Answer:
The answer is: Yes, the student is right.
Explanation:
Some industries, especially agriculture, work on some unique ways due to their complexity. For instance, the government sets the price floor and the price ceiling for the main crops produced in the country. In order to do this, the government owns and manages huge warehouses and silos.
When the production of crops is higher than usual, the price of that crop will tend to drop because of excessive supply. The government then buys the crop to put a price floor and takes the overstock to its warehouses. That enables the government to control the market so that farmers get a "fair price" for their crops. If the government didn´t do anything, farmers would lose a lot of money and their customers (agricultural corporations) would probably overstock. That at the same time would cause further problems in the future due to lower future sales because the agricultural corporations companies are overstocked.
When farmers have a bad year due to drought or flooding, their production levels will fall, so the price of the crops would rise due to excessive demand. Then the government sells the crops it had stored previously in its warehouses to put a price ceiling. If the government didn´t do this then a lot of poor people would not be able to buy enough quantities of food.
Answer:
For Jerry, the opportunity cost of building a fence is not making 2 dishes.
Explanation:
The opportunity cost refers to the benefit you lose when you choose one option over another one. In this case, the opportunity cost for Jerry when he decides to build fences is that he won't be able to make dishes. So, as he can build 7 fences or make 14 dishes in a day, the opportunity cost of building a fence is that he won't be able to make 2 dishes.
Answer:
Dividend paid during the year will be $55000
So option (B) will be the correct answer
Explanation:
We have given dividend declared during the year=$60000
Dividend payable at the beginning of the year=$20000
Dividend payable at the end of the year=$25000
We have to find the dividend paid during year
Dividend paid during the year=Dividend payable at the beginning of the year+ Dividend declared during the year-Dividend payable balance at the end of the year
Dividend paid during the year=$20000+$60000-$25000=$55000
So option (b) will be the correct answer
Answer: Money Supply Decrease of $50 million.
Explanation:
$40 million was deposited while $50 million was withdrawn.
The net change in the banking system would therefore be,
= 40 - 50
= -$10 million
($10 million ) means that more money left than came in.
The money supply can be calculated as the net change multiplied by the money multiplier.
The Money Multiplier is denoted as 1/reserve requirement.
Change in Money Supply is,
= -10 million * 1/20%
= -$50 million
Going by the negative number it means that Money Supply reduces by $50 million.
Answer:
Economies of Scale refer to the cost advantage experienced by a firm when it increases its level of output. The advantage arises due to the inverse relationship between per-unit fixed cost and the quantity produced. The greater the quantity of output produced, the lower the per-unit fixed cost.
Explanation:
