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taurus [48]
2 years ago
6

Gilberto manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot

of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. His employees regularly deal with customer annoyance over the frequent price changes. This is an example of the of inflation.
Business
1 answer:
Stells [14]2 years ago
3 0

Answer:

Menu Costs

Explanation:

From the question we are informed about Gilberto who manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. His employees regularly deal with customer annoyance over the frequent price changes. This case is an example of the of Menu Costs inflation.

In domain of economics, menu cost can be regarded as the cost to a firm that results due to changing its prices. When there is high inflation, firms needs to often make a change to their prices ,so they can keep up with economy-wide changes. The name arised out of the cost of a printing new menus of a restaurants , but it is used by economists when they are generally referring to the costs of changing nominal prices

.

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____________ occurs when a seller takes on various digital identities by opening up several email accounts and bids on his or he
Aleksandr-060686 [28]

Answer:

Shill bidding

Explanation:

Shill bidding occurs when a seller takes on various digital identities by opening up several email accounts and bids on his or her own items multiple times to prompt genuine bidders to provide a much higher bid for an item than they would have done otherwise

5 0
2 years ago
Use the above graph to answer the following question. Which situation could cause the market for mystery books to shift from lin
Rom4ik [11]
A increase in the price of books
5 0
2 years ago
Harrangue Company's standard variable overhead rate is $6 per direct labor hour, and each unit requires 2 standard direct labor
Lorico [155]

Answer:

Total variable overhead variance is express = 2,200

Explanation:

given data

overhead rate = $6 per direct labor hour

actual direct labor hours = 6,000

actual variable overhead costs = $37,000

product manufactured = 2,900 units

to find out

total variable overhead variance

solution

we find here standard variable overhead that is

standard variable overhead = 2900 unit ×  $6 × 2 DL hours

standard variable overhead = $34,800

and

Total variable overhead variance is express as

Total variable overhead variance is express  = actual variable overhead - standard variable overhead

so

Total variable overhead variance is express = 37,000 - 34,800

Total variable overhead variance is express = 2,200

7 0
3 years ago
What is the purpose of the FASFA4CASTER
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6 0
2 years ago
Suppose Sam would like to use $6,000 of his savings to make a financial investment. One way of making a financial investment is
grin007 [14]

Answer:

The correct options are option C and Option D.

Explanation:

Lets look at each option in turn and evaluate whether they are correct or incorrect

Option A: Incorrect. This can be understood by thinking in terms of the classic demand and supply of a given item. If the company issues more shares, there will be a greater amount of shares in the market for a potential investor to buy. This additional supply of shares will put a downward pressure on the price of the shares which will cause the share price to decrease.

Option B: Incorrect. When a company issues shares to raise money, it is known as equity finance. By doing so, the company is increasing its capital which is recorded in the balance sheet under the heading of "share capital". Another statement that will be impacted is the cash flow statement under the heading of cash flow from financing activity. The income statement will not be impacted. If Sam purchases shares from another investor, the company's statements will not be impacted.

Option C: Correct. Expectations of a recession that reduce corporate profits for make investors expect a lower return on investment if they invest in a corporation's shares. This will dampen the demand, thereby decreasing the price.

Option D: Correct. An investor measures the opportunity cost of an investment by generally comparing it to the risk free return that they can get on US bonds. So the investor can alternatively invest in US govt instruments.

Option E: Incorrect. A bond maturing 30 years from now will carry a DIFFERENT interest rate due to the varying tenor. The tenor of a bond affects the risk profile of an investment in the bond which makes bonds of differing maturities offer different returns in line with expectations concerning economic performance.

7 0
3 years ago
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