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tatyana61 [14]
3 years ago
5

Suppose the price of the product that labor is producing increases and simultaneously the price of capital, which is substitutab

le for labor, decreases. Assuming that the substitution effect is greater than the output effect, the demand for labor: Group of answer choices will increase. may either increase or decrease. will not change. will decrease.
Business
1 answer:
soldier1979 [14.2K]3 years ago
6 0

Answer: may either increase or decrease.

Explanation:

The substitution effect refers to the reduction in the sales for a product which is as a result of the consumers switching to a cheaper alternative whenw there is an increase in the price of the good.

Based on the question, if the substitution effect is greater than the output effect, then the demand for labor may either increase or decrease.

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The purpose of a good web page design is to make it_and_ .
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The purpose of a good web page design is to make it successful and admirable
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3 years ago
Logan, a 50 percent shareholder in Military Gear Inc. (MG), is comparing the tax consequences of losses from C corporations with
Musya8 [376]

Answer:

$9,840

Explanation:

In this question, we have to take the difference between the payment for S corporation and the C corporation

If Military Gear Inc is a C corporation, then the payment would be

= Ordinary income × marginal tax rate

= $84,000 × 24%

= $20,160

And, if Military Gear Inc is a S corporation, then the payment would be

= (Ordinary income - net effect) ×  marginal tax rate

= ($84,000 - $41,000) × 24%

= $43,000 × 24%

= $10,320

The net effect would be

= $159,000 - $118,000

= $41,000

The net payment would be

= $20,160 - $10,320

= $9,840

4 0
3 years ago
Ford Motor Company has issued 8% convertible debentures, convertible at a 10:1 ratio. Currently the debenture is trading at 94.
Dafna1 [17]

Answer: $100

Explanation:

Sometimes Debt instruments like Debentures and Bonds are convertible to shares in the company.

To calculate the Conversion Price, the following formula is used;

= Par Value / Conversion Ratio

= 1,000/10

= $100

Par value is usually $1,000 for such instruments.

7 0
3 years ago
A new competitor enters the industry and competes with a second​ firm, which had been a monopolist. The second firm finds that a
Alisiya [41]

Answer: More elastic; Lower

Explanation:

Before the entry of a new firm, there is only one firm exist in the market and that single firm is experiencing a monopoly power. But when there is a entry of its competitor then as a result second firm have to reduce their prices of the products as demand is elastic. We know that market is very sensitive to the prices. This fall in prices will lead to increase the demand for the products but with the lower prices, the marginal revenue of the second firm will be more elastic because of the lower prices.

7 0
3 years ago
Howard Co.'s 2018 income from continuing operations before income taxes was $294,000. Howard Co. reported before-tax income on d
schepotkina [342]

Answer: c. $117,600 and $213,600 respectively

Explanation:

Income tax expense = Income before tax * tax rate

= 294,000 * 40%

= $117,600

Net Income = Income before tax - tax expense + ( Tax adjusted discontinued operations income)

= 294,000 - 117,600 + ( 62,000 * (1 - 40%))

= $213,600

7 0
3 years ago
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