in this case, identical changes in autonomous consumption and autonomous government spending: <span> have different effects on equilibrium income
When a factor is implemented and have two different reaction, it is safe to assume that that factor have two different effects.
For example, an increasing interest in technology(autonomous consumption) may increased the investment for tech products. The government spending may not give as much influence in this context because it wont affect the transaction between the customers and the producer
</span>
Current supply and output. Until recent years, Organization of Petroleum Exporting Countries (OPEC) often set supply through a quota system.
Answer: $83
Explanation:
Given that,
On 1 June,
Materials purchased = 50 units
Unit price of material = $1.30
On June 15,
Materials purchased = 50 units
Unit price of material = $1.20
Total cost of 65 units:
= (Material purchased on 1 June × Unit price of material) + [(65 units - 50 units) × $1.20]
= (50 units × $1.30) + (15 units × $1.20)
= $65 + $18
= $83
Answer: b. Economies of Scope
Explanation:
Economies of Scope refers to a situation where a company is able to reduce the cost of producing two or more goods by combining their production thereby leading to savings in the production process.
Economies of Scope in effect points out that there are some goods that when produced in tandem with another, lead to a cost reduction which means that its savings is <em>based on variety</em>.
Goods that usually achieve Economies of Scope are goods that are compliments, produced by similar methods or use similar inputs for production.
Firm A merging with Firm B produced the 5 radios and batteries cheaper so the new company is experiencing Economies of Scope.
Answer:
Software solutions was hired to install and update software.
When job was completed,
Total revenue paid by Jones company = $1,800
As of December 31,
software installation completed = 1/2
Service revenue = 0.5 × $1,800
= $900
Therefore, the adjusted journal entry for the revenue is as follows:
On 31st December,
Accounts receivable A/c Dr. $900
To Service revenue $900
(To record revenue earned)
