Answer:
the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.
Explanation:
"Budget deficits should be avoided, even if the economy is below potential, because they reduce saving and lead to lower growth." This policy directive follow the long-run framework directs one to avoid deficits; in the short-run framework deficits are useful if the economy is significantly below potential.
<u>The reason is that in the short-run, deficits offer economic solutions by being an antidote to recessions, hence they could be a strategy of recession management in the short run</u>
<u>However in the long-run, deficits are not advisable as they could lead to debts because the major way to manage such deficits is by external borrowings. </u>
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Answer:
Option (B) is correct.
Explanation:
A sunk cost is a cost that was already incurred in the past, alternatively we can say that it is a past cost. These are the costs which cannot be recovered in the future.
The examples of the sunk cost is depreciation expenses, salary expenses, maintenance expense etc.
Therefore, it is not considered in the decision making process which will be held in the future
Since, in the given question, the amount of $12,000 was invested eight years ago which is not recovered now. So, we considered this cost as a sunk cost.
Answer:yes I agree. It is my company and I don’t want to lose money!!
Explanation:
Answer:
Total cost= $100
Explanation:
Giving the following formula:
Joao pays each of his workers $50 per day while incurring a fixed cost of $100 and a variable input cost of $0.20 per cup of coffee for beans, cream, sugar, and paper cups.
I<u>f he does not hire any workers and does not sell a single cup of coffee, his total cost equals his fixed cost.</u>
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Total cost= $100
Accounts receivable, net of the allowance for doubtful accounts is called net realizable value.
<h3>What is net realizable value?</h3>
Net realizable value is the method of knowing the value of asset that is held as inventory. The purpose of this method is to avoid overstating or understating the value of an goods in inventory.
The net realizable value is the result of deducting the costs incurred in selling the goods from its selling price.
Hence, accounts receivable, net of the allowance for doubtful accounts is called net realizable value.
Learn more about net realizable value here : brainly.com/question/794345
