Answer: See explanation
Explanation:
The increase in income for Spendia will be:
= 1 / (1 - MPC)
where MPC = 0.8
= 1 / (1 - 0.8)
= 1 / 0.2
= 5
Increase in income = Gross investment × multiplier
= $100 × 5
= $500 million
The increase in income for Savia will be:
= 1 / (1 - MPC)
where MPC = 0.5
= 1 / (1 - 0.5)
= 1 / 0.5
= 2
Increase in income = Gross investment × multiplier
= $100 × 2
= $200 million
Answer:
The correct answer is the option A: distressed inventory.
Explanation:
To begin with, in the field of business management and marketing as well, the term of "distressed inventory" refers to the situation where the company has for a long time its products that are not being sell and for that reason the inventory is getting stuck in the business without obtaining profits from that situation. Therefore that in order to address that problem the marketing department alongside with the head manager should start online liquidators to increase the number of sales of those products.
Answer:
$50 and $2
Explanation:
The computation of the total revenue and the marginal revenue is shown below:
Total revenue is
= Price × quantity
= $2 × 25
= $50
And, the marginal revenue is received collected from one unit i.e price of the one units that equivalent to $2
Hence, we simply applied the above formula to determine the total revenue and the marginal revenue
GDP is the sum of all final goods and services produced by an economy in a given period. In calculating GDP only the final goods and services that are traded are accounted for. Thus, household services that do not generate income are not accounted for in GDP, only productive activities. Therefore, in the long run the tendency is that the GDP analyzed by this issue will decrease, because when the unemployment rate increases, fewer workers will be employed in the productive sector. These people may substitute work for leisure or household chores, but this will not count in GDP.
Answer:
STARK COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31
PARTICULARS AMOUNT$
Service Revenue 20,000
<u>Less-Expenses</u>
Supplies expense 200
Interest expense 500
Insurance expense 1800
Utilities expense 1300
Depreciation expense 2000
Wages expense 7500
Total expenses <u>13,300</u>
Net profit <u>$6,700</u>
STARK COMPANY
STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31 Amount$
Retained earnings December 31 prior year end 14,800
Add- Net income 6,700
Less- Dividends 3,000
Retained earnings, December 31 Current year end $18,500
