Answer:
<h2>In the case of the salt,the salt buyers would bear most of the tax burden and for caviar,the sellers would bear most of the tax burden.Hence,the correct answer is option b. or buyers of salt and the sellers of caviar.</h2><h2 />
Explanation:
In the case of salt,the supply is more elastic than the demand which implies that the salt sellers are relatively more responsive to salt price change in the market.Therefore,if any tax is imposed on them,it would basically translate into higher production cost for the sellers and due to price elasticity of supply,the sellers would pass the tax to the salt consumers who are comparatively less price sensitive.Now,since the consumer demand for salt is inelastic and the consumers are relatively price insensitive,the consumers won't perhaps mind paying a higher market price for salt including the extra tax.Hence,in this instance,the tax burden would fall on the salt buyers or consumers.
On the other hand,based on the same line of argument,the tax burden would fall on the sellers of caviars as the price elasticity of caviar supply is less than that of the caviar demand.In this case,the caviar sellers are less sensitive about changes in market price of caviars and thus,won't mind paying a relatively higher production cost/expense which is inclusive of the tax burden.Due to higher price elasticity of demand or price responsiveness,the cavier consumers would be reluctant to bear the tax burden and pass it onto the sellers.
Answer:
<u>d. Occupational Safety and Health Act.</u>
Explanation:
When a company provides necessary instruments for the safety of employees in carrying out their tasks, this means a provision of the Occupational Health and Safety Act.
This is a US labor law that was enacted in 1970 and governs federal occupational health and safety law in the private sector and the federal government in the United States.
The main objective of this law is to ensure that the employer offers adequate protection to employees exposed to unhealthy working conditions, stress, excessive noise levels, exposure to toxic products, mechanical hazards, etc.
Answer:
D. $12,000
Explanation:
Allowance for Doubtful accounts = Credit sales * Rate
Allowance for Doubtful accounts = $200,000 * 6%
Allowance for Doubtful accounts = $12,000
Allowance for doubtful account
Particulars Particulars
Balance brought forward $9,000 Bad debts $12,000
Balance carried forward $3,000
Total $12,000 Total $12,000
Therefore, the amount to be debited to Bad debts and credited to Allowance for Doubtful accounts is $12,000.
Answer:
Rest of question:
... equals marginal cost.
Firms will maximize profits at the point where marginal revenue equals marginal cost because producing after this point means that no profits will be made.
As long as the Marginal revenue exceeds marginal cost, there will be profits made because the company is making more than it is spending so they should keep producing. When it gets to a point in production where the marginal revenue equals marginal cost, the company should not produce further than that.
This is because, as earlier mentioned, any further production would result in the marginal cost being larger than the marginal revenue which means that a loss will be made. The company should therefore stop at the point where MR = MC so as not to let MC get larger than MR so that no losses will be made.
Answer:
8.09%
Explanation:
Year Inflation rate 1 + Inflation rate
1 0.03 1.03
2 0.04 1.04
3 x 1+x
Average rate 0.05 0.05
1 + Average rate = [(1+r1)*(1+r2)*(1+r3)]^(1/3)
1.05 = [1.03*1.04*(1*x)]^(1/3)
[1.0712*(1+x)] = (1.05)^3
[1.0712*(1+x)] = 1.157625
1 + x = 1.157625 / 1.0712
1 + x = 1.080681
x = 1.080681 - 1
x = 0.080681
x = 8.09%
Thus, the periodic Inflation rate in year 3 is 8.09%
