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3 years ago

The crowding-out effect refers to the possibility that:

Business

1 answer:

Natalka [10]3 years ago

6 0

Answer:

a. a deficit, financed by borrowing in the capital markets, will increase the interest rate and reduce investment in the private sector.

Explanation:

Crowding out effect is when government borrowing from the capital markets leads to an increase in interest rate. this makes it more expensive for private sector to borrow and this reduces investment by private sector

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If firms are producing at a profit-maximizing level of output where the price is less than the average total cost:_________

Travka [436]

If firms are producing at a profit-maximizing level of output where the price is less than the average total cost economic profits must be zero.

Profit-maximizing is the process of determining the most effective way to maximize earnings, either in the short or long term. It primarily focuses on identifying the price and output level that generates the greatest profit. It is a crucial premise that supported the development of numerous economic theories, including the pricing and production theories.

Profit maximizing is the sole goal of organizations, and conventional theories are built around this idea. It is also viewed as the organization's most rational and fruitful business goal. It aids in determining corporate organization behavior and the impact of various economic conditions.

To know more about profit-maximizing

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5 0

1 year ago

PLEASE HELP!!! ONLY GOOD ANSWERS,

Helga [31]

The sooner you need the money, the less risk you will be willing to take on.

If you have until you retire, you may be more willing to gamble on riskier investments for the potential of bigger returns because if it doesn't work out you will still have plenty of time to make up the loss. However, if you need the money sooner for a car you should only take on a minimal amount of risk.

7 0

3 years ago

Crane Company can produce and sell only one of the following two products: Oven Contribution Hours Required Margin Per Unit Muff

Makovka662 [10]

The question is reproduced in the table below for clarity

Oven Contribution

Hours Required Margin Per Unit

Muffins 0.2 $4

Coffee Cakes 0.3 $5

Answer:

Total contribution margin = $ 60,000.00

Explanation:

When a business is faced with a problem of shortage of a resource which can be used to produced more than one product type, to maximize the use of the resource , the business should allocate it for production purpose in such a way that it maximizes the contribution per unit of the scare resource.

Therefore Crane Company should alocate the oven hours to maximise the contribution per unit of oven hour. This is done as follows:

Step 1

Calculate he contribution per oven hour and rank the product

cont/hr ranking

Muffin $4/0.2 hour = 20 1st

Coffee cakes $5/0.3 hour= 16.67 2nd

Because Muffin generates the highest contribution per hour of Oven, Crane should allocate all the resource to it

Step 2

Calculate the Total contribution from the production of Muffin

Total contribution margin = 20 per her × 3000

= $ 60,000.00

8 0

3 years ago

Read 2 more answers

HELP me please

lara31 [8.8K]

Brainly can solve anything

4 0

3 years ago

Assume that Mahmood Corp. lends Ahmad $10,000 in exchange for a $10,000,

kolezko [41]

Answer:

1) the present value of the note:

PV of face value = $10,000 / (1 + 8%)³ = $7,938.32

PV of interest payments = $1,000 x 2.5771 (PV annuity factor, 8%, 3 periods) = $2,577.10

PV of note = $10,515.42

2) Dr Notes receivable 10,515.42

Cr Cash 10,000

Cr Discount on notes receivable 515.42

3) assuming the loan was made January 2, 2021

Date Cash flow Discount Balance

January 2, 2021 -$10,000 $10,515.42

January 2, 2022 $1,000 $171.81 $10,343.61

January 2, 2023 $1,000 $171.81 $10,171.80

January 2, 2024 $11,000 $171.80 $0

4) December 31, accrued interest on notes receivable

Dr Interest receivable 1,000

Dr Discount on notes receivable 171.81

Cr Interest revenue 1,171.81

7 0

2 years ago