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Fudgin [204]
3 years ago
7

From a firm's point of view, when the demand for a good has a price elasticity of 0.5, then, all things remaining the same, a(n)

: increase in the price of the good will decrease the firm's revenue. increase in the price of the good will increase the firm's revenue. change in the price of the good will not affect the firm's revenue. change in the price of the good will not affect the quantity of the good demanded by consumers.
Business
1 answer:
jeyben [28]3 years ago
6 0

Answer:

The correct answer is: increase in the price of the good will increase the firm's revenue.

Explanation:

When the demand for goods has a price elasticity of 0.5, it implies that the demand is relatively inelastic. This implies that a proportionate change in price will cause less than proportionate change in price.

So when the firm increases the price of a good, this will lead to a smaller decline in the quantity demanded of the commodity. As a result, the total revenue will increase.

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Your company has just taken out a 1-year installment loan for $82,500 at a nominal rate of 12.0% but with equal end-of-month pay
Bas_tet [7]

Answer:

89.63% of 2nd month payment will go towards the payment of principal.

Explanation:

Loan Payament per month = r ( PV ) / 1 - ( 1 + r )^-n

r = rate per period = 12% per year = 1% per month

n = number months = 12 months

PV =  present value of all payments = $82,500

P = payment per month = ?

P = 1% ( $82,500 ) / 1 - ( 1 + 1% )^-12

P = $7,330 per month

Month Payments Principal Interest Balance

1                 -7330              -6505     -825       75995

2                -7330              -6570      -760      69,425

Percentage of Principal Payment  = Principal payment / totla monthly payment = $6,570 / $7,330 = 0.8963 = 89.63%

6 0
3 years ago
Grainger Company is a major automotive parts manufacturer operating in six countries. It has no restrictions on stock sales and
alisha [4.7K]

Answer:

The correct word for the blank space is: public.

Explanation:

A public corporation has sold stock through an<em> Initial Public Offering </em>(IPO) to the public and that stock is currently traded on a <em>public stock exchange</em> or the <em>Over-The-Counter</em> (OTC) market. The ability to sell public shares is very important to these businesses as it provides them with a source of capital for investment.

5 0
3 years ago
The numerator of the return on common stockholders' equity is_____________. a.income before income tax b.operating income minus
elena-s [515]

The numerator of the return on common stockholders' equity is net income minus preferred dividends.

Option d

<u>Explanation:</u>

Return on common stockholders' equity which is also named as return on equity (ROE) ratio evaluates the accomplishment of a company in resulting income for the benefit of common stakeholders.

<em>Use of return on equity:</em>

  • Isolates common equity returns
  • Can be used to evaluate dividends
  • Evaluates the use of capital by the management

It is calculated by income available for stockholders divided by the total number of common stock and is expressed or represented in percentage. Income available for common stockholders can be arrived by reducing preference dividends from Net income.

That is, \text { Net income }-\text { Preference dividends }=\text { Equity available for common stockholder }

Hence, net income minus preferred dividends is the right answer.

3 0
3 years ago
On december 2017 coolwear had a balance in its prepaid insurance acount of 68,400. During 2018, 106,000 was paid for insurance.
NNADVOKAT [17]

Answer:

$132,400

Explanation:

Calculation for the Insurance expense

Using this formula

Insurance expense= 2017 Ending Balance in prepaid insurance account+ Amount paid for insurance-2018 Ending Balance in prepaid insurance account

Let plug in the formula

Insurance expense=$68,400+$106,000-$42,000

Insurance expense=$132,400

Therefore the Insurance expense recorded 2018 would be $132,400

8 0
3 years ago
On July 8, Jones Inc. issued an $75,700, 8%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends o
Marizza181 [45]

Answer:=Jones recognizes $386.9  as interest

Explanation:

Fiscal year ending July 31st

there are 23 days between when the cash as issued ie July 8 and the end of the fiscal year on July 31st

Given amount or Principal amount = $75,700

Rate= 8%

Interest = Principal x Rate x Time

  $75,700 x 8% x 23/360=$75,700 x 0.08 x 23/360

=$386.9

Jones recognizes $386.9  as interest in the current fiscal year.

3 0
3 years ago
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