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3 years ago

Answer the following questions about the (real) inflation tax, assuming that the price level starts at 100.

Business

1 answer:

Rus_ich [418]3 years ago

7 0

Answer:

a) $900 after 1 year

b) $810 after 2 years

Explanation:

This deals with the time value of money concept. This states that money is worth more today than the same amount is worth sometime in the future. The real purchasing power is the nominal purchasing power discounted back as per the prevailing inflation rate.

For a)

$1000 after one year will be worth 1000 * 0.9 = $900 or a reduction of $100 as 1000 today is worth only 900 after 1 year.

For b)

The inflation rate discounts real purchasing power year over year so after 2 years the real purchasing power will be as follows,

Real purchasing power = 900 * 0.90 = $810 which is discounted by 10% inflation for 2 years.

Hope that helps.

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Dairy Days Ice Cream sells ice cream cones for $5 per customer. Variable costs are $2 per cone. Fixed costs are $2100 per mon

qwelly [4]

Answer:

0.6 or 60%

Explanation:

The contribution margin ratio is calculated by the formula below.

Contribution margin ratio = <u>contribution margin</u>

sales revenue

= For Dairy D's

Contribution margin per unit = sales - variable expenses

=$5-$2

= $3 per unit

Contribution margin = <u>Contribution margin per unit</u>

sale price per unit

=3/5

=0.6 or 60%

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3 years ago

Reil [10]

Answer:

The sector which is registered and follows government rules and regulations, having employees and employee unions is called as an organised sector. ... The sector that comprises of small-scale enterprises or units and is not registered with the governmen

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3 years ago

Which benefit is often associated with command economies and most likely

GuDViN [60]

Answer:

The establishment of social welfare programs.

Explanation:

This is the answer for Ap3x.

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3 years ago

Game theory is:A. a strategy that requires cooperation when multiple parties are involved.B. a methodology to accomplish winning

Makovka662 [10]

Answer:

C. the study of strategy and strategic behavior.

Explanation:

Game theory is the study of strategy and strategic behavior. It is assumed that the parties involved are rational. The payoff of a player of a game is determined by the actions of others in the game.

A popular example of game theory is the prisoners dilemma.

A game theory can involve more than two players.

An example of prisoners dilemma:

There are two prisoners - if both confess to a crime, they both get 5 years in prison. If both prisoners don't confess they are set free. If one confess and the other doesn't, the prisoner that confesses 2 years in prison while the other prisoner that didn't confess gets 10 years in prison.

The dominant strategy which is the best option for the prisoner regardless of what the other prisoner does is to confess.

The Nash equilibrium is for both prisoners to defect.

I hope my answer helps you

6 0

3 years ago

There will be a lower equilibrium price and quantity if

denis23 [38]

Answer: demand decreases and supply stays the same

Explanation:

The equilibrium price refers to the price whereby the quantity of goods that's demanded and the quantity of goods that's supplied is equal.

On the other hand, the equilibrium quantity is gotten when the quantity of goods demanded and supplied are equal. This is gotten when the demand curve and the supply curve intersects.

It should be noted that there will be a lower equilibrium price and quantity if

In a situation whereby the demand increases and the supply remains the same, the equilibrium quantity and the equilibrium price will increase and vice versa.

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3 years ago