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3 years ago

Write a summary of the 3 principles of economic activity

Business

2 answers:

nadezda [96]3 years ago

8 0

Answer:

Explanation:

1. The four principles of economic decision making are: (1) people face tradeoffs; (2) the cost of something is what you give up to get it; (3) rational people think at the margin; and (4) people respond to incentives. people face tradeoffs because to get one thing that they like, they usually have to give up another thing that they like. the cost of something is what you give up to get it, not just in terms of monetary cost but all opportunity cost. rational people think at the margin by taking an action if and only if the marginal benefits exceeds the marginals costs. people respond to incentives because as they compare benefits to costs, a change in incentives may cause their behavior to change.

2. The three principles concerning economic.

notsponge [240]3 years ago

3 0

Explanation:

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Evans Inc. had current liabilities at April 30 of $74,100. The firm's current ratio at that date was 1.7.Required:Calculate the

bazaltina [42]

Answer:

* The firm's current assets and working capital at April 30:

+ Current asset $125,970

+ Working capital: $51,870

* The current ratio and working capital at April 30 as if the April 29 payment had not been made:

+ Current ratio: 1.57

+ Working Capital: $51,870

Explanation:

* The firm's current assets and working capital at April 30:

We have Current asset/ Current Liabilities = Current ratio <=> Current asset = Current liabilities x current ratio = 74,100 x 1.7 = $125,970.

Working capital = Current asset - Current Liabilities = 125,970 - 74,100 = $51,870.

* The current ratio and working capital at April 30 as if the April 29 payment had not been made:

- Current asset will be 125,970 + 17,200 = $143,170; Current Liabilities will be 74,100 + 17,200 = $91,300 ( as cash has not be deducted for account payable settlement, as a result, account payable is still maintained balance of 17,200 higher than the scenario where the payable had been settled).

=> Current ratio = 143,170/91,300 = 1.57; Working Capital = 143,170 - 91,300 = $51,870.

8 0

3 years ago

Read 2 more answers

Matt's factory rents equipment and hires students to produce sports bags. Compare the outputs at which Matt's AVC and ATC curves

stiks02 [169]

The output at which the average variable cost is a minimum is smaller than the output at which the average total cost is a minimum because initially when decreasing marginal returns set in, (E) average fixed cost is decreasing at a faster rate than average variable cost is increasing.

<h3>What is the average variable cost?</h3>

In economics, the variable cost per unit is known as the average variable cost.
Divide the entire variable cost by the output to get the average variable cost.
In the short term, the enterprises use the average variable cost to determine whether to stop production.

<h3>What is the average fixed cost?</h3>

The average fixed cost (AFC) is a fixed cost that remains constant regardless of the number of goods and services produced by a corporation.
To summarize, the average fixed cost (AFC) is the fixed cost per unit derived by dividing the total fixed cost by the output level.

Therefore, the output at which the average variable cost is a minimum is smaller than the output at which the average total cost is a minimum because initially when decreasing marginal returns set in, (E) average fixed cost is decreasing at a faster rate than average variable cost is increasing.

Know more about average variable cost here:

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Complete question:

Matt's factory rents equipment for manufacturing sports bags and hires students.

The table gives Matt's average total cost schedule and average variable cost schedule.

The output at which the average variable cost is a minimum is smaller than the output at which the average total cost is a minimum because initially when decreasing marginal returns set in, ______.

A.the total fixed cost initially increases and then decreases

B. total fixed cost is decreasing at a faster rate than total variable cost is increasing

C. average variable cost is decreasing at a faster rate than average fixed cost is increasing

D. total variable cost is decreasing at a faster rate than total fixed cost is increasing

E. average fixed cost is decreasing at a faster rate than average variable cost is increasing

7 0

2 years ago

Suppose that in a certain community, 40% of the residents would answer "yes" to the question, "do you know the names of at least

juin [17]

Answer:

The proportion of people in your sample whose response is yes=40 people

Explanation:

<em>Step 1: Determine the statistical proportion that will say yes</em>

Proportion=40%=40/100=0.4

<em>Step 2: Determine the proportion in the sample that will say yes</em>

The proportion in the sample can be expressed as;

P=S×Z

where;

P=proportion in the sample

S=statistical proportion

Z=sample size

In our case;

P=unknown to be determined

S=40%=40/100=0.4

Z=100

replacing;

Proportion in the sample=0.4×100=40

The proportion of people in your sample whose response is yes=40 people

7 0

3 years ago

Trading centers in other countries helped the mother country in all of the following ways except for

VMariaS [17]

Trading centers in other countries helped the mother country in all of the following ways except for...

Answer: Out of all the options that are shown above the one that is not a way that trading centers helped the mother country is answer choice A) becoming more self-sufficient.

I hope it helps, Regards.

7 0

3 years ago

Read 2 more answers

Describes how consumers ______ purchase decisions and how they _____ and _________ of the purchased goods and services. It inclu

algol13

Answer:

Make - Use - Dispose

Explanation:

Consumer Behavior describes how consumers make purchase decisions and how they use and dispose of the purchased goods and services. It includes factors that influence purchase decisions. In order to make and build successful brands, knowing consumer behavior is very important. Large organisations and brands are always in search of exploring and knowing what consumers are purchasing, how they are purchasing, when they are purchasing and how much they are purchasing. They are also in search of who actually make the buying decision, how he or she makes that decision, how many people are involved in buying decision and how they use their products etc.

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3 years ago