Answer:
A) are possible because proportional increases in inputs yielding the same proportional increase in output may induce higher input prices.
Explanation:
Constant returns to scale mean that any proportional increase in inputs will result in an equally proportional increase in outputs.
The price of inputs might also rise because their supply curves are also upward sloping. This would result in an increasing cost industry, that will have an upward sloping long run supply curve.
So an industry can have constant returns to scale and upward sloping supply curve.
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Answer:
$45,000
Explanation:
Equipment cost: $165,000
We substract first the residual value of $15,000
Depreciable amount = $165,000 - $15,000
= $150,000
By the straight-line method, we divide the depreciable amount by the number of useful life years to obtain the depreciation per year:
Depreciation per year = $150,000 / 10 years
= $15,000
The equipment was purchased in 2021, it means that 3 years will have passed by the end of 2023. To find the depreciation expense at this moment in time we multiply the previous number by three.
Depreciation for 2023 = $15,000 x 3
= $45,000
The complete question is
In the above figure, the inflationary gap when AD2 is the aggregate demand curve equals
A) the difference between 110 and 100.
B) the difference between $12.5 trillion and $12.0 trillion.
C) LAS minus SAS at a price level of 100.
D) AD1.
The Answer is option B the difference between $12.5 trillion and $12.0 trllion.
Explanation:
The inflationary gap is calculated by subtracting anticipated GDP from real GDP of the economy. The x-axis represent the national income and y-axis represent the expenditure.
It is the excess of aggregate demand over its level required to maintain full employment equilibrium in the economy. in the figure AD2 represents the aggregate demand curve.
Thus, inflationary gap when AD2 is aggregate the demand curve equals the difference between $12.5 trillion and $12.0 trillion.