should not be included:
Rajan Company's debt to equity ratio is 0.5.
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