It’s not but that would be weird considering a lot of people on here are minors
Answer:
II) "As the cost of producing eggs rises, the supply of eggs will tend to fall."
Explanation:
The term supply refers to the quantities of a product that firms are willing to sell at the market price at a specific price or at different prices. Several factors, such as demand, cost of inputs, competition, among others, may influence the supply. As per the law of supply, everything else remaining constant, suppliers will be to sell more at higher prices.
Statement 11 describes supply better that statement 1. In statement 11, an increase in the cost of producing eggs decreases the profit realized from the sale of eggs. When the production of eggs is costly, suppliers may not have the resources to produce them in bulk. The statement recognizes that supply is influenced by demand. An increase in cost will force the suppliers to raise prices, which may lead to reduced demand.
Statement 1 asserts that an increase in price will lead to an increase in price. If the increase in price is a result of an increase in the cost of inputs, then suppliers may not increase the supply. An increase in price, followed by an increase in supply, will result in a market surplus. An increase in prices causes a decline in demand.
Answer:
$34,050
Explanation:
The total job cost consist of the direct and indirect cost (also known as overheads). The direct cost includes the cost of direct materials, direct labour, direct machine hours etc.
While the manufacturing overheads consist of indirect labour cost, depreciation, etc.
Total Direct costs = $10,000 + $13,000
= $23,000
If the allocate manufacturing overhead at 85% of direct labor cost
Manufacturing overheads = 85% × $13,000
= $11,050
The total cost of Job No. 110
= $23,000 + $11,050
= $34,050
Answer:
The yield on a 7-year Treasury note is 5.11%.
Explanation:
Given
Real risk-free rate = r* = 2.05%. Inflation Rate = 3.05% this year, 4.75% next year, and 2.3% thereafter.
Time = 7 years
Maturity risk premium, MRP = 0.05(t- 1)%
First, we'll calculate the average inflation rate for the next 7 years.
This is given by:
((3.05% * 1) + (4.75% * 1) + (2.3% * (7-2)))/7
This is so, because the Inflation Rate is 3.05% this year (1 year), 4.75% next year (1 year), and 2.3% thereafter (7-2=5 years).
So, we have
(3.05% + 4.75% + 11.5%)/7
= 19.3%/7
= 2.757142857142857%
= 2.76%
So, IP7 = 2.76%
The yield on a 7-year Treasury note is calculated by
r* + IP7 + MRP
Yield = 2.05% + 2.76% + 0.05(t- 1)% where t = 7
Yield = 4.81% + 0.05(7-1)%
Yield = 4.81% + 0.05*6%
Yield = 4.81% + 0.3%
Yield = 5.11%