All categories

3 years ago

Pure economic rent is:

Business

1 answer:

shutvik [7]3 years ago

8 0

Answer:

A. The payment to factors whose supply is perfectly inelastic.

Explanation:

This means that this factor of production need to be purchase regardless of the price change, otherwise the business operation couldn't continue.

One example of a pure economic rent is the cost of latex for rubber glove manufacturer. Since latex is the main ingredients for the product, that company still have to buy it even if the price of the latex is increasing (inelastic) . Otherwise, the company need to shut down its operation.

You might be interested in

Way Corporation disposed of the following tangible personal property assets in the current year. Assume that the delivery truck

Dvinal [7]

Answer:

ASSET ORIGINAL BASIS RATE PROPORTION DEPRECIATION

Furniture $60,000 8.93% 50% $2679

Machinery $72,000 10.93% 12.5% $983.70

Truck $20,000 19.20% 50% $1920

Machinery $280,000 7.55% 62.5% $48,212.50

Computer $80,000 50% -

TOTAL $53,795.20

Explanation:

Based on the MARCS depreciation table rates:

For a 7-year recovery period under the Half-Year (HY) Convention, in the 5th year rate = 8.93%

For a 7-year recovery period under the Mid-Quarter (MQ) Convention, purchased during the first quarter, in the 4th year rate = 10.93%

For a 5-year recovery period under the Half-Year (HY) Convention, in the 3rd year rate = 19.20%

For a 7-year recovery period under the Mid-Quarter (MQ) Convention, purchased during the fourth quarter, in the 2nd year rate = 27.55%

For disposal during a year,

Under the Half-year convention. The depreciation amount would be half i.e 50% of the total depreciation for the year

Under the Mid-quarter convention the percentage applied to the full year disposal is

12.5% for First Quarter

37.5% for Second Quarter

62.5% for Third Quarter

87.5% for Fourth Quarter

5 0

3 years ago

Seventy percent of Parlee Corporation's sales are collected in the month of sale, 25% in the month following sale, and 5% in the

GuDViN [60]

Answer: $370,000

Explanation:

Based on the information given in the question, the total budgeted cash collections in April would be calculated as the addition of the sales value from February to April and this will be:

February sale = 5% × $700,000 = $35,000

Add: March sale = 25% × $500,000 = $125,000

Add: April Sale = 70% × $300000 = $210000

Total Collection = $370000

5 0

3 years ago

Which of the following budgets is prepared before the preparation of the production budget? a. Sales budget b. Cash budget c. Di

Gekata [30.6K]

Answer:

a. Sales budget

Explanation:

Sales Budget is the starting point for the Budgetary process. The sales budget projects the number of units to be sold to meet the firms targets.

These units will then need to be used to populate the production required by the firm to meet its sales needs plus any inventory balances.

4 0

3 years ago

Which tests must a company use to determine which operating segments require separate disclosure? A) Revenue test and asset test

Pachacha [2.7K]

Answer:Revenue Test, profit or loss test and asset test are tests to determine which operating segments require separate disclosure.

Explanation:Revenue Tests is the rough determination of the price elasticity of demand for a company's product, this is done by evaluating changes in income that may arise from price change.

Profit or loss test determines if the business is profitable or not.

An asset test is the company's ability to meet it's short term legal responsibilities.

6 0

2 years ago

Employees at American Earners Credit Cards are criticizing the company's fringe benefits package because it forces all employees

velikii [3]

Answer:

Statement is True

Explanation:

By considering cafeteria-style benefits plan, the firm customizes the benefits plan to the employees by allowing them to choose from a variety of benefits.

6 0

3 years ago