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olganol [36]
2 years ago
12

Take 2014 as the price index base year. That year, you paid $80 for a day at a theme park. In 2015, the price was up to $84. Ass

uming that the increase reflects the inflation rate and that this rate continues in 2016, match each number to its description.
a. the 2016 price index
b. the 2015 price index
c. the inflation rate as a percentage.
d. the cost of a theme park visit in 2016 dollars:

1. 88.20
2. 110.2
3. 105
4. 5
Business
1 answer:
Crazy boy [7]2 years ago
5 0

Answer:

a. 110.2

b. 105

c, 5%

d. 88.2

Explanation:

Price index measures the changes in price level over time. It is measure of inflation.

Price index = (price of good in a given year / price of good in the base year) x 100

Types of price indexes

1. Producer price index measures the goods and services produced. this would not increase because it is used cars that is being examined

2. The consumer price index measures the changes in price of a basket of good.

Inflation is a persistent rise in the general price levels

Inflation rate = (change in prices / previous years price) x 100

Types of inflation

1. Demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise

2. Cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect  

a. (88.2 / 80) x 100 = 110.25

b. (84 / 80 x 100) = 105

c. (84 / 80) - 1 = 5%

d. 1.05 x 84 = 88.2

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Answer:

A monopolist that practices perfect price discrimination

  • a. creates no deadweight loss.

Explanation:

Theoretically, if a monopolist is able to practice perfect price discrimination:

  1. marginal revenue curve = demand curve
  2. consumer surplus = 0
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  4. production level = perfectly competitive level of output

4 0
3 years ago
Jack corp. Has a profit margin of 5.1 percent, total asset turnover of 2.3, and roe of 19.64 percent. What is this firm's debt-e
anygoal [31]

Answer: Jack Corp's D/E ratio is 0.67.

We follow these steps to arrive at the answer:

We begin with the DuPont Identity for Return on Equity (RoE)

RoE = Net Profit Margin * Asset turnover Ratio * Equity Multiplier

Substituting the values from the question in the DuPont identity we get,

0.1964 = 0.051 * 2.3 * Equity Multiplier

Equity Multiplier = \frac{0.1964}{0.051*2.3}

Equity Multiplier = 1.674339301


Equity Multiplier = \frac{Total Assets }{Equity}

So,

\frac{1}{Equity multiplier} =\frac{Equity}{Total Assets}

Substituting the value of equity multiplier in the formula above we get,

\frac{Equity}{Total Assets} = 0.597250509

Now,

\frac{Equity}{Total Assets} + \frac{Debt}{Total Assets} =1

So,

\frac{Debt }{Total Assets} = 1 - \frac{Equity}{Total Assets}

\frac{Debt }{Total Assets} = 1 - 0.597250509


\frac{Debt }{Total Assets} = 0.402749491


Now that we have the proportions of debt and equity to total assets, we can  find the Debt Equity (D/E) ratio as follows:

\frac{D}{E} = \frac{\frac{Debt}{Total Assets}}{\frac{Equity}{Total Assets}}

Substituting the values we get,

\frac{D}{E} = \frac{0.402749491
}{0.597250509
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\frac{D}{E} = 0.674339301


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3 years ago
Vern sold his 1964 ford mustang for $55,000 and wants to invest the money to earn him 5.8% interest per year. he will put some o
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Here you go,

$33,000 in Fund A, $22,000 in Fund B.

7 0
3 years ago
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While the role of the state in a command economy is to be __________, in a market economy the state's role is to be __________?
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3 0
3 years ago
Marigold Company uses a periodic inventory system. For April, when the company sold 550 units, the following information is avai
Mars2501 [29]

Answer:

Marigold Company

Cost of goods sold = $9,119

Ending inventory = $7,461

Explanation:

a) Data and Calculations:

                            Units    Unit Cost    Total Cost

April 1 inventory    250         $14            $ 3,500

April 15 purchase  420           17                 7,140

April 23 purchase 330           18                5,940

Total                    1,000                           $16,580

Weighted-average costs   $16.58

Sales                     550

Cost of goods sold = 550 * $16.58 = $9,119

Ending inventory = 450 * $16.58 = $7,461

b) The first computation is for the total cost of goods available, which is then divided by the total units available for sale.  This gives the weighted-average cost per unit.  This unit cost is then multiplied with the units of ending inventory and sales to obtain the cost of the ending inventory and the cost of goods sold, respectively.

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