Answer:
a. 3.80
Explanation:
This ratio is also called sales turnover.
This represent how much a dollar invested in asset can increase sales.
A higher ratio increase the profitability of the company and represent the efficiency of the assets in the business.
sales/average assets = sales to assets ratio
<u>where:</u>
<em>average assets = (beginning assets + ending assets)/2</em>
(175,000 + 167,000)/2 = 171,000
sales to assets :
650,000/ 171,000 = 3.801169 = 3.80
A "market economy is based on personal choice.
Answer: A direct relationship
Explanation: The link or relationship between money supply and inflation rate : In normal economic circumstances, if the money supply grows faster than real output it will cause inflation. In a depressed economy (liquidity trap) this correlation breaks down because of a fall in the velocity of circulation. This is why in a depressed economy Central Banks can increase the money supply without causing inflation. This occurred in the US between 2008-14
However, when the economy recovers and velocity of circulation rises, increased money supply is likely to cause inflation.
In other words ,If you are Increasing the money supply faster than the growth in real output will cause inflation. The reason is that there is more money chasing the same number of goods. Therefore, the increase in monetary demand causes firms to put up prices.
Answer:
d. the oligopolists earn the highest profit when they cooperate and behave like a monopolist.
Explanation:
An oligopoly is when there are few large firms operating in an industry.
When oligopoly firms come together and agree to set a price, they are known as cartels and are acting as a monopoly. Firms in a cartel earn the highest profit because they act as a monopoly compared to when they aren't in a cartel and each firm sets their own prices to maximise profit. In a case where firms in an oligopoly do not form a cartel, they engage in price wars and other forms of competition which might make firms earn lower profits compared to when they are in a cartel.
Collusive agreements aren't always binding. Firms might have incentives to cheat on the agreement if the payoff from cheating is higher than not cheating.
I hope my answer helps you.
