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3 years ago

Total revenue decreases as the price of a good increases. true or false

Business

1 answer:

Ipatiy [6.2K]3 years ago

8 0

Answer: False

Explanation:

Total Revenue is the total amount that is received in return on sales of goods and services.

It is calculated as Price multiply by Quantity.

If the price of a product increases the revenue would also increase ceteris paribus( all things being equal). If the price of a product was $10 and 4 units were purchased Total revenue would be $40 and if price increases to $20 and 4 units were still purchased total revenue would be $80 assuming that we’re not taking into consideration any other factor like elasticity or type of good.

If price increases revenue increases too.

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On December 15, 2021, Rigsby Sales Co. sold a tract of land that cost $3,500,000 for $5,000,000. Rigsby appropriately uses the i

qaws [65]

Answer:

In 2022, Rigs-by gross profit=$682,500

Explanation:

Profit=Price at which land is sold- Actual price of land

Profit=$5,000,000- $3,500,000

Profit=$1,500,000

Gross Profit=Profit/Price at which land is sold

Gross Profit=$1,500,000/$5,000,000

Gross Profit=0.3=30%

In 2022, Rigs-by gross profit= $Gross\ Profit*\frac{Price\ at\ which\ land\ is\ sold\ -\ down\ payment }{2}$

In 2022, Rigs-by gross profit= $0.3*\frac{\$5,000,000-\$450,000}{2}$

In 2022, Rigs-by gross profit=$682,500

8 0

3 years ago

The United States is able to experience economic growth to the extent that

kvasek [131]

Answer:

The correct answer is the option E: consumers are encouraged to buy domestically produced goods.

Explanation:

To begin with, in order to the economy to grow the country must encourage the consumers to buy more domestically produced goods so that the when the demand increases so does that income of the firms and that impacts in the demand that the companies do as well. Therefore that the country, and that is, the firms and the government, should encourage the increase of consumption from the buyers in order to intend to experience an economic growth.

6 0

3 years ago

Read 2 more answers

"The balance sheet of Ambiance Corporation reported current assets of $186,708, total assets of $300,000, current liabilities of

Alika [10]

Answer:

5.17(Approx)

Explanation:

Given that,

Current assets = $186,708

Total assets = $300,000

Current liabilities = $36,139

Total liabilities = $125,000

current ratio = current assets ÷ current liabilities

= $186,708 ÷ $36,139

= 5.17(Approx)

Therefore, the company’s current ratio is 5.17.

8 0

3 years ago

The Case of the Poorly Written Manual John Howard was shaking his head as he left the meeting with his boss, Joe French. Joe was

forsale [732]

John's assumptions in making this decision are that the three new product engineers are not capable writers and that their writing is terrible. John also believes that the only way the technical manual can be brought up to company standards is by offering a course in technical writing.

This is not an appropriate strategy for resolving the issue, as decisions should never be made based solely on assumptions, such as the fact that the product engineers in question are new hires and therefore unable to write. This is further explained below.

<h3>What is a decision?</h3>

Generally, a decision or conclusion was arrived at after careful deliberation.

In conclusion, When John was making this choice, he made a number of assumptions, one of which was that the three new product engineers are not competent writers and that their writing is horrible. John is also of the opinion that the only way the firm's technical handbook can be brought up to the standards of the corporation is by providing students with the opportunity to take a course in technical writing.

Because choices should never be made entirely based on assumptions, such as the fact that the product engineers in question are new employees and hence unable to write, this is not a suitable technique for fixing the problem. Decisions should never be made solely based on assumptions.

Read more about a decision

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5 0

2 years ago

Consider each of the transactions below. All of the expenditures were made in cash.

Allushta [10]

Answer:

1. Dr Research and development expenses $25,000

Cr Cash $25,000

2. Dr Legal fees expenses $8,500

Cr Cash $8,500

3. Dr Equipment $38,000

Dr Discount on Note Payable $5,599

Cr Cash $19,000

Cr Note Payable $24,500

4. Dr Building - sprinkler system $41,000

Cr Cash $41,000

5. Dr Patent $25,000

Cr Cash $25,000

6. Dr Equipment new $13,900

Dr Accumulated Depreciation - equipment $7,000

Dr Loss on trade in $3,600

Cr Cash $10,600

Cr Equipment - old $13,900

Explanation:

Preparation of the journal entries

1. Dr Research and development expenses $25,000

Cr Cash $25,000

2. Dr Legal fees expenses $8,500

Cr Cash $8,500

3. Dr Equipment $38,000

Dr Discount on Note Payable $5,599

($38,000-$19,000-$24,500)

Cr Cash $19,000

Cr Note Payable $24,500

4. Dr Building - sprinkler system $41,000

Cr Cash $41,000

5. Dr Patent $25,000

Cr Cash $25,000

6. Dr Equipment new $13,900

Dr Accumulated Depreciation - equipment ($13,900 - $6,900) $7,000

Dr Loss on trade in $3,600

($10,600+$13,900-$13,900-$7,000)

Cr Cash $10,600

Cr Equipment - old $13,900

5 0

3 years ago