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2 years ago

In a free market setting where quantity supplied is 40 units and quantity demanded is 50 units, price will:

Business

1 answer:

zvonat [6]2 years ago

4 0

Answer: Increase

Explanation:

According to the Law of Supply and Demand, If the demand for the good is higher than the supply, the price will be higher to reflect the relative scarcity and if the demand is lower than supply, the price will be lower to reflect the relative excess.

In this case the quantity demanded is higher than the quantity supplied so the price will have to increase to reflect the relative scarcity of the good.

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California wildfires destroy vineyards across the Napa Valley. This is during the season when wine festivals occur most often al

vladimir2022 [97]

Answer:

As a result of the wildfire, supply would fall. there would be a leftward shift of the supply curve. the quantity supplied of wine would reduce and price would increase

as a result of the festival, there would be an increase in demand. this would lead to an outward shift of the demand curve. Thus, the quantity demanded would increase and price would increase

taking these two effects together, there would be an indeterminate change in equilibrium quantity and equilibrium price would increase

Explanation:

3 0

2 years ago

"The amount of money that could have been earned by leasing a piece of land to a developer to build a multi-story office buildin

dmitriy555 [2]

Answer:

The options for this question are the following:

A. implicit cost

B. accounting cost

C. explicit cost

D. pure economic cost

E. positive economic rent

The correct answer is A. implicit cost .

Explanation:

Implicit cost is an economics term that refers to the costs of a business that do not require direct spending but, instead, the result of a loss of potential revenue. This concept can have important ramifications for companies and entrepreneurs when they decide how to divide tasks between their workforce and how much they charge for their services. It is also an important concept for individuals to understand when choosing the best time budget for a variety of projects.

The implicit cost of some companies is generally a result of the amount of time it takes a person to complete the business and the time value of that person. For example, if someone hires an independent contractor to complete a plumbing job, that contractor must charge enough to cover their explicit and implicit costs in order to make a profit. The explicit costs will be the cost of the necessary materials, which is quite easy to calculate.

8 0

3 years ago

Read 2 more answers

Banco Macro is expected to generate $150 million in free cash flow next year, and the free cash flow is expected to grow at a co

nirvana33 [79]

Answer:

Stock value per share = $136.8

Explanation:

The value of a firm can be determined using the free cash flow and the Discount cash flow model.

The discounted cash flow model values a firm as the the sum of the present values of the future cash flows generated by the assets of the firm discounted at an appropriate required rate of return. This rate of return (discount rate)is called Weighted average cost of capital (WACC)

The weighted Average cost of Capital is the average cost of capital for the different sources of long-term capital available to a firm weighted according to the proportion each source of finance bears to the total capital in the pool.

Free cash flow to the Firm ( FCFF) is the cash flow from operations minus capital expenditures. It is the cash flow available to all providers of capital after all investments in non-current assets and working capital have been made.

Value of a firm = FCFF (1+g)/(WACC-g)

g- growth rate

Value of Banco = 150 × (1+0.04)/(0.0685- 0.04)

=5473.684211

Value per stock = (Value of the firm - Value of Debt)/ No of stock units

= 5473.68 - 0

40 million units

Stock value per share = $136.8

3 0

2 years ago

When mp3 players emerged and cassette players declined in popularity, what type, or types, of unemployment were created?

-BARSIC- [3]

When mp3 players emerged and cassette players declined in popularity, the type/s of unemployment created were of those who are making the wires, the mp3 players, the cassette players, the CD players and even the owner or companies who are suppliers of products that are needed to assemble the machines.

6 0

3 years ago

Michael owns a machine shop. In reviewing the shop's utility bills for the past 12 months, he found that the highest bill of $2,

Citrus2011 [14]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Highest cost= $2,400 when the machines worked 1,000 machine hours.

Lowest cost= $2,200 when the machines worked 500 machine hours.

To calculate the variable cost per unit and total fixed costs, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (2,400 - 2,200) / (1,000 - 500)

Variable cost per unit= $0.4 per hour

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 2,400 - (0.4*1,000)= $2,000

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,200 - (0.4*500)= $2,000

Total cost= 2,000 + 0.4x

x= machine hour

Finally, the total cost for 1,200 machine hours:

Total cost= 2,000 + 0.4*1,200

Total cost= $2,480

7 0

3 years ago