<span>The company is using market-penetration pricing.</span>
Answer:
Correct option is C
Explanation:
Total E&P = $ 160000
Total voting Right Sold = 50/ (100+100) = 25%
Reduction of E& P due to exchange = Total E&P*Total voting Right Sold
Reduction of E& P due to exchange = 160000*25%
Reduction of E& P due to exchange = 40000
Reduction of E& P Lower of Total E&P*Total voting Right Sold or Amount realised
Reduction of E& P Lower of 40000 or (50*1000)
Reduction of E& P Lower of 40000 or 50000
Answer
C. A reduction of $40,000 in E&P because of the exchange.
Answer:
In the first range of prices (with PED 15 - 2.5) as the price of the good or service falls, total revenue should increase. Imagine that a 1% reduction in price will result in a 15% increase in quantity demanded. The same happens when PED = 2.5, since a 1% reduction will increase quantity demanded by 2.5%.
e.g. price = $100, quantity demanded = 100, total revenue = $10,000
- price falls to $99, quantity demanded increases to 115, total revenue = $11,385
- price falls to $99, quantity demanded increases to 102.5, total revenue = $10,147.50
On the other range (PED = 1.5 - 0.75) as the price of the good or service falls, at first total revenue will increase but then it will decrease.
e.g. price = $100, quantity demanded = 100, total revenue = $10,000
- price falls to $99, quantity demanded increases to 101.5, total revenue = $10,048.50
- price falls to $99, quantity demanded increases to 100.75, total revenue = $9,974.25
To a macroeconomist savings occurs when a person's income exceeds his consumption while investment occurs when a person or firm purchases new capital such as a house or business equipment.
Answer:
$392,500
Explanation:
January 1,2021 200,000*12/12 $200,000
September 1,2021 $300,00*4/12 $100,000
December 31,2021 $300,000*1/12 $25,000
Borrowing costs to be capitalized $750,000*12%*9/12 $67,500
Average Accumulated expenditure for 2021 $392,500
Please note that borrowing costs incurred on construction loan will also be capitalized as it is specific construction loan..
All the expenditures have been averaged out from the date they are incurred.
