Answer:
a) 25,000
Explanation:
The computation of the economic profit is shown below;
Economic profit is
= Revenue - Explicit cost - Implicit cost
= $550,000 - $500,000 - $500,000 × 5%
= $550,000 - $500,000 - $25000
= $25,000
Hence, the economic profit on this deal was $25,000
Therefore the correct option is a.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
Index Value= 39
Explanation:
Index Value=(37+115+85)/3=39
Answer:
-$27,800
Explanation:
When the inventory closing balance is overstated, the cost of goods sold is understated and as such the net income which is posted to the retained earnings will be overstated
. When an expense is overstated, the net income is understated and so is the retained earnings.
The net overstatement of inventory across the two periods
= $58,500 - $10,500
= $48,000
The net overstatement of depreciation across the two periods
= $24,800 - $4,600
= $20,200
Adjustments to retained earnings
= - $48,000 + $20,200
= -$27,800
What is the question? Lol
Answer:
b. expectations that stock prices would fall further could shift the AD curve further to the left.
Explanation:
The AS/ AD model stated the aggregate supply and aggregate demand model which stated level of prices and its output by maintaining the relation between the supply and demand
As in the given situation, it is mentioned that the aggregate supply of short run decline and that brings deflation and it moves the economy back to the output i.e potential. It impacts the expectation of stock prices would result in declines and further it shifted the AD curve to the left side
Hence, the correct option is B.
