Answer:
d) $13
Explanation:
contribution margin per unit:
- product B = $45
- product C = $39
- product D = $25
contribution margin per machine hour:
- product B = $45 / 2.5 = $18
- product C = $39 / 3 = <u>$13</u>
- product D = $25 / 1.25 = $20
the company should first produce 800 units of product D and use 1,000 machine hours. Then it should produce 680 units of product B using 1,700 machine hours. In order to produce the remaining 20 units of product B and the 600 units of product C, the company must rent machine hours and the maximum possible price per hour is $13 (contribution margin per machine hour product C).
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
1) Marginal propensity to consume (MPC) for this economy is 0.75 as it denotes the spending of the household and saving of 0.25 and the spending multiplier for this economy is
= Spending Multiplier(M)
= 1 ÷ 1 - MPC
= 1 ÷ 1-0.75
= 1 ÷ 0.25
= 4
2). Decrease in government purchases will lead to a decrease in income, generating an initial change in consumption
= -Amount of Government Decrease Purchases by × MPC
= -$250 billion × 0.75
= -$187.5 billion
3). Decrease income again, causing a second change in consumption
= Amount Decrease in Government Purchases × MPC
= -$187.5 billion × 0.75
= $140.6 billion
4).Total change in demand resulting from the initial change in government spending
= Amount of Government Decrease Purchases by × Spending Multiplier(M)
= $250 × 4
= $1,000 billion
= $1 trillion
As we can see that the income falls by $1000 billion in the end, so AD shifts to the left by the size of $1 trillion
In the question the graph is missing. Kindly find the attachment for both of question and answer
Answer:
option (D) $50 billion.
Explanation:
Data provided in the question:
Additional investment spending = $20 billion
MPC = 0.6
Now,
Increase in aggregate demand = [1 ÷ (1 - mpc) ] × Investment
or
Increase in aggregate demand = [1 ÷ (1 - 0.4) ] × $20 billion
or
Increase in aggregate demand = (1 ÷ 0.4) × $20 billion
or
Increase in aggregate demand = 2.5 × $20 billion
or
Increase in aggregate demand = $50 billion
Hence.
the correct answer is option (D) $50 billion.
Answer:
The intrinsic value of A -$44.57 is higher than that of B- $ 29.71
Explanation:
<em>The intrinsic value is the present value of he expected future dividend discounted at he required rate of return.</em>
<em>So, we would work out the intrinsic value of the two stocks using the the formula below:</em>
Intrinsic value = D× (1+r)/(k-g)
Intrinsic value of stock A
D-3, r-11%, g-4%
= 3 ×(1.04)/(0.11-0.04)
=$44.57
Intrinsic value of stock B
D-2, r-11%, g-4%
= 2 ×(1.04)/(0.11-0.04)
= $29.71
False. <span>Labor and population statistics are examples of sources for internal data that are accessed by a database. The correct answer is sources for external data. External data refers to data that is collected from an outside data source and stored in table like programs for company to use when evaluating their labor and population around their area. </span>
