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Rina8888 [55]
3 years ago
14

According to ______, market participants immediately change their actions in response to anticipated price-level changes, such t

hat no changes in real output occur.
Business
1 answer:
ZanzabumX [31]3 years ago
3 0

Answer:

rational expectations theory

Explanation:

Rational expectations theory is the tendency of people to behave in a rational manner when presented with economic decisions. It is a widely used theory in economics.

It's states that decisions are made primarily on the basis of information available to them, human rationality and past experience.

So when market participants immediately change their actions in response to anticipated price-level changes such that no changes in real output occur, they are acting according to the rational expectations theory

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Since the Troy Division also sustained an operating loss in the prior year, Rice's president is considering the elimination of t
s2008m [1.1K]

Answer:

c. $30,000 lower

Explanation:

Missing word <em>"Rice Corporation currently operates two divisions which had operating results last year as follows: </em>

<em>West Division Troy Division </em>

<em>Sales $600,000 $300,000 </em>

<em>Variable costs 310,000 200,000 </em>

<em>Contribution margin 290,000 100,000 </em>

<em>Traceable fixed costs 110,000 70,000 </em>

<em>Allocated common corporate costs 90,000 45,000 </em>

<em>Net operating income (loss) $ 90,000 ($15,000)</em>

<em>Options are: a. $15,000 higher, b. $45,000 lower, c. $30,000 lower, d. $60,000 higher"</em>

Particulars                                         Amount

Contribution margin                          $100,000

Less: Traceable fixed costs              <u>$70,000</u>

Segment margin of Troy Division   <u>$30,000</u>

The operating income would been $30,000 less without the segment margin contributed by the Troy Division. Hence, If the Troy Division had been eliminated at the beginning of last year, Rice Corporation's operating income for last year would have been $30,000 lower.

7 0
3 years ago
Which of the following is a downside of a newspaper ad?
AURORKA [14]

Answer:

The ads have a short shelf life.

Explanation:

This is is a disadvantage of newspaper ads and the best option among these.

4 0
3 years ago
Read 2 more answers
The accounting records of Eastlake Industries provided the data below. Net income $ 300,000 Depreciation expense 15,000 Increase
balandron [24]

Answer:

Explanation:

Net income $300,000

Adjustments for noncash effects:

Depreciation expense 15,000

Increase in inventory (2,000)

Decrease in interest payable (1,600)

Increase in accounts receivable ( 1,400)

Decrease in bond premium (3,000)

Increase in accounts payable 7,000

Net cash flows from operating activities

$314,000

6 0
2 years ago
Jim wants to buy some new shoes. a local shoe shop has a pair for $59.95 with a 10% discount. another shop has the same pair for
Y_Kistochka [10]
First option: The adjusted price of this item is 90% of the original price due to the 10% discount.
         
                   Price = ($59.95)(0.90) 
                    Price = $53.955

Second option: The adjusted price is 75% of the original price because of the discount amounting to 25% of the original price.
              
                  Price = ($75.99)(0.75)
                  Price = $56.99

Hence, the lower price is from the first choice.

Answer: $53.96
5 0
3 years ago
Western Airlines operates five flights daily between Chicago and Phoenix during the winter. One flight leaves Phoenix at 12:10 P
8_murik_8 [283]

Answer: idle production capacity

Explanation:

Idle capacity refers to the remaining amount of capacity that is left in a company when both the productive and the protective capacity have been removed from consideration.

Since the plane has a capacity of 120 passengers but he has averaged only 24 passengers, a load factor of 20 percent. Once the plane takes off, the other 96 seats generate no sales and profits to the airline for that flight, then the unique aspect of services does this situation describe idle production capacity.

8 0
3 years ago
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