Answer:
the European Central Bank (ECB) should engage in a contractionary monetary policy
Explanation:
A contractionary monetary policy takes place when a central bank (or the Fed) reduces the money supply in order to cool down the economy, lower inflation rate or like in this case, wants to offset expansionary fiscal policy.
The central bank initially raises the interest rates and starts selling more securities in order to absorb cash from the markets.
Answer:
1. The elasticity of demand for movie tickets must be INELASTIC.
2. Demand curves become LESS elastic in the long run. This means that the ticket price increase will likely be MORE profitable in the long run.
Explanation:
1. As demand is inelastic, the percentage of price increase will be greater than the decrease in the quantity of tickets demanded, and consequently profit will increase.
2. In the long term, demand becomes inelastic. Consequently, in the long term the percentage of the price increase will continue to be greater than the percentage of decrease in the quantity of tickets demanded.
Answer:
The contract would be described as <em>International Contract.</em>
Explanation:
<em>International Contracts: </em>International contracts refers to a legally binding agreement between parties based in different countries, in which they are obligated to do or not do certain things. International contracts may be written in a formal way such as the example of Frank contracting an Indian television provider.
Consequently, Frank and the Indian television provider having entered into a contract, are governed by international contract law unless they agree to abide by the laws of one of the US and India.
Moreover, <em>International sales contracts </em>are governed by the <em>United Nations Convention on Contracts for the International Sale of Goods (CISG) from 1980.</em>
Answer:
$63,140
Explanation:
For computing the total amount of product cost first we have to find out the total product cost per unit which is shown below
Direct material cost per unit + Direct labor cost per unit + Variable manufacturing overhead per unit + Fixed manufacturing overhead per unit.
= $6.70 + $3.40 + $1.50 + $3.80
= $15.40
Now the
Product cost is
= units produced × cost per unit
= 4,100 units × $15.40
= $63,140
We simply applied the above formulas
Answer:
Neutrino Industries must sell <u>8.68 million shares</u> to raise $400 million.
Explanation:
To calculate this, let B represents the number of shares Neutrino Industries must sell. Therefore, we have:
Gross proceeds = $49 * B, or $49B
Underwriter charges = 6% * $49B = $2.94B
To raise $400 million, we deduct the underwriter charges from gross proceeds and solve for B as follows:
$49B – $2.94B = $400,000,000
$46.06B = 400,000,000
B = 400,000,000 / 46.06
B = 8,684,324.79 shares, or 8.68 million shares.
Therefore, Neutrino Industries must sell <u>8.68 million shares</u> to raise $400 million.
