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3 years ago

According to F.A. Hayek, what is the fundamental economic problem facing society?

Business

1 answer:

jenyasd209 [6]3 years ago

8 0

Answer:

According to F.A. Hayek, the fundamental problem facing every society is how to use limited resources in the most optimal way possible.

Explanation:

To Hayek, this problem could not be fully solved by any society, but the best a society could do is to rely on the price system, only possible under a free market, to signal which uses were more optimal than others.

This is also the reason why F.A. Hayek, along with fellow Austrian economists Ludwing Von Mises, believe that socialism could not work: socialism, according to Hayek and Mises, destroyes the price system, and without it, society has no rational way to allocate resources in an optimal way.

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Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year.

Katen [24]

Answer:

Predetermined manufacturing overhead rate= $240 per order

Explanation:

Giving the following information:

Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 120,000 500 orders

<u>To calculate the predetermined overhead rate, we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 120,000/500

Predetermined manufacturing overhead rate= $240 per order

6 0

3 years ago

Although the use of financial leverage (debt financing) can increase the return to the owners of a business, it also increases t

Tomtit [17]

Answer:

True

Explanation:

Once the company starts taking loans to fund its investment their financial risk starts growing which is only beared by the Shareholders not by the bond holders. This additional risk faced by the ordinary share investors means that now they will require additional return. Remember the financial risk only exist if their is the use of leverage or we can say if the financial leverage increases then the financial risk increase. And if the financial risk increases then this additional risk is only beared by the ordinary share investors. Now additional risk beared is the reason why ordinary shareholders means that this has increased the riskiness of their equity investment.

4 0

3 years ago

Why are foreign mnes like ups seeking to invest in india?

jarptica [38.1K]

The foreign MNC's like UPS seeking to invest in India because of the country's market potential, skilled workforce and political stability.

The foreign MNCs are investing in India because of cheaper production costs. India is a critical growth market for logistics giant United Parcels Service (UPS) as it aims to provide the predictable and reliable service to B2B domestic market through its new venture called MOVIN.

India's market potential, skilled workforce and political stability are the three key reasons that make India the favored destination for foreign investment. When compared to other countries India is a relatively cheaper place to conduct business.

Hence, these reasons attracts foreign investors towards India.

To learn more about MNC's here:

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4 0

2 years ago

APB Opinion No. 28, Interim Financial Reporting, concluded that interim financial reporting should be viewed primarily in which

Effectus [21]

Answer: C. As reporting for an integral part of an annual period.

Explanation:

Interim Financial reporting should be treated as an important and complete part of the annual financial statement. It should follow all the generally accepted accounting principles. More reason for that is tax rates used in interim report is the same that is used in the annual financial statement as well (due to the estimate taken in the interim report). Many of the firms consider the interim financial reporting as an integral part of the annual report.

7 0

4 years ago

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,050,00

Keith_Richards [23]

The Year 0 net cash flow is $1,092,000.

a real zero cash flow property, sometimes known as "zero," is a highly leveraged asset that is set up so that the net operating income (NOI), which serves as the basis for distribution to equity investors, equals the loan payment.

Calculation for the Year 0 net cash flow:

The sprayer's base price of robotic paint sprayer is $1,050,000.

The installation of robotic paint sprayer is $24,000.

Book value of the robotic paint sprayer = base price + installation

= $1,050,000 + $24,000

= $1,074,000

Year 0 net cash flow = Book value + Net working capital

= $1,074,000 + $18,000

= $1,092,000

Therefore, the year 0 net cash flow is $1,092,000.

To know more about estimation of net operating income (NOI), here

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8 0

2 years ago