The correct option is B. In this type of economy the government has total control over allocation of all resources. <span />
Stocks and bonds each have a different level of risk and behave differently in response to changes in the financial markets. They may also be key ingredients in your mutual funds.
Putting portions of your money into different types of investments could help you in case some of them don’t measure up.
Answer: Decrease in fixed costs
Explanation:
When using the tax-shield approach, the relevant method of calculating operating cashflow is;
= (Sales - Cash Costs) * (1 - tax rate ) + (Depreciation * tax)
Looking at the formula it can be inferred that if fixed costs (part of cash costs) were to decrease, the cash from sales would be higher and would therefore result in an increased operating cashflow for the company.
Answer:
(a) A salaried worker
(c) Bread ingredients
Explanation:
Variable costs are costs that can be modified in the short term, such as wages and inputs in the production process. The more inputs and the more workers, the higher the variable costs. If the cost gets too high, you can fire the worker and buy fewer inputs. By contrast, fixed costs are costs that the company cannot change in the short term, only in the long term, such as capital goods (such as the oven), rent, electricity and water bills. To complete the pricing structure, there is the total cost consisting of the sum of the variable cost and the fixed cost.
