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3 years ago

In the short run, an increase in the aggregate price level caused by a shift in the aggregate demand curve first causes:

Business

1 answer:

ra1l [238]3 years ago

6 0

Answer: b. movement along SRAS

Explanation:

When the price level changes due to an increase in the demand that forces the Aggregate demand curve to shift rightward, the immediate effect would be that the Aggregate demand curve would intersect the Short Run Aggregate supply at a new point.

This new point will see a movement along the SRAS from its previous equilibrium point to the new equilibrium intersection point with the AD curve. In other words, the new point will be on the same SRAS curve just moving from one point to another.

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The reasons for using the variable-cost approach include all of the following except this approach provides the most defensible

Ber [7]

Answer:

The reasons for using the variable-cost approach include all of the following except

this approach provides the most defensible bases for justifying prices to all interested parties.

Explanation:

This is not part of the reasons for using the variable-cost approach. But options b, c, and d are certainly the reasons why the variable-cost approach is used. The variable-cost approach provides a differential analysis for decision-making. It assigns overhead costs to the period in which they are incurred, while other variable costs are assigned to the merchandise produced within that period. Thus, by excluding fixed manufacturing overhead cost, only the direct costs associated with production are used in accounting for the product's costs.

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3 years ago

Cant take big d but i suck on it....

Scrat [10]

.. huh and orange then me too and brown and green faking a red green brown

6 0

3 years ago

Read 2 more answers

Remodeling is an A. neither. B. Asset. C.expense

nikklg [1K]

Answer:

C expense meaning cost money

5 0

3 years ago

Read 2 more answers

The builder of a new movie theater complex is trying to decide how many screens she wants. Below are her estimates of the number

DochEvi [55]

Answer:

Part (a):

Make a table showing the value of the marginal product for each screen from the first through the fifth:

Solution:

The answer is attached.

Part (b):

How many screens will be built if the real interest rate is 5.5 percent?

Answer: 3 screens

Part (c):

How many screens will be built if the real interest rate is 7.5 percent?

Answer: 1 screen

Part (d):

How many screens will be built if the real interest rate is 10 percent?

Answer: 0 screens

Part (e):

If the real interest rate is 5.5 percent, how far would construction costs have to fall before the builder would be willing to build a five-screen complex?

Answer: $727,272.73(approx.)

Explanation:

Part (a):

Make a table showing the value of the marginal product for each screen from the first through the fifth:

Solution:

The solution is attached with working.

Part (b):

How many screens will be built if the real interest rate is 5.5 percent?

Solution:

3 screens

The interest cost of each screen = 5.5% x $1,000,000 = $55,000.

There are no other costs mentioned. The value of marginal product exceeds $55,000 for 3 screens.

Therefore, 3 screens should be built.

Part (c):

How many screens will be built if the real interest rate is 7.5 percent?

Solution:

1 screen

The value of the marginal product exceeds the interest cost (7.5% of $1,000,000, or $75,000) for only the first screen.

Thus, one screen will be built.

Part (d):

How many screens will be built if the real interest rate is 10 percent?

Solution:

0 screens

At 10% interest, the interest cost of a screen is $100,000, more than the value of the marginal product of even the first screen.

Thus, no screens will be built.

Part (e):

If the real interest rate is 5.5 percent, how far would construction costs have to fall before the builder would be willing to build a five-screen complex?

Solution:

The value of the marginal product of the fifth screen is $40,000. At an interest rate of 5.5%, building five screens is profitable only if 5.5% times the per-screen construction cost is no greater than $40,000.

Financial cost per screen = real interest rate x construction cost of per screen

$40, 000 = 5.5% x construction cost per screen Construction cost per screen = $40,000 ÷ 5.5%

= $727,272.73(approx.)

3 0

3 years ago

The product life cycle refers to the stages a product moves through from the time it enters the market until what time?

STatiana [176]

Answer:

Product life cycle refers to the stages a product moves through from the time it enters the market until the time it disappear.

Explanation:

The Product Life Cycle Stages is a model in economics and marketing. Products enter the market and gradually disappear again.

The product life cycle is separated into four different stages,

Introduction.
Growth.
Maturity.
Decline.

So, in this case the correct answer is the product life cycle refers to the stages a product moves through from the time it enters the market until the time it disappear.

3 0

3 years ago